Why use an offshore company?

[Doc_offshore]

Today more and more people ask them self. Why use an offshore company for my investment and asset protection? It is true that every year a new jurisdiction close down there offshore financial activities because OECD, The private Club made by the US - Europe and a few other countries that think they are entitled to manage the worlds economy, disagree with the way taxation is managed in the jurisdiction. But there is a few jurisdictions that still manage to be offshore havens.

One of them is Seychelles. The last 10 years has been very interesting for this jurisdiction. With more than 10 double taxation agreements signed the new CSL company looks like it could be a winner. With 1,5% tax on profit and requirement to annual reports, these companies can take dividends, royalties etc. from companies in China, Thailand, South Africa and even Cyprus without being riped of by CFC, gain and withholding tax. Seychelles even have SEZ ( Special Economic zones) or Freezones where you can setup companies and do international trading without high taxation and custom.

Another jurisdiction is Norway... Yes Norway or more specific - Svalbard. Svalbard is under norwegian administration but not directly a part of the norwegian kingdom. Accordign the the Svalbard Treaty signed by 48 countries in 1920, in article 8, taxes and duties shall be devoted to the territories and may not exceed what is required for the objects view. http://www.lovdata.no/traktater/text...01.html#map008
For that reason there is no VAT / Salestax on Svalbard and incometax is less than 20%. Corporate tax is 15%. The legal system i based in Norwegian law and the currency is NOK Kroner. Remember Norway do not have foreign debt only a oil-trust worth a few hundred billion US$. Svalbard could be a good palce to secure your assets.


Doc Offshore

[3esam]

I really agree with you, offshore company is a vehicle that can help only those involved in cross border business transactions or which will only function effectively as a mechanism to help companies mitigate their tax exposure.

[Ms_Margaret]

Following are some more benefits:

Corporate Tax Reduction – If you’re considering incorporating a company offshore through which you can trade, transact and conduct business, it is possible to select a jurisdiction through which you can trade but within which you have no corporate taxation liability at all.

Conduct Business - an offshore company is a legal entity which has many of the same intrinsic rights as an individual person so it can allow you to trade and invest through it.

Maintain Confidentiality - many offshore jurisdictions require little or no data be held on public file relating to those involved in the offshore company or to the affairs of the company. Even where data is required, there are options to include nominee director services to protect the beneficial owner of the company

[FreedomOffshore]

Originally Posted by Doc_offshore

One of them is Seychelles. The last 10 years has been very interesting for this jurisdiction. With more than 10 double taxation agreements signed the new CSL company looks like it could be a winner. With 1,5% tax on profit and requirement to annual reports, these companies can take dividends, royalties etc. from companies in China, Thailand, South Africa and even Cyprus without being riped of by CFC, gain and withholding tax. Seychelles even have SEZ ( Special Economic zones) or Freezones where you can setup companies and do international trading without high taxation and custom.

Yes, I agree here. This is one of the domiciles that I use to set up companies in and even use to set up bank accounts in. Another one that I have recently added is New Zealand because of its low profile non-tax haven status. But I say status since it is possible to set up a tax free structure in New Zealand quite inexpensively if you have the proper connections using both a trust and a company.


FREEDOM

[Offshore]

26/02/2001 - The OECD (organization for Economic cooperarion and Development) is pleased to announce that the Seychelles has joined OECD member countries and eight other jurisdictions in giving a commitment to eliminate harmful tax practices by 31 December 2005. The OECD welcomes this commitment which is based upon its Memorandum of Understanding issued last November (see http://www.oecd.org/media/release/nw00-123a.htm).

The commitment includes undertakings in favour of transparency, non-discrimination and effective exchange of information, which are at the heart of the OECD's work on harmful tax practices. The OECD looks forward to working with the Seychelles to ensure the implementation of their commitment, and encourages other jurisdictions to come forward with similar commitments.
Tax Information Exchange Agreements (TIEAs)
OECD Member countries as well as delegates from Aruba, Bermuda, Bahrain, Cayman Islands, Cyprus, Isle of Man, Malta, Mauritius, the Netherlands Antilles, the Seychelles and San Marino.

Tax Information Exchange Agreements (TIEAs) Norway has signed agreements with:
San Marino, Cook Islands, Gibraltar, Samoa, Turks & Caicos, Anguilla, Aruba, Netherlands Antilles, British Virgin Islands, Bermuda, Cayman Islands, Guernsey, Jersey