How to reduce taxes legally ?

[JohnK]

I need to know how it is possible to reduce tax using a offshore company?

When looking at the large fortune 500 corporations in the world they all operate their companies from jurisdictions that are considered offshore! but they don't get cough??

 

[negon]

They have some really good CPA's and Lawyers by hand! That make them able to‌ navigate through this nightmare with ease. For the small guy there are only two option.‍
a) you pay the tax that you are obligated to pay
b) you try to⁠ cover your back as per the best of your knowledge. For instant a total anonymous⁤ offshore corp. can help you do that. I know some may scream up are you⁣ insane and blah blah blah.. I say as long as we speak small amounts there⁢ is nothing to be afraid of.

 

[Flycatcher]

c) Immigrate to another country with no or at least territorial taxation, such as Monaco,‌ Hong Kong, several Caribbean and Pacific nations.
d) Become a permanent traveler and switch countries‍ regularly, making sure that you do not personally become a tax resident in any of⁠ those countries. The time to become a tax resident varies, but in many countries it⁤ is 183 days.
e) Structure your company's tax residency to be in a country with⁣ no taxation. Search around for "company tax residency" to understand how this works. Companies are⁢ often taxed "from their location of central management". If you have an online business, make︀ sure you are reasonably private to convince your current country's local tax authorities that the︁ management is done elsewhere. However this can be really hard to do if you solely︂ operate the company, at which point I understand why @auric says that good accountants and︃ lawyers become required.

 

[Volex]

What do you mean︀ with small amounts? How much is it?

 

[Talyn]

Good luck to prove that the management︄ of a sole trader company (I mean 1 shareholder, 1 director) is effectively done elsewhere,︅ it requires a top notch tax lawyer who has balls of steel to deal with︆ the tax office.
I don't know here comes from OP, but a tax investigation in︇ some western countries, if you're alone, they'll flip you, shave you and make you pay.︈ Better to go with a lawyer or at least your accountant.

f) the good old︉ style find a friend who do no profit and therefore pay no tax, he issue︊ an invoice for consulting or whatever non tangible services, you pay him, he gives you︋ back 90% in cash... People do that since taxes exist.
g) live in a country︌ A - open an electronic bank account wordlcore/leupay/etc with an address in country A -︍ leave country A - be a tax resident of a country B - time to︎ time agree with one of your client to pay you on the worldcore/leupay without taxes️ - pray hard that even there is an automatic exchange of info with country A,‌ country B will not be informed.

Or pay your taxes and sleep well, shaved as‍ f**k, but you'll sleep better.