Lowest tax possible moving money through companies, take a look?!

[uplana]

I tried searching for a drawing or a diagram on the perfect way to move money through companies in order to ultimately pay as little tax as possible. The only thing I can find is below, where countries and methods need to be inserted. Maybe there is someone who has experience or suggestions for this?

A general conceptual overview of how multinational companies often structure their finances to optimize tax efficiency legally. This typically involves the use of holding companies, subsidiaries in different jurisdictions, and making use of legal tax incentives and treaties. Please remember, this is a simplified representation and should not be taken as financial advice.

Let's create a basic diagram:

1. Parent Company: Located in a country with favorable corporate tax rates and business environment.
2. Holding Company: Often set up in a jurisdiction with low or no taxation on dividends, capital gains, or income.
3. Operating Subsidiaries: Located in countries where the business operations occur. These subsidiaries earn revenue and incur expenses.
4. Service or IP Licensing Subsidiary: Holds intellectual property (IP) rights and charges other subsidiaries for their use, often located in a low-tax jurisdiction.

The money flows from the operating subsidiaries to the holding company, typically through payments for services, royalties, or dividends. This can result in a reduction of taxable income in higher-tax countries due to these expenses and the accumulation of profits in the lower-tax jurisdiction.

Please remember, this is a very basic outline and real-world scenarios are significantly more complex. Tax laws are subject to change and vary by country, and there's increasing scrutiny and regulation around such practices.

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[cryptodefi]

up. interested in

 

[JohnLocke]

Thank you for your insides.

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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.​

 

[uplana]

Really, no one knows how to set this up ?

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[cryptodefi]

exactly. where are all the people when it comes a bit more complex structure

uplana said:
Really, no one knows how to set this up ?
Click to expand...

Could we invoke the experts

 

[2fire]

I am actually facing same needs right now.
Currently I am planning to open a holding company in ADGM (Abu Dhabi Global Market) and move ownership of subsidiaries there. However I am still thinking what to do with intellectual property to keep it in Switzerland or make a separate company. Is there any recommendation for IP licensing jurisdiction?

 

[mraleph]

2fire said:
I am actually facing same needs right now.
Currently I am planning to open a holding company in ADGM (Abu Dhabi Global Market) and move ownership of subsidiaries there. However I am still thinking what to do with intellectual property to keep it in Switzerland or make a separate company. Is there any recommendation for IP licensing jurisdiction?
Click to expand...

The recommendation for location of the participatory holding, IP holding and subsidiary companies depends on your tax residence, what and where are IP rights and patents registered and from where are you sourcing the income.