What type of Company do I need?
It is vital to know when to use a Tax Planning Company and when to use an Offshore Company - A mistake can cost Thousands!
Tax Mitigation Jurisdictions can be divided into two distinct types ‘Tax Planning’ and Offshore Jurisdictions. The former are basically territories that benefit from double taxation treaties with other countries that can be used to reduce or defer corporate, dividend, royalty, capital gains or inheritance taxes …. Such territories are often also part of economic groupings such as the European Union, which in turn allow special treatment of tax and/or dividend/interest payments between member states. Offshore/International Business Corporation (IBC) Jurisdictions on the other hand, rarely have tax treaty benefits (or if they do they will normally be with their former colonial or supervising power) but are nearly always tax-free or require the payment of an annual exempt/franchise tax. As previously stated, tax planning jurisdictions are generally required for trading, consulting and active business activities whilst offshore/IBC jurisdictions should only be used for ‘passive’ and/or holding vehicle purposes such as asset ownership. For further clarification please contact a SCF Consultant for more information
Tax Planning Jurisdictions
Generally recommended for those actively trading
Offshore/IBC Jurisdictions
Generally recommended for holding and/or passive activities
