I am an Australian resident who owns the right to a share of profits from an American mine. Extraction of minerals from the mine has yet to begin. Currently the contract specifying my share of profits from the mine is under my name but I am considering having the contract to be rewritten to be under the ownership of a company which I have yet to set up in order to minimize my tax obligations. From research I have conducted so far it seems that forming a Cyprus Offshore Company would offer the lowest tax rates, in addition I would consider relocating to a country that imposes no taxes on foreign income. However, there are a few things I am uncertain about which I wanted to clarify:
1. Does Cyprus, or any other country for that matter, classify income from mining profits as royalties, interest or dividends?
2. Could I have the contract rewritten so that it is under the ownership of the Cyprus Offshore Company while still maintaining my anonymity? Is it even necessary to have the contract rewritten, could I simply write a contract that transfers my entitlement to profits to the Cyprus Offshore company?
While I'm okay with paying 10% on my profits, if anyone was aware of any other offshore structure that could offer lower tax savings than the one I have proposed I'd like to hear your response.
1. Does Cyprus, or any other country for that matter, classify income from mining profits as royalties, interest or dividends?
2. Could I have the contract rewritten so that it is under the ownership of the Cyprus Offshore Company while still maintaining my anonymity? Is it even necessary to have the contract rewritten, could I simply write a contract that transfers my entitlement to profits to the Cyprus Offshore company?
While I'm okay with paying 10% on my profits, if anyone was aware of any other offshore structure that could offer lower tax savings than the one I have proposed I'd like to hear your response.
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