Also here I found it very useful what already has been posted but want to make some comments too.....
There may be salvation from being plucked by the greedy hand of state, and it comes in the shape of tax competition. Tax competition is when state regimes pursue an approach of lowering taxes with the desire to urge the flow of investments into their country or to make sure that monetary resources don't leave from their jurisdiction. If you've got a business or you are merely a regular employee in a high-tax country, you can certainly save some money by paying less tax or occasionally none whatsoever by exploiting so called tax havens.
Tax refuge is outlined by wikipedia as the existence of a composite tax structure established intentionally to use, and exploit, an international requirement for opportunities to take part in tax avoidance. put simply tax havens are places where foreigners can house their assets, do business and pay little taxes. First I should put out a proviso to those who are thinking, hey this is great, I am able to just move all my business dealings to a tax refuge country and I'm able to avoid being taxed by my regime.
Not so fast! It is not quite that easy to simple for some individuals to circumvent the long reach of the tax man If as an example you are living in a land that levies taxes on worldwide earnings then a ton of what I'm going to introduce to you in this post isn't going to be of that much use to you ; at least not on a private tax level.
Even if you want to run an offshore business you may run into unpleasant anti controlled foreign concern ( CFC ) laws. 2 countries that quickly come to my mind which tax the global revenue of their voters and firms are : the US & Canada. Most states evaluate taxes based mostly on residency, not citizenship. For Americans there isn't any escaping the long arm of the IRS.
If you live in any of those nations I bet I haven't got to tell you why it could be a great idea take a look into some legal method of assuaging your tax burden.
Maybe looking into tax havens is good for you. It actually depends on your unique circumstances and finance wants and goals. You must definitely talk with a tax expert as well as a pro in the offshore finance arena before you embark on this journey. your journey a touch less complicated by doing a little bit of research for you. I'm going to go thru a listing of well-liked tax refuge states and outline the benefits and disadvantages. This should at least give you a little bit of a direction as to where you want to focus your research on. Yes, I am doing advocate that you do some in-depth research before you even seriously consider attempting to outwit the tax man.
For the sake of abruptness I cannot review each tax sanctuary in the world, so instead I'll concentrate on some of the more preferred ones. I'm going to avoid tax havens states that have so called sold out and given into too much into the pressures of the high-tax states to limit you privacy and financial liberty. So without further ado, here are the nations in all of their tax free glory.
Belize Pros :
- No tax on worldwide earned earnings for IBC
- the sole English-speaking country in South America
- reasonable IBC incorporation charges : Approximately EUR 995 to include with continuing costs of about EUR 900 a year.
- just one Investor is necessary. There's no official record of the Stockholder.
IBCs need just one Director who might be an establishment, and needn't be resident in the country. Conferences of Stockholders and / or Directors may be held in any country, at any point and they may attend conferences by stand in. No need to file accounts or to have accounts checked. Public filing restricted to certificate of incorporation, memo and articles of organisation, registered office and name and address of registered agent
CONS: Untrustworthy electricity as well as phone and net services. This wouldn't be to much of a difficulty if all that you need is an IBC. However if you plan to open a checking account in Belize I could definitely see this becoming quite a pain.
- Rather debatable political stability. They'd a regime change lately and the new regime didn't respect commercial citizenships and passports of the prior regime.
- This is unquestionably not something you would like to hear. it is yet to be seen how things will turn out.
Seychelles
Seychelles Pros :
- An International Company is exempted from local taxation
- there's no duty to file financial statements, but a company must keep records to reflect its fiscal position.
- A Seychelles IBC needn't designate a company secretary, while it is traditional to do so.
The secretary might be a natural person or body company, be of any nationality and needn't be resident in the Seychelles. Also the minimum number of stockholders is one four ) Same day incorporation. Five ) There are no exchange controls. Six ) Bearer share companies are available.
Cons :
- Seychelles IBCs are routinely incorporated with an authorized share capital of US five thousand with par value. This being the maximum for the minimum licence costs. The authorized share capital might be voiced in any currency. The minimum issued capital is either one share of no par price or one share of par value.
- Seychelles Tax Info Sharing Agreements they're concerned in some 20 such agreements. They'll exchange info in criminal matter in relation to cash including those associated with taxation, customs duty or trade price list. This doesn't talk to well for those engaged with privacy.
- Moderately poor IT and telecomms services.
