Gibraltar vs BVI
- Thread starter Roo
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I once sent you the link in the old thread where you were angry at me and refusing to call Sovereign. Maybe this one
https://www.iras.gov.sg/taxes/corpo...ions-for-companies/taxable-non-taxable-income
Just open it. You need a US bank account. And an ITIN. There is a discussion on this in the other forum.
https://www.iras.gov.sg/taxes/corpo...ions-for-companies/taxable-non-taxable-income
Just open it. You need a US bank account. And an ITIN. There is a discussion on this in the other forum.
You may want to read the long conversation I had with xshore
https://www.offshorecorptalk.com/th...ture-for-offshore-taxation.43973/#post-290227
There I posted even the law to provide a clear answer. Foreign income is tax free if not remitted. Just be sure not to believe that a local guy there can do consulting for a US client as this is not foreign income but local income.
https://sso.agc.gov.sg/Act/ITA1947?ProvIds=P13-#pr10-
10.,(1) Income tax is, subject to the provisions of this Act, payable at the rate or rates specified hereinafter for each year of assessment upon the income of any person accruing in or derived from Singapore or received in Singapore from outside Singapore in respect of ,
(25) To avoid doubt, it is declared that the amounts described in the︀ following paragraphs are income received in Singapore from outside Singapore whether or not the source︁ from which the income is derived has ceased:
(a)any amount from any income derived from︂ outside Singapore which is remitted to, transmitted or brought into, Singapore;
(b)any amount from any︃ income derived from outside Singapore which is applied in or towards satisfaction of any debt︄ incurred in respect of a trade or business carried on in Singapore; and
(c)any amount︅ from any income derived from outside Singapore which is applied to purchase any movable property︆ which is brought into Singapore.
https://www.offshorecorptalk.com/th...ture-for-offshore-taxation.43973/#post-290227
There I posted even the law to provide a clear answer. Foreign income is tax free if not remitted. Just be sure not to believe that a local guy there can do consulting for a US client as this is not foreign income but local income.
https://sso.agc.gov.sg/Act/ITA1947?ProvIds=P13-#pr10-
10.,(1) Income tax is, subject to the provisions of this Act, payable at the rate or rates specified hereinafter for each year of assessment upon the income of any person accruing in or derived from Singapore or received in Singapore from outside Singapore in respect of ,
(25) To avoid doubt, it is declared that the amounts described in the︀ following paragraphs are income received in Singapore from outside Singapore whether or not the source︁ from which the income is derived has ceased:
(a)any amount from any income derived from︂ outside Singapore which is remitted to, transmitted or brought into, Singapore;
(b)any amount from any︃ income derived from outside Singapore which is applied in or towards satisfaction of any debt︄ incurred in respect of a trade or business carried on in Singapore; and
(c)any amount︅ from any income derived from outside Singapore which is applied to purchase any movable property︆ which is brought into Singapore.
I just read the discussion but I see PE/office/branch outside of Singapore was mentioned so how would that apply in practice without incorporating one more company? Could rather just incorporate US LLC or BVI company (with know disadvantages) which are cheaper to maintain and zero tax I assume.
I think the rule I mentioned was that if you do services and have a PE in Singapore, you need a PE outside Singapore to be tax free. The does not apply to products and not when the is no PE in Singapore.
Sorry for some delay, I was a little bit busy... I see that the debate has evolved significantly – and interestingly, in the meantime.
Seems OK.
Well...
Honestly, I do not consider myself being extremely knowledgeable re: company incorporation (re: banking I'm better oriented).
But from what I heard and/or witnessed:
1) US LLC in a state with zero state tax (NM, WY, NV, DE ...) is really not a︀ bad option; although it's maybe less powerful as SG company (see debate above), the issues︁ are quite simple and banking is well manageable.
2) Channel Islands are not so frequently︂ used but I consider it as an alternative really worth checking.
3) Inside EU there︃ are also some options that are used, as Estonia, Polish special IT regime or Romania,︄ possibly somehow combined with Cyprus or Malta non-dom. Not zero tax in all cases but︅ there are another pros, like quite easy banking etc.
EDIT:
4) I forgot about Bahrein.︆ I heard that some use it, too.
Payoneer in unnecessarilly expensive IMO. Airwallex is OK but for a BVI company, my︉ clear first option would be Statrys.
Well, in some jurisdictions it is not welcome to pay company expenses by a private card︍ (and then reimburse) regularly, it should be just exceptional, they say. Nevertheless I do not︎ know how it is with BVI re:this.
Generally, I understand your position.
Be advised that if you bank in an AEOI/CRS country and your residence is also in an AEOI/CRS country, your taxmen can be aware of your assets in any case. EMIs are mostly not reporting now (regardless of whether it is a company account or a private one) but it will change in the near future, e.g. in EU from 2025 (IIRC) all accounts︀ with average 3 months balance over 10,000 will be reported.
🙂 Well, I bet you that it will work until it stops 😉
Seems OK.
Well...
Honestly, I do not consider myself being extremely knowledgeable re: company incorporation (re: banking I'm better oriented).
But from what I heard and/or witnessed:
1) US LLC in a state with zero state tax (NM, WY, NV, DE ...) is really not a︀ bad option; although it's maybe less powerful as SG company (see debate above), the issues︁ are quite simple and banking is well manageable.
2) Channel Islands are not so frequently︂ used but I consider it as an alternative really worth checking.
3) Inside EU there︃ are also some options that are used, as Estonia, Polish special IT regime or Romania,︄ possibly somehow combined with Cyprus or Malta non-dom. Not zero tax in all cases but︅ there are another pros, like quite easy banking etc.
EDIT:
4) I forgot about Bahrein.︆ I heard that some use it, too.
Payoneer in unnecessarilly expensive IMO. Airwallex is OK but for a BVI company, my︉ clear first option would be Statrys.
Well, in some jurisdictions it is not welcome to pay company expenses by a private card︍ (and then reimburse) regularly, it should be just exceptional, they say. Nevertheless I do not︎ know how it is with BVI re:this.
Generally, I understand your position.
Be advised that if you bank in an AEOI/CRS country and your residence is also in an AEOI/CRS country, your taxmen can be aware of your assets in any case. EMIs are mostly not reporting now (regardless of whether it is a company account or a private one) but it will change in the near future, e.g. in EU from 2025 (IIRC) all accounts︀ with average 3 months balance over 10,000 will be reported.
🙂 Well, I bet you that it will work until it stops 😉
A PE/branch is not a separate company, it is just like an "office" in another country.
Registering a PE or branch typically requires rather little paperwork - but revenue that is attributable to that PE would be taxable in the other country like a local company.
Registering a PE or branch typically requires rather little paperwork - but revenue that is attributable to that PE would be taxable in the other country like a local company.
Yes, that is also one of the use cases of the Singapore company. You register it as a PE in let's say Hong Kong. You still pay tax and all as a local company, but don't have to do audit in Hong Kong. Once you move to Bahrain, you close the PE in Hong︀ Kong and register it in Bahrain. It gives you more freedom as you can keep︁ the company. That's where Singapore comes handy as let's say a German company will challenge︂ on every move and try to get some exit or whatever taxes. In Singapore, there︃ won't be discussions as it is tax free from start.
Yes. If you live in HK, you have to pay tax in HK like local companies at normal rates. You can only chose whether to pay it for Singapore or Hong Kong company. The rates are same, you may save 10,000 HKD on the audit.
Hi all, I want to incorporate a company in Gibraltar to receive royalty income.
However, is it true that although income from outside of Gibraltar is untaxed, royalties will be regardless of where they come from?
What if I do not remit them to Gibraltar, are they then untaxed under the company?
However, is it true that although income from outside of Gibraltar is untaxed, royalties will be regardless of where they come from?
What if I do not remit them to Gibraltar, are they then untaxed under the company?
You will need to apply for tax exempt status and you cannot have local income. Also, the company cannot be managed from Gibraltar.
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