Eternity Law International — News — Tax planning

Tax planning

Published:
March 2, 2020

The end to offshore companies. Tax planning

In many states, because of the global crisis, it was decided to find additional resources in order to replenish the budget. For this reason, tax planning has become quite relevant and necessary for many companies.

To this end, they are actively trying to tightly control the capital of all taxpayers, including those who are outside the country.

It is worth paying attention to the fact that in the United States it was decided to launch several bills that put pressure on other financial institutions to disclose information on taxpayer accounts.

To control taxpayers of residents and US citizens, FATCA reporting was legalized. The bill implies obligations to foreign banks to provide reports on financial movements in accounts.

In the event of a refusal, the US authorities may take penalties for banks and decide to close them. According to the latest statistics, 113 countries fall under the law.

Other influential countries, such as Great Britain and Germany, also became interested in this practice. They also conclude agreements with other countries regarding the provision of information on deposits and taxes of their citizens.

This policy may possibly lead to the fact that the owners of large capital will stop using banking services, and will begin to withdraw funds to offshore.

In the first place for such citizens will be offshore with a guarantee of confidentiality of information.

The more and more actively pressure is exerted on banking institutions, the offshore zone attracts more attention from citizens – it is determined by the fact that citizens do not want to earn their own money, it shares with the state.

And no matter how tough the prohibitions are regarding offshore companies, their number is not decreasing.

ESTABLISHING UNIFIED LAW IN THE WORLD

Some countries are trying to impose their will on other states. And every year there are more and more bills that relate to the activities of non-resident companies, which are required to obey them.

And ignoring these laws involves breaking international agreements and restricting access to credit and other resources.

For example, the main goal of the FCPA in the United States is to fight corruption internationally. The law has been operating for over 40 years, but in fact it began to function only recently.

Violators of the conditions established under the bill are subject to both civil and criminal liability. Their capital may be fined a large amount.

TAX HARBOR WITHIN THE OWNERSHIP

In order for the capital from doing business not to be taken offshore, it is enough to create conditions attractive for citizens within the framework of their country so that the need to search for a tax haven outside the country automatically disappears. One such option is tax planning.

Favorable conditions allow not only to keep the capital of their citizens within the country, but also to attract citizens of other states.

For these reasons, many countries practice “tax freedom”, providing their taxpayers with the most favorable conditions for actively developing business projects. There are similar offers in Austria, the Netherlands, Great Britain, and Switzerland.

Despite this, such popular offshore zones as Cyprus, Panama, Belize, the British Virgin Islands do not go unnoticed by the owners of large companies.

Due to the large number of existing offshore zones, there is intense competition between them, which stimulates them to introduce more attractive and unique offers for investors.

In order to reliably protect their assets, businessmen use sophisticated schemes. To do this, more and more often not one offshore account is opened, but several, and at the same time in different jurisdictions.

It is also worth emphasizing the benefits of moderate tax rates in EU countries. For example, in Cyprus, Hungary, Bulgaria they do not exceed 15% for profit. But, for example, in Georgia and Estonia, provided that dividends are not distributed, profits are not taxed.

Summing up, it is worth noting that with competent tax planning, building a legal and reliable work scheme, it is important to seek the help of experienced and highly qualified specialists in the field of tax planning.

Our company is based on experience with this sphere and Eternity Law International specialists will be happy to рrovide you with assistance in resolving this issue.

You could be interested

Ready-made company in Armenia

Armenia is a country located in the south of the Caucasus and does not belong to offshore zones. This jurisdiction is attractive for investors with comprehensive support for start-ups, simple registration of activities and loyal conditions of the commercial environment. Armenia is a link between Europe, the Eurasian Economic Union, Iran, as well as Canada,...

What is CBDC?

A central bank digital currency or, shortly, CBDC is explained as a virtual asset that is backed and issued by central banks. As cryptocoins and stablecoins have obtained boosted engrossment from holders, monetary authorities across the globe have decided to create a substitute to physical money or risk missing out on the future of funds....

SPI license in Latvia

This jurisdiction is quite attractive for starting a business project, as it offers favorable tax conditions, has a stable economic base and provides comprehensive support for start-up entrepreneurs. Many businessmen also prefer Lithuania for expanding their business. In addition, the country has shown significant commercial growth and progress in recent years. Our company is made...

Web Summit Lisbon 2022: Unveiling the Frontiers of Innovation

From November 1st to November 4th, 2022, Lisbon, Portugal, stood as a beacon of technological advancement and visionary thinking, hosting the highly anticipated Web Summit. This global congregation of innovators, entrepreneurs, and industry leaders marked a pivotal moment in the journey towards shaping the future of technology and innovation. The event, renowned for its unparalleled...

Overview of recent changes to the PCMLTFA regulations

On April 5, 2022, a number of modifications to the PCMLTFA regulations were published. This article provides an overview of recent amendments to the AML/TF regulations, which have implications for crowdfunding sites, and may bring a substantial impact on money service companies subject to their operational format. Updated PCMLTFA regulations: what is new? By virtue...

The corporate tax system in Bulgaria

If you desire to have the ability to conduct entrepreneurship anywhere in the EU, Bulgaria is an excellent choice. Having the firm around enables you to utilize a variety of services on par with Bulgarian nationals. In this report, you can get more details on taxation in Bulgaria. So, does Bulgaria have high taxes? Is...

Discover our services

The international company Eternity Law International provides professional services in the field of international consulting, auditing services, legal and tax services.

Ready-made companies for sale

Companies with a bank account around the world

Banks for sale

Established Banks for sale

Ready-made licenses for sale

Forex, cryptocurrencies, gambling, EMI, PSP, SVF, MSO, DLT

Licensing

Forex licenses, cryptocurrencies, gambling, EMI, PSP, SVF, MSO, DLT

Offshore company registration

Expert advice on the acquisition of an offshore company

Open a bank account

Open bank accounts in more than 120 banks around the world
Fill the blank:

Zurich

Dreikonigstrasse, 31A, Stockerhof
+41 435 50 73 23

Kyiv

Baseina street, 7
+38 094 712 03 54

London

Grosvenor Gardens, 52
+44 203 868 34 37

Washington

1629 K St. Suite 300 N.W.
+1 (888) 647 05 40 Toll Free

Vilnius

Gediminas Avenue, 44A
+370 52 11 14 32

Tallinn

Kesklinna linnaosa, Tuukri 19
+372 880 41 85

Edinburgh

Lochrin Square, 1
+44 203 868 34 37

Nicosia

Jacovides Tower, 5 floor
+371 665 550 51

Riga

Esplanade, 7 floor
+371 665 550 51

Hong Kong

18 Harbour Road, 35/F, Central Plaza, Wanchai
800938622 Toll Free

Singapore

Level 42, Suntec Tower Three, 8 Temasek Boulevard
+6531594300

Sydney

20 Martin Place
+61 2 888 00 365

Porto

2609 Avenida da Boavista
+351 800 500 206 Toll Free

Tbilisi

Revaz Tabukashvili Str., N 45, area N 7
+995706070360