Taxes for running a company offshore

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peterpenzov

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Sep 25, 2023
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Hello,
I interested to open a company with a bank account in one of the following jurisdictions:

These countries don't charge corporations any tax at all. But maybe there are operational costs for running company offshore with bank account? For example monthly tax for bank account, accountant and atc.
Can you guide me what taxes should I expect?
 
peterpenzov said:
peterpenzov said:
Can you guide me what taxes should I expect?
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The math is easy. 0% corporate tax there plus corporate tax where you live.

Let's say you live in Australia for example. You form a company in Anguilla. The company earns 100,000 USD profits. You pay 0% tax in Anguilla and ”” because the company is tax resident in Australia ”” you pay 25% corporate tax in Australia.

That is unless you build a genuine substance in Anguilla and structure it so that you're just a passive shareholder. In that case, any profits paid to you as dividends would be subject to however dividends are taxed in Australia (substitute Australia with your actual place of residence).

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This is the probably the answer to your question.
 
Sols said:
Sols said:
The math is easy. 0% corporate tax there plus corporate tax where you live.

Let's say you live in Australia for example. You form a company in Anguilla. The company earns 100,000 USD profits. You pay 0% tax in Anguilla and ”” because the company is tax resident in Australia ”” you pay 25% corporate tax in Australia.

That is unless you build a genuine substance in Anguilla and structure it so that you're just a passive shareholder. In that case, any profits paid to you as dividends would be subject to however dividends are taxed in Australia (substitute Australia with your actual place of residence).
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Let's say in my case I want to sell goods using online shop in Australia. I'm not going to have a physical business outside for example Anguilla. Do I have to pay taxes in Australia?
 
You need to rent a office and find staff if you don't have it you will find yourself in troubles really fast.

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peterpenzov said:
peterpenzov said:
Then what is the benefit of owning offshore company? Hiding the ownership?
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Almost no benefit in these kind of cases. It's been pointless for years. The offshore financial services industry is shrinking and changing.

Hiding ownership from public view is one benefit, but your government can usually still find out who's behind the company (TIEA, CRS/AEOI). And having an offshore company makes banking and payment processing many, many times more difficult than just operating a regular, local company.

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This is the probably the answer to your question.
 
peterpenzov said:
peterpenzov said:
Then what is the benefit of owning offshore company?
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Welcome to 2023 and your 20 years too late to the offshore game. There are only very limited situations now where a zero tax offshore company makes sense in 2023. You need to look at full picture which may include changing residency to obtain its benefits.

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