What's the use of elect volunteer a 1% tax?

[rockrock]

St Vincent LLC's and others allow to opt-in for a 1% tax.

https://www.offshorecorptalk.com/th...renadines-svg-ibc-territorial-taxation.30293/
What's the use of that?

Well, you can pay a bit tax and get a tax assessment letter. Can you see scenarios where this would help compared to pointing out that such companies are tax exempt? Useful for AML elsewhere?

https://www.offshorecorptalk.com/th...-to-please-the-banks.25373/page-2#post-178387

 

[Martin Everson]

rockrock said:
St Vincent LLC's and others allow to opt-in for a 1% tax.

https://www.offshorecorptalk.com/th...renadines-svg-ibc-territorial-taxation.30293/What's the use of that?
Click to expand...

Like you mentioned the point of paying the 1% tax is to ensure your IBC gets a tax certificate. Your just basically paying for a tax certificate. Also showing your company has been subject to corporate tax may also help in certain structures and countries where untaxed income may otherwise be treated differently.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.