Russian tax authorities have already been trying to prove to domestic entrepreneurs for fifteen years, which should not work through offshore. But business persistently continues to use them. Why? We'll figure it out what offshores, what are the schemes of working with them and what to take into account to successfully use them.
The concept of "offshore" came to us from the English language. Literally offshore is translated as far from the coast, outside the country. However, despite the double "F" in the English version, in Russian it is more correct to write the word with one letter F, that is, an offshore.
First, we use offshore offshore laws (or more correctly - non-resident companies) in Russia is not prohibited. Yes, aggressive tax planning is not encouraged (i.e. when taxes are not paid at all). And the transactions with counterparties from offshore zones, of course, will attract additional attention to the tax authorities. But there is no ban on their use, of course. Moreover, in the context of regular sanctions against the largest Russian enterprises, the Government of the Russian Federation refused the idea of \u200b\u200bcompulsory "deofshorization" of the Russian economy and no longer requires the return of the business in Russian jurisdiction.
Secondly, in the old manner offshores in Russia, it is customary to call almost any foreign company. Especially if she dared to interact with the Russian, for example, within the framework of trading circuits or when paying dividends. Remember the notorious case "Mechel" and his Swiss "daughter" or, from the last, the case of the Cherkizovo group and their maternal holding Cypriot company. So, here, neither Cyprus, nor Switzerland, of course, are not offshore.
Offshores are companies from the relevant jurisdictions, where:
Among such jurisdictions can be noted, for example: Belize, Seychelles, Saint Kitts and Nevis, Marshall Islands and others.
In addition to classical offshore zones there are jurisdictions, where they should be conducted and to hand over financial statements, but there are significant tax breaks. For example, the territorial principle of taxation, when only income received within the country is subject to taxes, and all foreign incomes are exempt from taxes. Such jurisdictions are called low-level. These include: Hong Kong, Gibraltar, Singapore and others.
It was noted that low-level jurisdictions, as a rule, have agreements "On avoiding double taxation ..." with other countries. So, they are considered at least in such partner countries - not offshore. For example, Hong Kong and Singapore have relevant agreements with Russia and are not officially listed in the "bad" lists in the Russian Federation.
There is another type of jurisdictions that cannot be attributed to offshore, but in which it is quite possible to work successfully. These jurisdictions are far from zero taxes, but often, also higher than in Russia, they require the financial statements to be given, do not practice the territorial principle of taxation, but at the same time local companies have stimulated by tax benefits to specialization on specific profiles of activities. For example, in the Netherlands (income tax of up to 25%), there is an IP-Box mode, stimulating IT development and innovation, according to which the tax can be only 5%. Similar regimes exist in Luxembourg (where the basic income tax rates are under 30%, but it allows us to reduce taxes 5 times) and in the UK (income tax - 20%, and on special-time - 10%).
Such jurisdictions call offshore simply no language turns, but tax breaks there, as we see, quite significant.
Thus, using companies from very respectable jurisdictions, it is possible, on the one hand, not annoying Russian tax authorities and banks with their transactions, and on the other - to achieve the goals for tax planning transactions. That is, transactions with non-resident companies (and with offshores) in Russia - are not prohibited.
The exact cost of the offshore company depends on the jurisdiction and volume of services. But you can define the components and describe the price range. We analyzed popular jurisdictions and approximate prices. This will help calculate the budget for the creation of an offshore company.
The absolute offshore "Wolnitsa" ended back in 2015, when his own law on controlled foreign companies (KIC) appeared in Russia.
Now, about your foreign companies you need:
Despite the fact that many psychologically nothing in the FTS do not want to report, nevertheless, it cannot be said that this law killed offshore schemes. By no means! The most important component of this law - the tax, manifests itself only for "passive" companies (personal wallets), and even if the unallocated profit of such anger is more than 10 million rubles (until 2017, this benefit was 30-50 million rubles. ).
Companies engaged in "predominantly active activities", for example, trade, have exemption from tax.
We will not dive into the details of the law on KIC within this article we will not. The main thing should be understood for yourself - the Russian law of KIC does not at all put on the use of non-resident companies "Cross". With them it is quite possible to work successfully.
All solutions for working with offshores are based on the fact that the tax burden from highly small jurisdiction (for example, from Russia) is shifted to jurisdiction, where taxes are significantly lower.
Consider the most common schemes for working with non-resident companies. And let's start with the varieties of trading schemes.
The practical meaning of the above schemes in various approaches to optimize customs payments, VAT and income tax from the Russian company. In addition, under certain conditions, savings on VAT at the level of the European company can be achieved.
Similar problems within Russia will help solve the Davalic scheme.
Scheme savings of VAT and customs duties on equipment purchased for their own needs.
All of the above solutions for working with offshores are based on the fact that the tax burden from highly aluminum jurisdiction (for example, from Russia) is shifted to jurisdiction, where taxes are significantly lower. At the same time, the Russian company interacts with a foreign company from respectable jurisdiction (from the "White List"), which provides a more adequate response to what is happening from the Russian tax authorities and servicing banks.
Schemes also received widespread when foreign companies act as holding. In this case, the tasks of confidential ownership of Russian assets are solved, and the tax burden is reduced when paying management services and dividends. Or when non-resident companies attract abroad external financing or acquire trademarks and patents.
But in this case, "just the company-non-resident" can not do. It is necessary to choose jurisdiction, at a minimum, in several criteria.
There are at least 30 criteria to select proper jurisdiction for a specific tax decision. But you need to take into account at least these four:
We consciously do not stop at the study of the cost of registration and maintenance of such solutions. The thing is that the basic range of prices for the registration of companies between jurisdictions may differ at times. But it should not be paid to the cost and inclined to the cheapest or expensive options. The economic effect of tax planning will still be significantly higher than the cost of registration and maintenance of any decision. Therefore, it should be correctly assessing this particular effect, and it is precisely from what kind of jurisdiction will provide it.
All that is known to the serving bank can be known to the Russian regulatory authorities.
A competently composed tax decision - half down. The main thing is to open an account in a normal bank and quietly hold payments and work. However, there is a problem here. Classic offshore companies are becoming increasingly difficult to open a bank account. And if the account on the offshore is already open, it is not easy and saved it. Especially, all this concerns transactions by which calculations in US dollars.
Of course, banks that open accounts offshore still remained and the choice among them is still quite wide. But every year I find some adequate option becomes more difficult. Yes, and the rates for the payments of offshores significantly increased absolutely in all banks.
Therefore, if you need to be serviced in some respectable bank and do not overpay for payments, then, apparently, you should think about the registration of a non-phistical company.
Above, we have already talked about the fact that our foreign companies will have to be reported to the FTS of the Russian Federation. But not all of it would like it. Therefore, many entrepreneurs consider for themselves the option - "quietly silent." Such fans of acute sensations should be remembered that since 2018, Russian tax authorities will receive information from some of their foreign colleagues, as part of the automatic exchange of information between countries. Therefore, in order not to get into the unpleasant situation, you should clarify in advance - whether your bank (or the trust, managing, broker, etc.) will send such information to this information, which time and what time it is.
Of course, in general, the automatic exchange of information is not a sentence. And not to get under such an exchange, even on service in the "information and dangerous" bank is quite realistic. Another thing is that this should take into account a much larger number of nuances than it appears at first glance. But, basically, you should know that all that is known to the serving bank may, under certain circumstances, to be known to the Russian controlling authorities.
At the same time banks which will not participate in this exchange is still a lot. But the situation, in this regard, is quite dynamically changing. Therefore, keep track of any changes and moods in your jurisdiction - it is necessary on an ongoing basis.
If you need to be serviced in some respectable bank and do not overpay for payments, then you should think about the registration of a non-phistical company.
Tax authorities increasingly began to explore the schemes, with the participation of non-resident companies, as a result of which money is derived abroad, without paying tax at the source of payments in Russia.
On the one hand, all such schemes are based on the provisions of agreements "On avoidance ..." between Russia and other countries. And according to such provisions, taxes at the source of payment (by dividends, interest and royalties, for example), indeed, can be reduced.
On the other hand, the tax authorities questioned the possibility of using such benefits, for example, because the final owner of the "right to revenue" owner, within Sydin, is not a Cypriot company at all (for example), and some offshore. And they prove their thesis, they are very simple - banking discharge, according to which all the money through Cyprus transit goes to the title offshore.
On the one hand, with the position of tax authorities, it seems, do not argue. Bank statements - they speak for themselves. Although, there may be a temptation to open bank accounts in jurisdiction, which will not allow tax authorities such extracts to receive.
But we will go different ways.
In fact, the main meaning of this scheme is to bring money to the final beneficiary. To an individual. And the next stage, often, is the distribution of dividends from the offshore - already him. With payment of appropriate taxes.
So the tax authorities of the Cas suggest a much more profitable and riskful way of such a transit.
The Russian company, knowing, to the date of payment of income, a real beneficiary, can pay money on non-resident, holding no tax at the source of payment (within Sydn), and NDFL (once the final beneficiary and the income receiver is the tax resident of Russia).
This method not only avoids tax claims, but also to save on taxes at the source of payment (after all, in fact, the money will still go abroad).
Such an approach is one of many, allowing to work quite legitimate and not be afraid to be "caught" FTS, on the one hand, and practically not to spend time and money for the reconfiguration of current tax decisions - on the other.
So, what should be known, working with non-resident companies?
Thus, even taking into account the course on "deofshorization", work with non-resident companies and in 2019 can remain profitable and legitimate.
- Favorable economic instrument, which allows you to take advantage of the preferential system of tax payments. For businessmen, such a scheme is quite acceptable, the state is all the time fighting similar zones, trying to establish control over the operations carried out. So, what are the offshore companies and why do they all the time become the subject of constant friction between the state and business circles?
For the first time, this term appeared on the American continent in the middle of the last century. He concerned the activities of the financial organization, which was able to avoid control by the government through geographic selectivity. In other words, a commercial organization simply moved its activities to another territory offering favorable tax conditions.
Today it is safe to say that these schemes - the phenomenon is far from modern. They were used in ancient Greece, in particular, when two percent imports of imports and exports of products were introduced on the territory of Athens, the merchants began to travel around the city and trade in the nearby islands where the goods could be delivered without any duty.
In the XV century, Flanders became such a zone, which turned out to be a more favorable place for the sale of wool, which British merchants offered. In America, the Education of the Offshore began in the XVIII century, after the introduction of the England of the import tax. Since then, it has been more profitable to exercise their activities through Latin America.
Modern offshore organizations are based on a sample of the Swiss model: exchange centers were established to attract foreign capital in this country, the information secrecy system was developed; A special law was adopted, which forced banks to keep strict accounting of its customers, but forbade him to sound anyone.
Subsequently, other countries introduced similar Swiss rules and entered into a competitive struggle for foreign money. For many states, especially if we are talking about island, such a business has become the only means to replenish its treasury.
So, based on historical prerequisites, it can be concluded: an offshore organization is a foreign enterprise, which is registered in the zone with a special preferential jurisdiction, which makes it possible to place capital on more favorable terms and use them.
The basis for the emergence of such a company is the legislation of the country in which it is registered. However, that the company could fully take advantage of preferential conditions, an agreement is required between the two countries to avoid double taxation, otherwise the laws of the country in which it performs its operations will be distributed.
Today in the world there are, which allow foreign firms to conduct their business on special conditions. The activities of such enterprises are not subordinate to anyone, they have the opportunity to open any number of accounts.
Signs of offshore organizations
From the point of view of the legal, the company "Outside of the Bank" is a full-fledged independent business entity. We list the main signs, how to determine the offshore company:
To date, to open an enterprise in Offshore without disclosing the main beneficiary is impossible.
What are offshore companies
It is no secret that the choice of the opening site of such an organization is always determined by what the company will be engaged. In this regard, the following types of offshore companies can be distinguished:
- Financial companies: Banks, mediation financial firms, insurance companies.
- Trade Mediation: Import Export, Procurement, Distribution.
- Holding enterprises: are created for investing abroad. These include investment, operational-holding, companies who own vessels, real estate, intellectual property.
The schemes of using structures operating in areas with special conditions, there is quite a lot. In other words, the activities of offshore companies may be the most diverse. We only give its main directions:
- mediation in trading operations. Exporting products, an offshore company buys it at a low price, in the future selling on a more profitable end buyer and leaving all the profits;
- construction - In this scheme, Offshore acts as a contractor. The customer pays for it all services in the field of construction, the contractor concludes an agreement with the Russian company for the implementation of such works, as a result, all the profits remain on the accounts of the Offshore company;
- transport services - usually we are talking about international transport. Company-Offshore plays the role of the carrier.
- the provision of services - it is often about providing assistance to residents. This scheme is the most popular in business circles. Here, however, it is necessary to be good to be familiar with the law on income tax, especially with the part that we are talking about the cost.
What rights can offshore companies
The legal status of offshore companies is determined by the legislation of each state individually. It should be noted that the core of the preferential regime of most zones is simplified taxation, especially when the question concerns income taxes.
Another advantage that companies are located in such jurisdictions are the lack of restrictions on the local authorities for currency operations, the so-called currency autonomy. Such a company has the right to completely freely dispose of its and foreign ones. In addition, no one forbids them to independently form their authorized capital in any currency.
The following privilege, which is provided to enterprises in the offshore, are complete confidentiality of information. In some zones, disclosure of information about owners and shareholders even entails criminal liability.
Privacy is usually provided by the organization of the Institute of Nominal Owners and Directors, which are only conditionally in their positions, and most of operations are carried out through the so-called secretarial companies. Moreover, in some jurisdictions, the presence of such an office, as well as two resident directors, is enshrined at the legislative level.
Thus, opening a business in a zone with a special legal and tax status, it is necessary first of all to carefully examine exactly which rights are provided by local authorities.
Classic Offshore Companies: Video
What is an offshore and is it possible to explain this concept by a simple language? Of course! Around Offshore, offshore accounts and companies too many rumors, speculations and frank propaganda. That is why today we will define for you the concept of "offshore" on the shelves. We will talk in a simple language about what is an offshore and why they are needed, which means to bring money to Offshore, why are offshore accounts and companies need.
Below is a list of topics we affect within this article. You can immediately go to the section that interests you or explore the topic consistently and thoroughly. After reading the entire text, you will already clearly understand what is an offshore and do not give yourself to delusion.
The concept of offshore is multi-valued. This is due to the fact that this name is given to two things.
The first of these is countries and jurisdictions. They are often mentioned in the context of the "black list of offshore FNS" or as countries with a favorable tax regime. In fact, the main reason for close attention to the offshores is that they are on a legal basis offering certain tax benefits to business and individuals.
If you register a company in classical offshore jurisdiction (Nevis, BVA), then all income received by the company is not subject to corporate tax.
Something similar to the offshores and so-called Middlers, for example, Singapore or Hong Kong, with the territorial principle of taxation: under certain conditions, you may not pay corporate income tax if the income is obtained outside the country. On this basis of territorial taxation Panama Also most likely Midshor than the classic offshore.
In the offshore, legislation regulating the business of the business is on average and more easily more than in other countries. This is one of the reasons why international business offshores actively uses: reporting and accounting is much simpler than in developed countries.
At the same time, we immediately note that despite the established myth on the lack of claims for accounting, in offshore zones or tax harbors, as they are sometimes called, it is necessary to conduct reporting necessarily. It is not always required to give it to check or passes an audit, but reporting should be.
The second thing is called offshores, as you have already guessed - this is directly the company that is registered with the offshore zone. Offshore company is a company that has been established and works according to the rules and laws of classical offshore jurisdiction. In most cases, such companies are forbidden to lead their activities on the territory of the jurisdiction itself - only beyond its limits.
Before continuing to disassemble what is an offshore, it is necessary to make an important remark. The fact is that due to the process called "deofshorization", i.e. The fight against the offshores, as well as the worldwide hunt for taxes of residents of developed and developing countries (within the framework of various initiatives), the concept of offshore becomes more political, emotional and propaganda, rather than a specific definition.
The fact is that in almost any country, including large and developed, there are laws that allow foreign investors and entrepreneurs to receive tax and business benefits. Singapore is not considered an offshore is a midshore. Normal high-neural jurisdiction, which offers opportunities for international business on certain conditions.
US even after tax reform is not the most favorable in terms of widespread control and regulation. However, international investors receive the possibility of both tax savings, and that becomes a big rarity, some of the proliferation of anonymity for their investments. The United States is almost not exchanged with information with other states, so you find out how much and what I have invested is problematic.
At the same time, those countries that are considered classical offshores offer a zero or close to that taxation, worked without the registers of the beneficiaries (true owners) or closed registers, are now forced to carry out the harsh requirements of international legislation. Including large countries require offshore providing data on depositors of offshore banks as part of automatic exchange (or on the basis of bilateral agreements); beneficiaries of companies, etc.
Not all offshore agreed to such conditions, but in general, today we can say that there are practically no clear offshore and clean non-offshores in the world (onshor). The media often flashes the plots about the next offshore, which is not in fact.
Therefore, nominally offshore with an equal degree of probability can be recognized by the United States and Nevis or any foreign jurisdiction and the company.
The next most important question that arises about the offshore - why are they needed? If you believe the media and politicians, the only purpose of using offshore is to evade tax evasion and laundering of criminally acquired income.
Likewise, this is very far from the truth. Offshore is a tool that solves various tasks. Like any tool, it can be used within the law, but some decide to use offshore outside the legality. The first is permissible, reasonably and promising, which is proved by leaks of confidential data: paradise papers, which recently made noise, showed that almost all users of the offshore industry, including the Queen UK , Bono and Madonna, act strictly within the framework of the existing law.
The illegal use of offshore is punishable. The hunt for such violators has recently increased. The Tax Services of the World Actively cooperate between themselves and help find those who are hidden from justice and evade tax payments.
Therefore, when we are talking about the use of offshores, we are talking strictly about legitimate practices that help in business optimization, in increasing business stability and in the protection of assets.
What is offshore and why are they needed? Here is a small list of possible applications of offshore companies:
Offshore needs to work more efficiently and safer. In Russia, the most common cause of the use of offshores is called the fear of losing business in the country. The Russian company is sold by an offshore company and thus take it to it becomes more difficult.
Not to mention the fact that not all foreign partners are ready to work directly with Russian companies, especially after the imposition of sanctions. The mediator in the form of an offshore company makes it possible to increase the chance for successful cooperation, investment, the creation of new innovative products.
As you can see, the list of ways to use offshore is quite wide. Interest in them is first of all prudent businessmen, not criminals, as they want to show power and media.
Another important topic that always follows next to the question "What is an offshore" and which we are trying to reveal in simple language: what does it mean to withdraw money in the offshore? Given everything above, you can already make your own conclusions.
The first one is to bring assets under the Office of the Offshore Company. Such a way to the offshore share companies (sell their offshore company), real estate and movable property (write a house or yacht on the company on Bermuda), send money.
The last paragraph means that the company also has a bank account on which you can send money. The same account may be not only corporate, but also personal. In this context, to bring money to Offshore can mean transferring funds to an offshore or foreign bank.
By the way, a foreign account is one of the very first tools that you should get to protect your assets. Think about what is happening in Russia with the banking sector: banks respond to licenses, contributors are cheating, the authorities pay insurance money in rubles, even if the contribution was in dollars or euros.
Plus add sanctions, attempts to save the budget at the expense of depositors and the slowdown in the economy - it turns out a yellow picture that is able to damage your budget.
That is why the opening of a foreign or offshore account is a reasonable step to protect assets. It will be needed not only for personal purposes, but also for an offshore company. We offer readers of the portal free consultation on the selection of a bank account, both for personal and corporate goals. Write about your desire to open an account to the address [Email Protected] And in the near future, get answers to such questions as: Where to open an account? In which bank? How fast opens the score? What an account is needed for my company?
When we talk about the practical application of offshore, in most cases we speak about the use of offshore companies. "Register an offshore" by a simple language means "register a company in offshore / foreign jurisdiction."
We recommend paying attention to the following offshore countries to register our offshore: Belize and Nevis. What is the peculiarity of these states?
They offer high standards for the protection of assets and information about the owners; flexible and thoughtful legislation; Nevis and Belize offer a corporate tax of 0%; Data on the company is not public; Only allegations of local courts are accepted.
In order to register an offshore, you need to perform several steps:
Finally, we want to draw your attention to a few moments that you need to know every future offshore owner. It is important to understand to defend your own interests and at the same time not to violate the current legislation:
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Hello! The word "Offshore" heard, probably, every person. But many have no idea what it really is. Therefore, today we decided to tell ordinary people, which hides under this concept who enjoys offshore accounts and how our state belongs to this.
The budget of each country is formed in different ways. Countries with a rich industry fill the treasury with the help of tax deductions of large enterprises, the states with advanced tourism function at the expense of the deductions of the tourist sphere. But some countries survive at the expense of foreign entrepreneurs. We are talking about offshores.
Offshore. - This is a financial zone, where residents (citizens of another country) register on preferential terms.
Simply speaking, offshore is an activity that is only registered by a foreigner in a specific country. In fact, the entrepreneur works on the territory of his country.
Certain countries are allowed in their country on preferential terms in terms of paying taxes and anonymity of the founders. Thanks to this, the owners who create offshore companies legally evade payment of large taxes, and countries with an offshore zone replenish the budget due to minimal taxes.
In order for it more clearly, why do it all and how the offshore works, consider the following example:
The owner of a large business, which is registered in the Russian Federation, is obliged to pay a total of 15% of its income monthly. In the event that it will make his company offshore, it will pay a 5% country where it is registered (for example, Panama). In fact, he worked, so it will work on the expanses of our Motherland, but according to the documents, his company will be foreign. Tax numbers are given approximate.
This is done in order to increase profits by reducing tax deductions. If we consider our example, then the net income of the businessman will increase by 10%.
If the concept "company" To interpret from international law is a subject that pays taxes in the country where the company is registered.
It is also beneficial for a number of countries, and especially for island states where there is no developed industry. It is at the expense of offshore firms that their budget is filled.
According to the calculations of financial experts, 10% of all funds of our planet are located in offshore companies.
Due to the low tax rates, more and more people translate their companies in the offshore. It is there that it is minimal or absent at all.
Most often, the tax is a fixed rate that does not depend on the income of the enterprise.
In such a combination, everyone is satisfied, except for the state in which the owner of the company works. After all, the budget is inconsistent with quite large amounts of money. Some financial experts blame in the global crisis precisely offshore companies, because Going destabilization of the economy.
Offshore zones are not only in island states. Register Offshore and to enjoy preferential taxation in developed countries, such as the United States, United Kingdom, Switzerland, etc.
But it is worth remembering that the conditions for the registration and functioning of such a business are very different from each other. For example, there are no taxes on the islands at all and it is not necessary to provide reporting. In developed countries, conditions are not so attractive, the authorities of the Offshore companies are intently observed. But at the same time, the risk to remain with nothing and losing the company is lower than in low reputation countries.
Depending on the conditions of the functioning of such enterprises, offshore zones are divided into 3 categories:
Thus, the offshore white list zones are more reliable, but their conditions are less attractive. And the blacklist zones are more risky, but profitable.
Choose offshore zone is quite difficult. Here it is necessary to proceed from the specifics of the company and the kind of activity.
If you are planning buy property , it is better to choose that country where information about the property owner, for example, Seychelles are not disclosed.
If you need hide investment related activities Then it is rational to create an offshore network, and all assets are distributed to various companies with a confusing control system.
If necessary, reduce the values \u200b\u200bof taxes related to export and import , then it is better to choose a zone where there is no double taxation (for example, Cyprus).
If necessary bring a large amount abroad , Then the choice of zone should depend on the legality of receiving money.
The offshores enjoy a large number of businessmen. Based on their preferences, we made up the top 5 most popular offshore zones:
All these offshore zones have their advantages and disadvantages, so it is impossible to unambiguously say which country is better.
Companies with different activities use various offshore schemes. Now we will look at the main.
Its meaning is as follows. Suppose there is an exporter that sells goods and importer that buys it. In order to reduce the amount of taxes, the exporter sells the entire volume of products to a third party (offshore firm), and that in turn transmits it to the importer. Thus, the exporter can significantly increase its income due to minimum taxes.
For example, the supplier sold the goods offshore company for 200 thousand rubles, although the cost of the entire party is 1 million rubles. In this case, he will pay the tax from 200 thousand, and the rest of the amount will receive when the offshore company will give the goods to the importer. That is, the tax is not subject to the whole part of the amount, but only its fifth part.
A company opens, which officially hire a company in a country with an unfavorable tax climate. In this case, the company hired will pay only hiring services, and this is 1-2% of the cost of goods and services.
In Offshore, a company is registered, which will be a contractor. In fact, this company will not produce any construction work. It will make a company that will really do all the work. At the same time, all purchases, payment of services, etc. will be held through an offshore organization.
Offshore organization pays for raw materials, materials and production of goods. After that, she hires an intermediary for a certain fee, which sells products. All profits goes to Offshore.
A offshore company opens, which creates and registers a trademark in a country where the activity really happens. After that, a license for the use of such a sign and the company offshore receives royalty.
In offshores, you can not only register your business. This is a great place to store your savings.
Account in Offshore - This is an account at the resident of another country.
In order for everyone to understand the meaning of this definition, we give an example: a citizen of Russia invests in the Swiss bank. This account will be considered offshore.
Offshore banks do not work with the local population. They do not distribute information about their depositors, even at the request of legal and judicial authorities.
Most often, the money in the offshore is derived by people who want to hide their income (for example, deputies). Offshore accounts are not recorded in tax declarations, respectively, the amount of tax deductions is reduced. In this case, the conduct of auditing reporting is simplified, and the account can be controlled from any point of the ground.
The conditions for opening accounts in the offshore in each state are different. Somewhere they require the personal presence of the depositor, in some banks you can send an authorized representative, and some of the financial organizations themselves send their employees to depositors.
When opening an account, it will be necessary to pay the cost of the account opening service and produce all the necessary payments.
The choice of the bank and the offshore zone should be approached with a special responsibility, because You can lose your blood earned money.
Register a business in the offshore zone in two ways:
Open the company in the offshore can not leaving the territory of its country. But in this case, you will have to charge the design of some documents to other persons, and this is a certain risk.
In addition to registration, you can buy a finished company in any offshore zone. Such services provide specialized companies.
To date, the offshore is very popular. Firms in the offshore open owners of large and medium-sized businesses, because It is for them that it is most profitable. Positive qualities for each side are more than negative.
The advantages of companies in the offshore:
Disadvantages of offshore companies:
The offshore zone is a financial zone, with favorable tax conditions.Where attract foreign capital. To bring companies and savings is beneficial to business owners and the offshore states themselves.
But the economy of countries that are not allowed to tax, it is very suffering from this. The outflow of money will be observed until equal tax conditions in all countries. And this is unlikely.
Offshore (offshore) is a legal way to increase the profitability of your business. What it is, how to work according to such a scheme and why it is profitable - further in the article.
The essence of terms in their name. Translated from the English Offshore (unlike onshore), the company "is not on the shore" - is outside the jurisdiction of a particular country, and therefore is not reported to the controlling bodies of this country.
The first offshores appeared in ancient Greece. Then the Phoenic merchants began to trade in the neighboring islands, so as not to pay the trading fees to Athens. The current name appeared in the USA 50s. At that time, several American companies transferred their assets to island states, where there were more favorable business conditions.
Offshore is a company that is registered with the offshore zone in order to pay the minimum amount of taxes (especially income tax) and concealing information about the true founders and shareholders of the company.
The offshore zone (jurisdiction) is a certain country or territory where special conditions for registration and work are operating for companies that are not residents of this country.
Do not confuse jurisdiction with free economic zones (abbreviated FEZ). If a zero tax rate acts in the offshore zone, then the payment of taxes occurs in a preferential rate. The company operating in the FEZ is obliged to disclose all the information about its founders and shareholders, regularly submit full financial reports.
In different countries, business conditions may differ, but the benefits are available for jurisdictions:
The disadvantages of the offshore are due to the rules of international financial institutions (such as the IMF) on the disclosure of financial information, as well as the stability of the political situation in a specific state.
The list of jurisdictions - countries and regions with special economic preferences is drawn up by the federal tax service and is constantly updated. As of 2017, this list includes the following countries and special areas:
The main objective of the offshore is maintaining economic activity in regions with lower tax pressure on business. Many states (including the Russian Federation) have signed bilateral agreements on the avoidance of dual taxation. If the company is registered in one state, and income gets in another, then it can choose where most taxes pay: in jurisdiction or in Russia (country of their registration).
These agreements are most beneficial in obtaining income from residents of the countries. For example, bank interest and transfers of the resident of Cyprus are exempt from taxes in the territory of the Russian Federation.
Export-import operations are becoming more profitable if using an intermediary in the offshore zone. The organization receives income in another state, and therefore financial flows are not taxed.
Trust funds derive funds received from investing in jurisdiction not to pay income tax. Thanks to this, customers and management of the funds are locked up a good condition.
With the help of offshore, you can legalize the money obtained by a dishonest way, because jurisdiction guarantees complete anonymity and confidentiality. Even with a court decision on providing access to financial documents, the process of disclosing financial information will be delayed in time, which allows you to hide most of the cash flows.
Before starting work in jurisdiction, it is necessary to carefully read the legislative characteristics of the country, its political stability and position in international ratings of economic freedom. And also evaluate the cost of business service.
Here is a list of basic tips
There are many schemes for jurisdictions. Which of them choose and how to combine - to solve you. The most popular will be discussed.
Offshor performs an intermediary between the manufacturer (supplier) and the end buyer. The exporter at the low price sells the goods offshore company in which the profit is accumulated. And our mediator sells goods to the final buyer at a market price.
With the second embodiment, the importer underestimates the price to reduce the customs collection and VAT. Here you need to choose the price correctly so that the case of the income tax increases.
The organization provides the service to the resident. Money is transferred to the account of the offshore, and costs are accounted for at cost. According to this scheme, income tax is legally understood due to an increase in production costs.
The Bank may provide loans for prepayment under foreign economic activity (VED) agreements. The funds obtained are settled in an offshore bank. After 180 days, the money returns the bank, issued a loan, due to the non-fulfillment by the enterprise-non-resident contract. At the same time, credit funds make a profit, which is not taxed in jurisdiction.
It is easier to do it through a mediator company. Such firms for you will prepare a package of documents, will hold the necessary negotiations and will give you a ready-made contract for banking services, an account number and password to it. But you can contact the bank directly by preparing the following package of documents:
Buy an already registered company is very simple - it is enough to contact a reliable mediator company who will select the perfect option for your needs. Choosing a company Pay attention to the reputation of the company and customer reviews.
Most firms offer the following package of services:
To do this, contact the consulate or authorized body of the chosen state to clarify all the nuances of the opening of the company. In most countries, registration occurs at the same procedure and includes:
Possible remote submission of documents. Often, only copies of the passport are enough to register.
In Russia, there is a so-called "Black List of Offshore, compiled by the Ministry of Finance and the Central Bank of the country. It includes countries, the registration of companies in which falls under special control by the state. Such companies "threaten" an increase in the tax base, the requirements for disclosing information about partners, and close attention from the competent authorities.
Offshore is a powerful tool in the hands of an entrepreneur. You just need to be able to use it. Conducting business in the offshore zone allows you to significantly save on the company's maintenance and successfully conduct business in low taxes. With all the shortcomings associated with reputational risks and the possible arrest of accounts, the offshores around the world continue to work and make profit of their owners.
Such a scheme allows you to achieve almost complete privacy. The main thing is to choose the right jurisdiction and the company to open or buy a company, which instead will hold the company registration and will open a bank account in accordance with your wishes and laws of a particular country.
What is offshore - on video
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