Company in Switzerland, owner in the States - tax inversion ?

[sriracha]

I am seeing a ton of companies in the crypto space opening up in Zug, which has favorable taxation.

The setup is such that the company is incorporated in Zug, the owners are in US/EU, the employees are scattered around the world working remotely and the customers are from anywhere.

Problem is, the owners invariably reside and work from the US or EU, nobody obviously lives in Zug, which by the way seems to be so small as to not being able to physically contain these people.

Is it not tax inversion for the owners?

 

[Sols]

It depends on how the company is structured, what tax treaties are applicable, and where exactly the owners and directors are based.

If the company has a director and one or two employees in Switzerland, that might be enough for the company to be considered Swiss under many tax treaties.

Switzerland isn't usually considered a corporate tax haven. It doesn't raise any flags for corporate tax evasion, the same way for example Seychelles and Belize do. Many tax authorities probably wouldn't question a structure involving a Swiss company and tax relief being claimed under a tax treaty.

The owners would of course have to pay tax (if applicable) on any dividends/income they receive from the company. But that's different from corporate tax residence.

Toggle signature
This is the probably the answer to your question.

 

[sriracha]

Thanks, fantastic answer.

What would be jurisdictions that would be problematic about that setup (director + employee)? I am imagining places with super aggressive tax offices like Greece.

 

[Sols]

sriracha said:
What would be jurisdictions that would be problematic about that setup (director + employee)? I am imagining places with super aggressive tax offices like Greece.
Click to expand...

There are literally millions of combinations of jurisdictions of company, holding company/companies, directors, employees, owners, and operations to be or take place in. We could sit here until the heat death of the universe going through them all.

Toggle signature
This is the probably the answer to your question.

 

[clemens]

Best would be to talk to an professional since providing more details on the public forum wouldn't be in your interest.

Toggle signature
One of my favorit articles in Mentor Group ~ Sending money anonymously archieve Financial Anonymity

 

[uplana]

You need some money to setup such a company and some of it you spend on building minimum substance for your company. There are agent's specialized in setting up such structures in Zug - I don't know about the legal part and how they respond to people from US !

Toggle signature
Find help to the ultimate anonymous setup on OffshoreCorpTalk - Tried, Tested & Works
Need help to get things done, ping me inside the Mentor Group Gold forums.

 

[sriracha]

uplana said:
You need some money to setup such a company and some of it you spend on building minimum substance for your company. There are agent's specialized in setting up such structures in Zug - I don't know about the legal part and how they respond to people from US !
Click to expand...

Being from the US would make it harder?

 

[CyprusLawyer101]

An added bonus for having a crypto company in Zug is that due to Zug being considered the crypto valley you have better chances satisfying motive tests and other anti avoidance provisions by claiming your primary purpose for incorporating in Zug as being other than reduced taxes.

Last edited: Jun 19, 2024

 

[uplana]

sriracha said:
Being from the US would make it harder?
Click to expand...

yeah with the banking, you may know that already.

@CyprusLawyer101 is Cyprus still not open for any Crypto ventures?

Toggle signature
Find help to the ultimate anonymous setup on OffshoreCorpTalk - Tried, Tested & Works
Need help to get things done, ping me inside the Mentor Group Gold forums.

 

[CyprusLawyer101]

uplana said:
yeah with the banking, you may know that already.

@CyprusLawyer101 is Cyprus still not open for any Crypto ventures?
Click to expand...

Yes it definitely is!

 

[clemens]

CyprusLawyer101 said:
Yes it definitely is!
Click to expand...

It is or it is not ? As far as I read in many of the other threads it is not yet and it will take years before they get that far?

Toggle signature
One of my favorit articles in Mentor Group ~ Sending money anonymously archieve Financial Anonymity

 

[CyprusLawyer101]

clemens said:
It is or it is not ? As far as I read in many of the other threads it is not yet and it will take years before they get that far?
Click to expand...

What is not codified is the taxation of crypto for which we have a fairly good ideq from the tax office. But you could certainly register a VASP or CASP as they are referred to in Cyprus. Banks are a bit hesistant still but you do get some which are accepting crypto related funds.

 

[daniels27]

Maybe also look at other cantons with a 15% tax rate, it may raise less questions. Also, I would recommend you to have a resident director to satisfy the rules. Many cantons won't issue advance rulings if you do not have at least a resident director capable of handling the main business (i.e. he would be able to run the business).

 

[JohnLocke]

If you can setup something similar in Cyprus as you can in Zug as a US citizen I would check out my options in Cyprus first and also the ongoing costs, they may be much cheaper in Cyprus compared to Switzerland.

Toggle signature

>> Unlock the Power of OffshoreCorpTalk: Become a Member of the Mentor Group Gold <<​

Latest Video Interviews, Offshore Company Resources, Payment Processing Tips & Tricks, Articles and Anonymity Hints only a click away!
Support the Freedom of Speech of our Community

Disclaimer: Nothing I say should be taken as tax, legal or financial advice. Anything I say is for general informational purposes only. Always seek independent professional advice.​

 

[clemens]

OP did you end up with your company in Zug? as a Us citizens you need lot's of money to satisfy the banks to take you as a business customer.

Toggle signature
One of my favorit articles in Mentor Group ~ Sending money anonymously archieve Financial Anonymity