Saving on taxes is something almost everyone wants to do. However the majority of countries have tax laws that mean we must pay our taxes if we want to stay on the right side of the law. Yet there is a way to legally reduce the level of taxation you or your business are subjected to by forming an offshore company.
An offshore company is known officially as an International Business Company (IBC). Even though IBC’S are created in the world every day, many are still unaware of the advantages of forming one and worried that it may not be a legitimate way to save on taxes. But be assured there are multiple reasons why incorporating an offshore company could be of benefit to you and it is definitely a legal and very smart business move.
Incase there is still some confusion between the concepts of tax evasion and tax avoidance, let me explain. Tax evasion is the refusal to pay due taxes, by means that are considered illegal within the law. In contrast, tax avoidance refers to utilizing the provisions within the taxation laws of a country to one’s advantage so that savings on taxes can be made. It is the latter regard that forming an IBC will assist.
An offshore company is simply defined as a company that is incorporated by a non-resident of a jurisdiction where the tax regime is advantageous. Owning an IBC can help you save on numerous punitive taxes such as Capital Gains, Wealth, Inheritance Income and Property transfer taxes.
We have some further informative articles on our Articles Page and are more than willing to spend time with you to explain the benefits of creating an offshore company and assist you in the entire process of setting up one.