The development of tax legislation and cooperation between states on the exchange of information in this area significantly affects the work of offshore enterprises. Old structures, partnerships cease to bring positive results. The way out of the situation is deoffshorization.
Increasingly, there is a need to provide reports on the receipt of real income from production, the provision of services in different countries. Moreover, the implemented project for the automatic exchange of information practically does not allow hiding from the tax authorities. How then not to go broke?
Registration of a company in Estonia and Georgia is an opportunity to avoid paying corporate tax before profit distribution. It turns out using the principle of investment does not have to pay taxes.
Of course, if it is necessary to pay dividends to investors, then a tax of 20% is required from this amount. In the future, a tax liability reduction of up to 14% is possible.
In Georgia, the principle of taxation is the same, only the rate of 15%. At the same time, companies are required to keep records and submit reports on time.
Despite strict obligations, these countries are trying to attract companies by providing a residence permit. Additionally, Georgia has a preferential treatment for IT businesses and several free economic zones.
You can choose the state where there are low tax rates. For example, Malta with an effective rate of 5%, Hungary and Bulgaria with a corporate tax of 9-10%.
Of course, in each country there are certain nuances that affect the taxation of the enterprise.
Malta. The total corporate tax rate is as much as 35%, and they must be paid to the country’s budget. But when distributing dividends from the budget, a part of the paid tax funds is returned.
And as a result, the contribution will be about 5%. Of course, to work on such a scheme will require two or more enterprises. And a tax refund to the company’s account is made within a few weeks.
Hungary and Bulgaria. There are no special features in doing business or paying taxes. It is important to consider the percentage of VAT and payment of share capital.
Avoiding tax evasion charges is real.
The main thing is to have an existing foreign company with a website, office, manager and more, in order to respond in time to changes in tax legislation and instantly respond to claims from the states where the companies are registered.
Specialists of Eternity Law International will provide you with professional services in full legal support, selection of documents and we will provide advice on this issue.