A few examples of using your offshore company
Using an Offshore Company you can legally avoid or minimize your taxes. Some countries (like Belize, Gibraltar etc) do not tax their companies in case they work and earn income outside of the country. In this case a company only pays fixed annual fees, has no obligations towards the tax authority of the country and therefore is entirely free from bookkeeping.
Money in your Offshore Company's account - is money in your pocket, you can use it as you see fit. How exactly to use your Offshore Company depends on the type and location of your business.
You sell your services directly under the name of your Offshore Company and receive the income onto its bank account.
You place your Offshore Company as a middle man between your vendor and your local tax paying company. For example, your Offshore Company buys some goods for US$100 and sell them to your local company for US$145. You local company sells the goods to your client for US$150 and officially pays taxes from a 5 dollar profit. The lion's share of the profit remains in your Offshore Company's account.
You do all your business under the name of your local tax paying company and receive substantial profit of XXXXX US$. Your Offshore Company sells some services* to your local company for XXXX US$. A major part of your profit goes to your Offshore Company's account and becomes tax free. - Your local company pays tax from the remaining profit of X US$.
Money in your Offshore Company's account - is money in your pocket, you can use it as you see fit. How exactly to use your Offshore Company depends on the type and location of your business.
You sell your services directly under the name of your Offshore Company and receive the income onto its bank account.
You place your Offshore Company as a middle man between your vendor and your local tax paying company. For example, your Offshore Company buys some goods for US$100 and sell them to your local company for US$145. You local company sells the goods to your client for US$150 and officially pays taxes from a 5 dollar profit. The lion's share of the profit remains in your Offshore Company's account.
You do all your business under the name of your local tax paying company and receive substantial profit of XXXXX US$. Your Offshore Company sells some services* to your local company for XXXX US$. A major part of your profit goes to your Offshore Company's account and becomes tax free. - Your local company pays tax from the remaining profit of X US$.
