Can someone give please enlighten me? I am going to change all the names of the countries involved. Please don't comment on the countries!!!
Right now I live in a low-tax jurisdiction (say Singapore) and I am soon moving to a high-tax jurisdiction (say France). Most of my income will come from dividends, and wan to reduce taxation to the minimum. I considered different options, but it seems that the easiest/cheapest option is for my brother to open a company in a country with low taxes on dividends (e.g. Jersey, where he lives), the money would be his, and I would work for this company for a salary, for which I would pay income taxes. This way I would reduce taxation from 52% to 25% or so. So far, so good, the countries are different and as far as I can see it works fine.
The government of France should not know that the money is mine. One problem is that the government of Jersey would charge me 6% of my money if I donated it to my brother. I wonder if there is a way to avoid this? For example, if I open a company in Singapore, and then use the Singapore company to open the Jersey company (with my brother being the director). Of course the French government can find out who is the owner of the Singapore company, and ultimately tax me on the dividends. Or would the French government be unlikely to find out? Would there be a benefit in having the Jersey company owned by the Singaporean company?
Again, please don't comment on the countries, only on the structure.
Thank you very much!
P.S. I am not an American citizen and I don't live in the US.
Last edited: May 3, 2021
Right now I live in a low-tax jurisdiction (say Singapore) and I am soon moving to a high-tax jurisdiction (say France). Most of my income will come from dividends, and wan to reduce taxation to the minimum. I considered different options, but it seems that the easiest/cheapest option is for my brother to open a company in a country with low taxes on dividends (e.g. Jersey, where he lives), the money would be his, and I would work for this company for a salary, for which I would pay income taxes. This way I would reduce taxation from 52% to 25% or so. So far, so good, the countries are different and as far as I can see it works fine.
The government of France should not know that the money is mine. One problem is that the government of Jersey would charge me 6% of my money if I donated it to my brother. I wonder if there is a way to avoid this? For example, if I open a company in Singapore, and then use the Singapore company to open the Jersey company (with my brother being the director). Of course the French government can find out who is the owner of the Singapore company, and ultimately tax me on the dividends. Or would the French government be unlikely to find out? Would there be a benefit in having the Jersey company owned by the Singaporean company?
Again, please don't comment on the countries, only on the structure.
Thank you very much!
P.S. I am not an American citizen and I don't live in the US.
Last edited: May 3, 2021
