What's the use of elect volunteer a 1% tax?

[rockrock]

St Vincent LLC's and others allow to opt-in for a 1% tax.

Saint Vincent and The Grenadines (SVG) IBC / Territorial Taxation

As the International Business Company (IBC) offshore structure no longer exists in St Vincent due to some changes in early 2019, I understand all companies are now liable to pay 30% tax. There was a grandfathering provision for IBCs incorporated pre-Dec 2018 but as I understand this comes to an...

www.offshorecorptalk.com

What's the use of that?

Well, you can pay a bit tax and get a tax assessment letter. Can you see scenarios where this would help compared to pointing out that such companies are tax exempt? Useful for AML elsewhere?

Belize introduce corporate tax of 1,75% to please the banks.

there is a crucial difference between the 'is' status and the 'planned' one. In the furure, you have to prove, that you pay taxes elsewhere, if you can not, you have to pay taxes in Belize - see page 160 here http://www.ibcbelize.com/wp-content/uploads/2019/01/IBCAmendment_24_of_2018.pdf

www.offshorecorptalk.com

 

[Martin Everson]

St Vincent LLC's and others allow to opt-in for a 1% tax.

Saint Vincent and The Grenadines (SVG) IBC / Territorial Taxation

As the International Business Company (IBC) offshore structure no longer exists in St Vincent due to some changes in early 2019, I understand all companies are now liable to pay 30% tax. There was a grandfathering provision for IBCs incorporated pre-Dec 2018 but as I understand this comes to an...

www.offshorecorptalk.com

What's the use of that?

Like you mentioned the point of paying the 1% tax is to ensure your IBC gets a tax certificate. Your just basically paying for a tax certificate. Also showing your company has been subject to corporate tax may also help in certain structures and countries where untaxed income may otherwise be treated differently.