Fact: Offshore Companies are Legitimate, Popular and an Effective Means of Tax Planning.
If you’ve never dealt with an offshore company and somebody told you they were using one to save on taxes, what would be your first thought? Wouldn’t you wonder if that person was doing something illegal?
It’s true, offshore companies have a doubtful reputation on the international arena due to the numerous cases when people used these companies to hide their wealth while concealing their identity.
Despite that, offshore companies ARE very legitimate and effective means of lowering tax payments and securing one’s assets. At the moment, there are over 60 countries that in one or another way offer tax breaks to its tax residents – companies registered in that country, but doing business outside of it.
In Cyprus, for example, the corporate tax is only 10%. So, when Cyprus company carries out trading activities with a country, with which there is a double tax treaty agreement, the profits are taxed at 10% versus 15/20/15% of the other country. It allows for significant savings on taxes.
Additionally, offshore companies GREATLY CONTRIBUTE to global economies. According to various statistics, 35-50% of the worldwide money turnover goes through companies registered in offshore zones and close to 60% of the global monetary supply is held in the offshore companies accounts.
So, you CAN play by the rules and still majorly and legally save on taxes.
The question is not IF your business benefit from an offshore company, but what structure to use.
Get in touch with us, and we’ll talk about.