International Business Tax Planning

International Business Tax Planning

MillarLaw provides advice and guidance to clients through every phase required to create an offshore business. If you have a domestic or international company you may become interested in offshore planning for a variety of reasons; what follows are some considerations you might want to keep in mind.The company may be able to accumulate income either tax-free or tax-deferred in an offshore company. By careful selection of the jurisdiction for setting up an offshore company, taxes can be substantially reduced by the commercial application of double taxation treaties. Further, the organizational structure, including the kinds and tax domiciles of the owners, can have very important tax consequences.

Large corporations will often choose an offshore hub when doing business in an economically and politically volatile country. By keeping the company in an offshore location, the perception of risk is reduced because asset ownership and the operational base are sitting offshore.

offshore-setupTax planning is a key step in setting up an offshore company. Creating the proper structure will contribute to legally reducing tax obligations.

Anyone working overseas can set up an offshore company to minimize tax exposure. Many designers, authors, consultants and entertainers set up offshore companies to receive fees for services.

Starting an offshore company for the purpose of transfer pricing is legal if properly structured. In this instance, profits from a high-tax jurisdiction can be migrated to a low- or zero-tax offshore jurisdiction.

Funds accumulated in an offshore company can be invested or deposited globally, although funds may be subject to tax where the investments are held and there’s FBAR reporting.

Paying employees working overseas from an offshore base can reduce payroll and travel expenses, as well as tax relief and Social Security, saving benefits for employees.

A properly structured company’s international income may be tax deferred.

Starting up an offshore company for captive insurance can generate a tax deductible premium and tax savings through the offshore insurance company.

Setting up an offshore business or transferring wealth to an offshore trust is an attractive asset management strategy for expatriates.

Reduce Your Global Taxes

Strategic international tax planning is key to mitigating global tax liabilities. To learn more about how our services can benefit you, call 310-556-3007. You may also contact us online.