Low Tax Jurisdictions
Play the game! But respect the rules!
International tax planning is about using the possibilities offered by countries (commonly known as jurisdictions), whose legislation allows for certain advantages (tax, confidentiality, company structure, etc.) to be used by non-residents or residents.
Some countries still offer so-called ‘international business companies’. What is this? This means that a country, or jurisdiction, will allow registration of a company and offer them certain tax freedoms in exchange for an annual license fee. It is normally a legal requirement that the registered company must not conduct any business or own any assets in the jurisdiction of incorporation. So these are the so-called ‘offshore jurisdictions’
This, in turn, allows companies to be set up in that jurisdiction, sometimes resident, sometimes not (depending on the legislation), to trade on an international basis taking advantage of the easier flow of money on the international markets. These jurisdictions often allow another company to be appointed as the Director and Shareholder of a company. Most countries today still partake in the idea that the flow of money in or out of the country has to be restricted, regulated, or at least monitored, and of course, taxed.
But in 2019 we think it is smarter to choose for an ‘onshore low tax jurisdiction’. This means you as a foreigner will just set up a company in the country, like the locals, but the country just has low tax rates! For example Bulgaria, Macedonia, Hungary, Hong Kong… So if you start their a real company, you are not doing anything illegal but you just pay fewer taxes. In other words, you are a smart entrepreneur!
Is this legal?
Of course, there is nothing illegal buy choosing the country where you pay low taxes. It’s also not illegal to pick out the sexiest girl at a party or the most handsome man. You need only to structure everything in a decent way, that the country where you live get still the taxes it is entitled to and that you pay the correct taxes in your ‘new’ low tax jurisdiction. You just play the game! But respect the rules!
Is international tax planning only for the rich?
This might have been so a long time ago. However, in this modern age with the high quality of services offered by De Hoon & Partners. Everyone has the right to minimize his taxes! We will be very happy to send you a transparent and affordable offer. We also do not like posh and expensive lawyers. We also want to earn money but we will not steal, we will make you a fair deal!
Where do I start?
Start with a Business Plan and a budget. Do you want to set up a small trading company, or an international empire? Do you want to sell your product on the internet? Decide on your target market and the types of currencies you want to accept. You may first wish to set up a Virtual Office to test the market with your product. Make up your mind! And drop us then a mail at : firstname.lastname@example.org. We will be very happy to help you! We will not bill you if you ask us information😊 Do not hesitate to contact us. Contact us now!
Can I move my existing business abroad?
Some companies move parts of their business offshore almost immediately as separate subsidiaries and profit centres. However, you will need to look at your business with a view to re-structure your activities and maybe look for new business opportunities on a cross-border basis into other countries. The possibilities are quite extensive, and we are able to assist you when it comes to applying offshore advantages to your existing company operations.
How do I find the right jurisdiction?
This depends on what the corporation is going to be used for and your own personal or business circumstances. If you don’t have a personal preference or a recommendation from a friend, please ask our experienced advisors for suitable suggestions. They will be able to help you make the right decision to match your budget and personal requirements. Alternatively, please feel free to use our Jurisdictions section for further information.
Some important factors to consider when choosing a suitable jurisdiction: Incorporation & annual maintenance costs, the tax regime, legal system, confidentiality, exchange controls, banking facilities and the political and economic stability.