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Company without a direct Tax Charge

Incorporation of a company without a direct Tax Charge

 

 

It is possible to incorporate a company without a direct tax charge. Such companies may join another tax system or be exempt from taxes, depending on the circumstances. If there is a direct tax charge, in most countries, the beneficiaries will have to declare the benefits they have gained in their own tax returns, instead of tax residence.

  • If invoicing within the EU, you may need a VAT number, in such case there may not be any advantages in having a company withuot a direct tax charge
  • If you want to take advantage of a tax treaty, the likelihood is that a company without taxation itself is exempt from the conventions, in which case, there is no advantage in having a company with no direct tax charge. Examples of which are: a British LLP company, which has no members or resident shareholders, a non-resident company in Cyprus, or a company within an international structure, where the ultimate beneficiary is an opaque company of a company in a tax haven.

The types of companies without a direct tax charge are the following:

Traditional offshore companies

Our recommendation is typically Belize, the Seychelles, Liberia, they all cost a similar price and require similar documentation. The most expensive are companies in Panama and the Virgin Islands. A favorite with Spanish is a Gibraltar company (non-resident), but that comes with a fairly high price and a set of complicated rules.

Companies with low taxation, which fit for a structure of international trade

A company in Switzerland without Swiss taxation has a very interesting tax system, and is not considered a tax haven company. A non-resident company in Northern Cyprus has a certain taxation, and can be interesting for the same reasons. A company in the Isle of Man, may have a VAT number, but no Corporation Tax

Companies with no tax but incorporated in countries with normal taxation

Ask us, as there are disadvantages, a British LLP and a company in Delaware also fall in this category.