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Tax Engineering

Offshore taxes

Learning about tax legislation of each country is a difficult task since there is no fiscal harmony between countries but each one of them applies a different tax rate depending on its needs. Most high-tax countries collect tax from natural and legal persons based on their world wide income, that is, if a person is a tax resident in Germany and opens a bank account in the United Kingdom to invest in the stock market, the benefits collected in United Kingdom account will have to be declared in tax agency of his resident country, in this case Germany. On the other hand there are countries like Panama and Belize that do not oblige its citizens to pay taxes on income obtained outside of their country of residence and therefore only local or national taxes of the country should be paid.  

Types of taxes

The highest and the most indicative types of income taxes are taxes on natural and legal persons.

Tax on natural persons

Taxes on natural persons affect both residents and non-resident of a country. In a country of high taxation, taxes on natural persons are those that are imposed for all the worldwide income that can come from any legal activity such as: employment, self-employment, commissions, capital yields, savings accounts.

Taxes on legal persons

Taxes on legal persons or companies, also called corporate taxes, are those taxes that are subject to the benefits generated by a company. For example, if a company is registered in the United Kingdom and at the end of the year presents profits, the English tax agency will impose the payment of tax, a percentage of these benefits. In the United Kingdom the tax rate for a company that has profits below 300,000 British Pounds is 19%.

In this section you will obtain the necessary knowledge to save and delay the payment of taxes in your country of residence in a legal manner and without breaching any international regulations or local law. As we said above there is no fiscal harmony between countries and you will verify that there are countries with higher taxes than the one you pay in your country and yet other countries have lower or no taxes.

Should I use offshore to protect my assets?

Taking part of your protected assets to "offshore" gives you access to modern methods of protection and reduces your taxes considerably using corporations and international foundations. When a physical person decides to protect his assets through an offshore company, he grants a special power to this company that has been registered by him in order to assign a property on its name and to avoid embargoes of authorities or companies.

shield to protect offshore assets

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What taxes do offshore companies pay?

The tax of an offshore company is a type of tax imposed by the tax office of the tax haven to the resident company registered on its territory. If the company is set up in a tax haven that has favorable tax laws for non-residents, the company will not pay any kind of tax, since the beneficiary of the offshore company is not resident in the country. If the company is in the name of a resident of a tax haven and conducts operations within the jurisdiction, the company will be taxed as any other company incorporated in a country of high taxation. The main difference between the tax regime of offshore companies and that of a country with high taxes is that in t

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How income tax is calculated by an S.A. in Panama?

Calculating the income taxes (IT) that an SA in Panama has to pay is simple. The Mexican resident payer will have to take into account the world earnings, that is, he will have to take into account what he has earned in Mexico, the SA in Panama or any other income in the world. Once the person declares all the world earnings the IT will apply a percentage of taxes depending on the amount that he has earned. Depending on the volume of rents, the percentage of taxes will be higher or lower, higher the income is higher are the taxes applied. Currently, Mexico has signed the automatic information exchange treaty and as of this year, countries such as Panama will send bank information reports to Mexican ISR. Therefore, we recommend declaring the income that

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What is the FATCA law?

FATCA is an American tax law that entered into force on July 1 of 2013 and means the Foreign Account Tax Compliance Act. The IRS and the Treasury Department drafted the FATCA Act to oblige all banking entities in the world to report on the movements that Americans have in foreign banks. The FATCA law requires natural and / or legal persons of American nationality to inform the IRS and the treasury department through the Form W-9 declaring a bank account opened abroad, either in an offshore or onshore jurisdiction. In the event that the physical or legal person considered FATCA does not complete the W-9 form, the bank will be responsible for breach of the law and could be sanctioned for not cooperating with the United States. The bank is

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LLC in Delaware with account in the USA

If an offshore company in Delaware has accounts in the US, it automatically will be a subject to taxation and will pay its tax based on the benefits the company has since the US is not a tax haven and the state of Delaware is less. The main difference between Delaware and other American states is that in Delaware there are several types of local taxes that are not applied, such as sales VAT, which would be similar to VAT in the European Union. You can see more information on company formation in Delaware.

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VAT in United Kingdom

If you have UK VAT number, you are now obliged to charge your customers with the English VAT on all sales that you make in the European Union, including Spain. Logically, all the purchases you make in the EU may also deduct the VAT. In the case of not charging VAT on operations to your customers in the EU, you will be committing a VAT fraud and can be prosecuted by the English authorities. Do you have the intra-community VAT number? In reference to the English tax advisors, they are so nice. I await your comments.

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Help with tax optimization

Legal fiscal optimization can be defined as the search made by natural or legal person for legal formulas to save the maximum possible on taxes without violating the tax laws of a country. On our page you can find all the financial services offered. If you need information on tax optimization, we recommend that you read the articles from our Blog since there are very good options to perform a good optimization for Mexican tax residents.

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What is tax planning and what is its ultimate goal?

Tax planning is the legal mode and a structured model that a natural person or company uses to avoid the maximum taxation in their country of residence. The vital part in carrying out this fiscal planning are the offshore financial centers. Tax planning is not done in tax havens, as we all think, but outside these financial centers. Thanks to the favorable fiscal environments of the offshore financial centers and double taxation agreements, the perfect tax planning can be carried out.

From our webpage you will learn how to identify an offshore financial center or an international financial center, move your business from onshore to offshore, reduce the tax burden on your company, use the best tax planning for your company, how to save taxes legally

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Minimize revenue taxation

You are not committing any illegality with your MLM business, it is totally legal and you can operate without problems with an offshore company. In case if you do not want to appear in the transaction we recommend you to set up a company in Belize with an account in Cyprus. From what I see the transferred amounts are not very high and you will not have problems with your tax agency. You can receive payments from any country in the world to your offshore including France and Spain. Not all offshore are considered tax havens, you can register an offshore company in Cyprus, for example, with your bank account and it would not be considered a tax haven. Have a nice day

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Does Hong Kong consider to ratify the agreement with the Spanish tax agency?

Up until now,Hong Kong has signed agreements of automatic banking information exchange with 7 countries and Spain is not among them. However, a client should always keep in mind that in the future it is possible that it will be signed. The decision to sign this kind of agreement depends on both countries and their preposition and interest in bilateral exchange of information. It is hard to predict if this kind of agreement will ever take place with Spain because 3 things can happen: it gets signed, it does not get signed or that it happens in a long future. Note that in order for the automatic information exchange agreement to become effective, there must be a bilateral agreement between both countries and if there is not, there will be no exchange of information.

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