Offshore to avoid tax! need fast and reliable solution, how please?

[pesto]

New to this stuff but I have been informed by one of my business partners that it is possible to avoid tax if business is done in offshore company Now, how is that and where can it be done?

 

[JohnLocke]

First of all I would like to know what exactly are you looking for, just a cheap solution? What are your goals for a offshore company?

 

[zozexroninho]

Hi Admin...


I need your help... I m an Internet Marketer selling e-books and this kind of stuff... I need an advise from you what offshore company i need and what bank account do you propose me... Its important that i need the use of paypal, clickbank and other affiliates networks and i want this to be tax free.. i would also prefer to be anonumous...


1.) I was thinking a seychelles copmany with an account in Cyprus.... is that ok??


2.) What is merchant account... Is something like paypal?? You can answer me if you want by pm and you also can answer me in greek... Thnx a lot...

 

[JohnLocke]

1.) I was thinking a seychelles copmany with an account in Cyprus.... is that ok??

Well first of all welcome aboard, regardless what offshore jurisdiction you go for then it will be a problem with PayPal, since they are country specific and require you to login to your account from a IP address that is located same place as the company then which makes it difficult. That's one of the major issues at the moment, there are solution and also cheap solutions out there to solve the verification process by some sort of cheat, however, we do not support this nor are vi engaging in such.

2.) What is merchant account... Is something like paypal?? You can answer me if you want by pm and you also can answer me in greek... Thnx a lot..

A Merchant Account is required when you want to accept credit card payments directly on your website without using services like 2co.com, PayPal, Moneybookers and similar, actually it is a contract you have directly with an Acquiring bank that will withdraw the money from the credit card holder's and insert them into your account. Before this is possible you need a payment gateway as well, most often the Payment Gateway provider has one or several agreements already in place with banks to forward merchant's interesting in opening a merchant account.

 

[tropico]

How do you guys legaly want to aovid taxes ? Don´t you pay income tax in your countries or taxes on dividends ? And: you as beneficial owners of an IBC´s, don´t you get taxed in your country in general, if the principal place of business is there as well ? Doesn´t your local revenue service ask, what you make your living of, if you move your existing business into an IBC-structure (even if you start a new business ) ?

 

[JohnLocke]

How do you guys legaly want to aovid taxes ? Don´t you pay income tax in your countries or taxes on dividends ? And: you as beneficial owners of an IBC´s, don´t you get taxed in your country in general, if the principal place of business is there as well ? Doesn´t your local revenue service ask, what you make your living of, if you move your existing business into an IBC-structure (even if you start a new business ) ?

You are posting the same question in multiple thread's actually no one in this thread say that they want to avoid "personal income tax" - thre are options to get partial income tax free regardless where you live.

 

[tropico]

In the other posting, it was explicit about avoiding income tax (is there any difference between "personal income tax" and "income tax" ?). If a layman talks about "tax free", it´s always implicates no taxation at all. However, what are the legal options to be at least "partial tax free" ? Why doesn´t it matters, where somebody is living ? What´s about accumulated profits/ earnings and taxation For example: In the US, there is at least a 39.6% penalty surcharge on earnings retained in a corporation to avoid the higher personal income taxes to which they would be subject if paid out as dividends to the owners.


Of course, we are not talking about corporate tax etc. when it comes to an IBC.

 

[JohnLocke]

it was explicit about avoiding income tax (is there any difference between "personal income tax" and "income tax" ?). If a layman talks about "tax free"

One and the same thing, correct. I think what was used to mend is the differences between personal and corporate tax to be paid.


Anyway, it is possible dramatically to reduce the tax regardless what tax we speak. We have seen this done many times also it is difficult in certain cases to accomplish then it is still possible, my best suggestion would be to consult one tax attorney or tax consultant and pay them for the solution that fit your needs and your situation.

 

[BusinessMan]

Avoid corporate tax YES but not personal income tax, right?

 

[zozexroninho]

After reading all in this site i have some questions... If someone can help me...


Here is the deal.. I m selling some e-books in greek. i ll translate them and sell them in french, russian and spanish... So i need a company to do it...


From all these that i ve seen in this forum a Seychelles Holding Company and a Cyprus trading Company is the best option with bank account and merchant account in Cyprus.


1.) I pay 10% tax or 0%??


2.) I can register in Paypal moneybrookers etc??


3.) I can use affiliates networks like the russians (Kavanga.ru, MixMarket.biz), Clickbank and french affiliates ( netaffiliation.com , affilipub.com ), or they dont accept these kind of companies??


4.) Do i have to register and pay VAT?


5.) do i stay anonymous?


6.) Is the seychelles company alone capable for all these?


For the admin: If possible, can u tell me if that solution works... If yes, please give me a cost of all this if i order it to you... If not, please propose me something.. You can answer me by pm

 

[JohnLocke]

This solution works, if the website and the business model is like you describe it I don't see any complications.


However, I'm not sure if the costs involved to setup a Seychelles holding + Cyprus trading and bank account will reflect the earnings at your company. I'm not sure it this a start up business or do you actually have a running business?


The corporate tax in this case will be 0% if structured correctly. For sales that are made in the EU in business to consumer transactions you will have to charge VAT i certain cases, also for this there is a solution if set up correctly.


In regards to the anonymity then it will not be possible to accomplish that as long as you will apply for a Merchant account, ANY bank worldwide who will accept your business will do proper due diligence so your identity will be revealed since it is mandatory for the bank to know the beneficial and ultimate beneficial owner.

 

[zozexroninho]

It is a start up business... Tell me if i corporate your company, what the price for this structure?? The earnings for the first year will possibly be no more than 2000euros/ per month but next years may increase...


Is there any cheaper way to do it?? Can this work with only a seychelles company...


The most important is that the company must be accepted in affiliates networks like clickbank and some others... Thats where i m planning to advertise....


Pay pal since i m going to have my own merchant account is not such a problem... Something else?? Merchant account accepts also prepaid cards?


If u want u can send me an email or a pm analising me exactly what it is suitable for me from your experience... U can also use greek in it... Thanks a lot...

 

[JohnLocke]

I have send you a PM, otherwise you are always welcome to send us a contact ticket and ask questions or request a proposal/quote

 

[clemens]

Clickbank has no problems with Seychelles nor Cyprus corps. you can contact them directly so they can confirm. When you say merchant account you mean direct MID correct? The due diligence process a Acquriing bank and even 3rd party payment processors carry out will not leave any space for anonymity your identity will be revealet to the bank and anyone else who will ask for it! PayPal will not accept Seychelles companies, further we have learned from several threads on this forum that they are country specific, means you will need some VPN / VPS solution setup so your IP will be from the country you apply. Means if it is a Cyprus company you need a Cyprus IP address to connect if it is a Seychelles company you need a Seychelles IP and so on.


Exceptions are, Moneybookers, Alertpay, 2co.com and the other smaller e-wallet companies.

 

[orangeye]

I can confirm now that Clickbank don't have any problems with any offshore company, they accepted my Seychelles corp.

 

[zozexroninho]

Let me understand something... Because i m a bit


U have an offshore company in Seychelles, with an offshore bank account and offshore merchant account for example.. This company sells an e book in france. As i know you must register for VAT in a european country... ok so far?


1.) Cyprus for example will it give to you VAT registration??


2.) I have an offshore hotsing sell page in french. Trought clickbank or other affiliates networks i promote my ebooks. Byuers come to my sell page and pay me through my merchant account. I dont know if the byuer is from France or from Canada !!! if i dont register for VAT, how the authorities can track me? And for which authorities do we speak?? French or Seychelles???


3.) I pay some advertisement in sites or affiliates networks or everything else. The receipts i give to them are accepted by them or they refuse to get them because i m an offshore company and i m in a lot of countries black list for tax avoidance??


4.) i Have the money from my sales in an offshore bank account. And i have a credit or debit card to get a daily amount of them from any ATM around the world. i can then get the max daily fee every day, right??


Please help because i dont understand if my thoughts are correct. Is there anyone expert about the company structure of an online e-shop for ebooks?? i Would be happy to talk to him and ask from his experience.


P.S: Admin, i m waiting for your email which will explain me details and give an idea of the whole cost. Please if possible . Also note about prices that i ll be in Cyprus in summer if this makes some steps cheaper... .


Thanks a lot for reading me...

 

[JohnLocke]

U have an offshore company in Seychelles, with an offshore bank account and offshore merchant account for example.. This company sells an e book in france. As i know you must register for VAT in a european country... ok so far?

Correct


1. Yes thats correct, if you register the Cyprus company for VAT you will receive a VAT number.


2. I assume it is clickbanks merchant account correct? If we speak a Seychelles company you won't need to worry about the VAT nor the tax authorities because it is not applicable.


3. That should not be the case, any business partner, regardless where they are located, should accept a receipt or give one to your Seychelles company.


4. Yes that is correct, most often it is a Debit card not a CREDIT card.


Actually if you have send an e-mail to us then it is not for me personally but it will go to the help desk. If you don't have received a e-mail by the latest by Monday then resend the e-mail or contact us by live chat, Skype or phone.

 

[zozexroninho]

Then it is clear...


A seychelles company should register for VAT when selling digital products in EU consumers without physical presence in this country....


But if this company doenst register for VAT, although its illegal, it cant be traced easily by the authorities so VAT money isnt applicable...


So with an offshore company in Seychelles i can sell allover the world digital products (including EU) without paying any tax at all (neither VAT nor corporate tax...)


right? If i havent understood something ok, please tell me...

 

[clemens]

How does VAT and Seychelles are connected? There is no VAT in the Seychelles. If the director if the company reports the VAT and he is a nominee you don't have to worry about your privacy :w:

So with an offshore company in Seychelles i can sell allover the world digital products (including EU) without paying any tax at all (neither VAT nor corporate tax...)

This is correct, but don't worry about the VAT if we speak a Seychelles company then forget about VAT!

 

[zozexroninho]

And whats about eu directive for digital products?