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Offshore company and tax planning discussion

Discussion in 'Business & Tax Advice' started by domainmadness, Sep 6, 2013.

  1. domainmadness

    domainmadness Senior Member

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    I'm trying to plan my taxes better and since I come from high taxation northern Europe country, I've been looking into offshore businesses. Couple of things I would like to discuss with people in the same situation or with people who already have done all this successfully.


    1) What would be the best country to form offshore business, if we ignore small price differences and think more about legal advantages and nature of online business? Or does this even matter?


    2) Nominee shareholder(s)/director(s) - what is your opinion, is this necessary? If so, in what cases?


    3) If you already had income and local business - how did you 'transfer' your income to offshore company without making it look like tax evasion? In that case is it necessary to use nominee directors/shareholders?


    4) Maybe the biggest problem, how about personal income tax? Even if and when you get corporate tax exemption, don't have to do accounting, have bank account in Switzerland and everything sounds good - but the moment you take money for yourself from the company you are taxable in somewhere, right? US citizen are taxable from worldwide income, for me it's not like that. I don't have to pay taxes for income coming offshore, if I'm not living in my home country (Which I'm not - Thailand FTW). But I need to pay it somewhere, and it would be Thailand at the moment. And if I go back to my home country with a lot of money, there might be a problem if I can't show that I have paid taxes for that money at somewhere. So is there a legal way to handle personal income so you don't have to pay too much taxes? I really would like to find legal ways, but I'm all ears about not-so-legal ideas also.


    5) Any services you have personally dealt with who can give advice and/or handle the registration process? If self-promoting please mention that also.

    6) How about paypal? Did you have any problems opening PP account for your offshore company?
     
  2. domainmadness

    domainmadness Senior Member

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    Bump, camoon guys, need some input!
     
  3. pathart

    pathart Senior Member

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    Have you tried talking to an accountant about this?
     
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  4. domainmadness

    domainmadness Senior Member

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    I haven't found anyone who would be interested and had knowledge enough about this in my country. I have contacted many services that deal with starting offshore business, but their answers are mostly quite vague without really answering my questions.
     
  5. Loldawg

    Loldawg Newbie

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    Occupation:
    Freelancer
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    Here's a neat trick:
    If you can open a company in Serbia, as a citizen, you don't pay tax for income from abroad. Your monthly sum is calculated like this:

    Income monthly minus expenses (paychecks, place of business cost(electricity stuff like that)). What's left is profit, and you pay 15% tax for that. Your accountant can make it look like there's no profit so you won't have to pay tax. Only thing left is assign yourself a paycheck, and you're good to go. However, paychecks have tax too, and that's the only one you pay. For paycheck of 1k euros, 600e is additional tax. So for 1600 you want to take, you get 1000 clean.

    I can advise you to keep your accounts here, all banks are foreign and stable, currency doesn't touch you if you keep money in EUR and spend it with your card wherever you want. If you want to move it however, as long as sum you wanna transfer isn't higher than 10000 (10k) euros, nobody will ask you anything. If it is, you have to provide proof of origin for the money. This goes both ways, if you wanna channel funds here, and if you wanna send them abroad, however, this is PER TRANSACTION. So if you do 2x 9000, you're clear.

    There's a few more ways to dodge even that tax, but they are a bit more shady (I wouldn't want to discuss it here). Also, you get bunch of benefit for opening up a company and employing people too (used to be 2000 EUR per person you employ.. or "employ" ;))

    That's covers the basics. If you don't want to be a company, you can't have paypal in serbia, but you can have income that's not taxable. There is no tax for freelance jobs, so mop up a few contracts between you and Mr. X for doing freelance stuff (most of the time you can talk your way out of this, just say you did some consulting or w/e) and keep it below 10k. Again, for carrying money, keep it in the country where it is, take a card with you. Best way possible.

    For transfers, make a contract between your local and offshore company. Offshore provides some untracable services (Employee training, consulting stuff like that) and make the sum what you wanna transfer =) Contracts are you friends, especially if they can't be taxed, which is the case here.

    Just m 2c, if you got any questions, hit me up via skype or PM here =)
    Peace!
     
  6. JustSomeAnon

    JustSomeAnon Registered Member

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    I'm in the same position man. Getting buttraped by US taxes. Wouldn't mind paying them if they were actually being used well.....I refuse to pay for people who abuse the system. That is why i am trying to abuse it too :)
     
  7. Pvlman

    Pvlman Regular Member

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    Offshore companies are very delicate matter and you should discuss with somebody from the business and it would be advisable to meet with him in person.

    There are many places where you can have your offshore company - some are quite close to the EU such as Cyprus which will probably become under heavy EU banking scrutiny in a few years and some are so far away that you probably can't even find them on a map like Belize for instance or the Cayman Islands.

    Each offshore location has its pros and cons and as I said - you need somebody that knows his way around in this business.