Jurisdictions with 4% <= CIT < 10%

[pucecacou]

Hi, when being tax resident in Andorra, the law states that if the CIT paid in an offshore jursidiction is at or above 4%, there is no need to top it to match the local CIT rate of 10% of Andorra, which could equal to savings of max 6% compared to running a local company strictly.

Are there jurdictions worldwide with such a fitted CIT rate that could benefit from this opportunity ? I wonder about some areas of Switzerland, can't you find rates at 5% ? Where else ? Cheers

 

[Marzio]

Barbados: 5.5% on profits not over $500K

 

[Sols]

I think the lowest non-zero standard corporate tax rate is Barbados, which starts 5.50%.

Hungary is 9%.

Montenegro starts at 9% but goes up to 15%.

Lowest in Switzerland is typically around 11-12%.

 

[Marzio]

Also Small and medium companies that are not registered as VAT payers and correspond to specific criteria may opt for a special CIT regime of 4% in Moldova.

https://taxsummaries.pwc.com/moldova/corporate/taxes-on-corporate-income

Hungary is 9%

If you add local business tax is 11%

being tax resident in Andorra

The problem with Andorra it that it has few DTT so, even if you'll find a country with reduced tax rate, you will probably not going to benefit because of the WHT paid by that country to Andorra.

 

[JohnnyDoe]

How is personal taxation in Barbados?

 

[pucecacou]

WHT ?
The andorran law stipulates you're exempt from local CIT so that means double taxation, if paying a minimum of 4% CIT abroad already

 

[Sols]

Looks like Lithuania has 5% for small companies, under 300,000 EUR annual revenue. It's 0% the first year, though.

How is personal taxation in Barbados?

Something similar to territorial taxation system for non-doms. Probably goes well with genuinely foreign businesses but not if you run a company locally.

 

[pucecacou]

Also Small and medium companies that are not registered as VAT payers and correspond to specific criteria may opt for a special CIT regime of 4% in Moldova.

That's perfect since as a prop trader, I'm not subject to VAT.
How are the dividends taxed in these 2 countries / setups ?

Anyone can recommend CSPs for Moldovia & Lithuania ? Will get in touch

Apparently, dividends are tax exempt in Moldovia. Well, in Andorra too
15% for Lithuania

 

[Onassis]

A UK treaty non-resident limited company, coupled with Lithuanian corporate tax residency (via branch office) seems like the best solution out of the ones mentioned so far.

 

[lavel]

Barbados: 5.5% on profits not over $500K

that's really not bad..

 

[pucecacou]

Oh my bad, Moldova's WHT is at 6%

Any reasonably economical (yet reliable) CSP for Barbados to make it worthwhile ?

Edit: looks like banking in general for Barbados is complicated. In need of a crypto friendly option on top

 

[Sols]

Barbados is on the FATF list of jurisdictions under increased monitoring. It has been there for years. This makes it challenging to open bank account for a Barbadian company. None of the local banks will accept you. If you need a crypto friendly bank, you might be able to place the company with an EMI or, if you are deep pockets, with banks in Switzerland or Liechtenstein.

Some of the most well known service providers in Barbados: Trident Trust, Citco, Amicorp, St James, and the Big Four accounting firms.

Incorporating in Barbados has never been as big of a business as Seychelles, BVI, and Belize for example, where forming a company is quick and cheap. Expect pricing along the lines of Cayman Islands and Bermuda, in the 8–12,000 USD range for set up and similar in annual costs (plus accounting and additional fees).

 

[pucecacou]

https://lawstrust.com/en/offshore-company-formation/barbadosSo this should be a crappy partner at $1620 /yr ?

Thanks for your input @Sols. Will contact Sygnum, Mt Pelerin, Condensat technologies in Switzerland & others. Bankera already said no, not a good sign indeed.

Edit: Mt Pelerin just said yes, they're a very practical "bankless" direct to blockhain on-off ramp with plans to become a full EMI with also a bill-payment service similar Monerium / Swapin / Bity. Okay tariffs in case of token membership acquired

 

[Sols]

https://lawstrust.com/en/offshore-company-formation/barbadosSo this should be a crappy partner at $1620 /yr ?

I don't see them listed as a licensed service provider in Barbados, so they're just reselling someone. Licenced Service Providers – International Business Unit

Can't comment on the quality. I almost never work with resellers. But the pricing seems very low.