Offshore, their types and characteristics.
1. Classic offshore .
In these jurisdictions can establish an offshore company (the company that maintains an international busic) that is exempt from bookkeeping, taxes, delivery of the annual financial report.
example : British Virgin Islands, Belize, Dominica, Seychelles, etc.
- offshore tax exempt;
- no exchange controls;
- The Company is exempt from the date of financial statements, bookkeeping;
- You can freely enter and withdraw capital.
2. Offshore areas with territorial tax system.
In these jurisdictions need to pay tax only on income that is derived from sources that are located in that jurisdiction or received from the activity that was carried out in the territory of that jurisdiction .
example : Algeria, Brazil, Hong Kong, Kuwait, Malayziya, Monaco, the United Arab Emirates, Paraguay, France and others.
They have 2 types :
- in which a territorial tax regime distributed only on passive income (dividends, interest, freight, royalties, and so on. D.).
- in which a territorial tax regime extendsene on passive and active income (Hong Kong, the United Arab Emirates, Panama);
3. Jurisdiction that involve the release of an offshore company tax, from certain activities .
In these jurisdictions, profits derived from the specific activity is not subject to taxth.
Example : Bulgaria, Denmark, Lithuania, Poland, Switzerland and other countries profit, which is derived from transactions with the real estate that is located outside the jurisdiction is not taxed. And in Cyprus, Sweden and Lithuania income tax is not levied on transactions in securities.
4. Jurisdictionswhich is not taxed activities of separate legal entities.
So, for example, in Cyprus, in certain jurisdictions, trust structures and foundations can receive tax benefits and discounts.
5. Jurisdictions that have a low level of tax revenue.
example : Moldova – 0% corporate income tax, Labuan (Malaysia staff) – 3%, Switzerland – 8,5%, – 9%, Cyprus – 10%.