Thai Company Structure

Thailand is not a tax haven or an offshore center. However, Thailand is a very popular country in which to buy real estate and this can be done with an offshore structure although it is not possible to buy real estate directly from the offshore company. Instead an offshore structure with a local Thai company and physical owners has to be created.

ILO Real Estate Co is a Thai Law Firm that has published an example of how a Thai Company Structure in order to buy real estate in Thailand could look like. The Schematic consists of a pdf-file that can be downloaded down below.

Thai Company Structure

Some Basic Characteristics of an International Business Company (IBC) in Belize

Belize is a popular jurisdiction for incorporating offshore companies and IBC’s incorporated in Belize are often used by high net worth individuals to lease and own property, estate planning, tax optimization and also in conjunction with trust and by international companies in cross border transactions.

A Belize IBC is a tax-free and exchange control-free Limited Liability Company, incorporated under the laws of Belize. However all its profit-earning activities must be conducted outside Belize. A foreign company also has the option to continue under the law of Belize as an IBC and would still have all the benefits provided by law.

A fundamental feature of the IBC in Belize is how the law was specially designed to be cost saving. Because there are no minimum capital requirements, no need for audited accounts, no annual returns, no requirement for a local director or secretary and no requirement for an annual general meeting, the costs of maintaining a Belize IBC are kept to a minimum.

Another feature that makes a Belize IBC attractive is its flexibility. Only one director and one shareholder are necessary and it may have bearer shares or registered shares, voting or non-voting shares as well as the authorized share capital may or may not have a par value. The IBC may conduct any business that is not prohibited under the laws of Belize save and except for banking, insurance, trust management and collective investments, which requires a license. The IBC may also purchase its own shares and redeem its own shares.

Although the Belize IBC must conduct all its profit earning activities outside Belize, it may lease an office in Belize, obtain the services of Belize professionals and trust companies, keep its company records and hold meetings in Belize, operate an account with a local Banking institution, hold shares in another Belize IBC and own vessels registered in Belize.

To register a company in Belize proper due diligence is carried out by the registered agents in compliance with The Money Laundering Act and Code of Conduct in Belize. A company may choose to have nominee directors or nominee shareholders; however, the only document presented for public filing at the registry is the Memorandum and Articles of Incorporation. There is no requirement for public disclosure or annual filing of accounts under the act. The Financial Intelligence Unit of Belize and the International Financial Services Commission of Belize are the only two organizations that have privy to client’s information upon request.

Information from Deloitte about the Tax System in Cyprus

Deloitte is one of the largest providers of audit, tax,consulting and financial advisory services in Cyprus and constitutes a part of Deloitte Touche Tohmatsu (DTT) that is one of the world’s leading professional services firms with almost 170.000 people in more than 140 countries.

Deloitte’s professional services in Cyprus includes:

• audit of financial statements in accordance with International, UK or US audit standards tax services to both Cyprus and foreign companies,
• consulting services including financial and management consulting,
• EU advisory services,
• information technology (IT) and human resource consulting,
• investment & wealth advisory services,
• e-business services including technical and tax services,–
• corporate finance services as well as advice andassistance to private companies considering to go public, –
• accounting services, formation of companies with lawyers and special services to international business companies.

Deloitte has published en excellent brochure/book with the title ‘Cyprus Tax Facts 2010′ that gives an easy to understand but still comprehensive description of the Cyprus Tax System. The publication is a must for anyone thing about incorporating a company in Cyprus or in any other way setting up an offshore structure where Cyprus is included.

The publication informs about almost everything in the Cyprus Tax system from offshore companies and International Business Companies to Royalties and pensions.

The publication is in pdf-format and can be downloaded directly by the link below and the website of Deloitte Cyprus can be reached at the following address: http://www.deloitte.com/view/en_CY/cy/index.htm

Download: Cyprus Tax Facts 2010

Update on German Authorities buying information on Germans having hidden money in Swiss Banks Accounts

Since a couple of months ago there have been a lot of fuzz in the media regarding data with information about Germans having undeclared money in Swiss Banks Accounts. The data has been stolen from a Swiss bank and the person who has stolen the information has offered the German state to buy the information.

The German authorities did already in 2008 purchase data stolen from a bank in Lichtenstein and earlier this year the German federal government authorized the state authorities to buy the information, even though it was obtained illegally. Therefore it seemed rather obvious that the states would take the opportunity to hit hard against the tax evasion and on Friday a spokesperson for North Rhine-Westphalia (NRW) said it now had received the information about the bank accounts bank on a CD. How much it has paid for the information was not revealed.

The case has deeply shaken Switzerland’s large private banking industry and Germans hold an estimated 200 billion euros in undeclared funds in Swiss banks. Only in the past months almost 6 000 Germans have turned themselves in to the authorities which is expected to make it possible for the German authorities to recover about 500 million euros of lost taxes.

Swiss Trust Company

A Swiss Trust Company is a dormant Swiss corporation, either an SA (Société Anonyme) or AG (Aktiengesellschaft), that has been purchased from its original owner and reinstated. The buyer receives a tax and liability release certificate and takes over operation of the entity.

A “seasoned” Swiss company has an original incorporation date that remains intact providing increased levels of goodwill, prestige, and marketability. This can be very valuable when merging operations into an existing Swiss company, when added to an investment company or offshore bank structure, or when justifying transactions with the company that might be questioned if it was a newly formed entity created at the time of the transfer.

New Barclays Wealth Clients now Save up to GBP30 on Each International Payment and Urgent Same Day Transfers

———
This is a press release from Barclays Wealth International
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LONDON, February 22, 2010 /PRNewswire-FirstCall/ — Barclays Wealth International has introduced a limited offer for new clients enabling them to save money on online international payments and urgent same day transfers for up to 14 months*. This means that international clients who make as few as three online international payments or urgent same day payments a month, could save GBP1,080 over a 12 month period**.

This special offer is available to new clients who open an account with Barclays Wealth International between 15 February 2010 and 31 March 2010.

Under this latest offer the following online payment types will have the Barclays standard payment fee waived:

– Urgent same day payments such as CHAPS (Clearing House Automated
Payment System)
– International payments
– SEPA credit transfers (Single Euro Payments Area)***

This exclusive offer to new clients joining Barclays Wealth International before the 31 March 2010 will expire on 22 April 2011, so accounts opened early will benefit from the waived fees on international online payments for up to 14 months.

Mark Richards, Managing Director, Head of Sales for Barclays Wealth International & Wealth Intermediaries, commented: “We are delighted to be waiving the Barclays standard payment fee on international payments and the urgent same day transfer service from 15 February 2010 to 31 March 2010. “As the UK’s largest wealth manager with an expertise in servicing the requirements for international clients, to be able to move their money online at the touch of a button. Our offer will give new international clients the opportunity to make unlimited urgent same day payments and international transfers with no standard fees, potentially offering a huge cost benefit.”

Barclays Wealth already offers all of its international clients a number of free payments and transfers as standard, including; non-urgent payments, transfers between a client’s own Barclays Wealth accounts and standard payments such as bill payments to third parties.

Notes to editors:
Lines are open 7am to 8pm weekdays and 8am to 5pm weekends and UK bank holidays local time. Call charges may vary. Please check with your local telecoms provider. Calls may be recorded for training and security purposes.

*The offer is open to all new clients to Barclays Wealth International including those who currently hold an account with another division of Barclays Wealth. The offer includes the Barclays Standard Payment charge. Additional charges may still apply – these will be advised at time the online transaction is made.

**Based on current online international payment charges of GBP25-30 per transaction

***SEPA Credit Transfers are only available to EU / EEA account holders and not currently available to clients based in Jersey, Guernsey and the Isle of Man

For further information regarding the latest international payments offer visit: http://www.barclayswealth.com/paymentsoffer and to find out how you can benefit from the range of International Payment Services currently offered visit http://www.barclayswealth.com/international or telephone enquiries please call +44(0)1624-684316. To apply for a Barclays Wealth International account visit: http://www.barclayswealth.com/internationalapply

About Barclays Wealth International
Barclays Wealth International is the international banking division of Barclays Wealth. We specialise in international and offshore banking, savings, investments and mortgage services designed for expats, UK resident non-domiciles (RNDs) and those banking offshore, and for residents of Jersey, Guernsey, Isle of Man and Gibraltar.

About Barclays Wealth
Barclays Wealth is a leading global wealth manager, and the UK’s largest, with total client assets of GBP151.3bn, as at 31 December 2009. With offices in 25 countries, Barclays Wealth serves affluent, high net worth and intermediary clients worldwide, providing international and private banking, investment management, fiduciary services, and brokerage.

Barclays Group is a major global financial services provider engaged in retail and commercial banking, credit cards, investment banking, wealth management and investment management services with an extensive international presence in Europe, the Americas, Africa and Asia.

With over 300 years of history and expertise in banking, Barclays operates in over 50 countries and employs over 145,000 people. Barclays moves, lends, invests and protects money for over 49 million customers and clients worldwide.

For further information about Barclays Wealth, please visit our website http://www.barclayswealth.com.

Twitter page: http://www.twitter.com/barclayswealth

SOURCE Barclays Wealth International

Switzerland and the Netherlands Sign New Double Taxation Agreement

The Federal Department of Finance in Switzerland informs that today in The Hague, Switzerland and the Netherlands signed a new double taxation agreement (DTA) in the area of income tax. It will replace the existing DTA of 1951/1966. The new agreement contains namely provisions on the exchange of information in accordance with the OECD standard, which were negotiated in line with the key points decided by the Federal Council. The new DTA will contribute to the further positive development of bilateral economic relations.

Compared with the current DTA, improvements have been achieved in the area of withholding taxes: the percentage holding for withholding tax exemption for dividends has been reduced from 25% at present to 10%. Dividend payments to pension funds will also be exempt from tax in the source state in future. Furthermore, a zero rate has been agreed for interest. In addition, the new DTA contains an arbitration clause. This is used if the competent authorities are unable to reach an agreement within three years following the commencement of a mutual agreement procedure.

After negotiations finished, a report on the new DTA with the Netherlands was submitted to the cantons and the business associations concerned for their comments. The Conference of Cantonal Finance Directors and the business associations largely welcome the signing of the agreement.

———-
Press Release from the Federal Department of Finance in Switzerland
Original Release can be found at: http://www.efd.admin.ch/00468/index.html?msg-id=32020&lang=en
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http://www.efd.admin.ch/00468/index.html?msg-id=32020&lang=en

Former UBS Client Pleads Guilty to Hiding $10 Million in Offshore Bank Accounts

Defendant Skimmed Proceeds from his Watch Businesses to Fund Secret Accounts

WASHINGTON – Jack Barouh of Golden Beach, Fla., pleaded guilty today to filing a false tax return, the Justice Department and Internal Revenue Service (IRS) announced. Sentencing has been set for April 16, 2010, before U.S. District Judge Adalberto Jordan in Miami. The defendant remains free on a $1 million bail pending sentencing. He faces a maximum sentence of three years in prison.

According to court documents and statements made in court, Barouh admitted to filing a false tax return for 2007 in which he failed to report that he had an interest in or a signature authority over financial accounts at UBS AG, one of Switzerland’s largest bank. He also failed to report income earned on his UBS Swiss bank accounts. The UBS accounts were opened in the names of Domilou S.A., a nominee Panamanian corporation, and Similen Investments Limited, a nominee British Virgin Island corporation. For years 2002 through 2007, the tax loss associated with the Domilou and Similen accounts at UBS is approximately $736,269.

In addition to the Domilou and Similen accounts, the defendant owned and controlled several additional offshore bank accounts located at banks other than UBS, including accounts in Switzerland and Hong Kong.

According to court documents, the defendant owned and operated several businesses that manufactured and sold watches. Beginning in 1976, the defendant skimmed income from his watch businesses and deposited the proceeds into his undeclared UBS bank accounts. The defendant also deposited unreported sales commissions into the accounts.

According to court documents, beginning in 2007, the defendant attempted to withdraw his funds from Switzerland and repatriate all of the money into the United States. However, a Swiss attorney persuaded the defendant to transfer the money from Switzerland to a newly created bank account in Hong Kong in the name of a nominee Hong Kong corporation. The Swiss attorney then told the defendant to pay himself an annual “consulting fee” until all of the funds were brought into the United States. The Swiss attorney knew the defendant was not going to perform any consulting work.

As part of his plea agreement, the defendant agreed to pay a 50 percent penalty for the one year with the highest balance in his offshore accounts in order to resolve his civil liability for failing to file Reports of Foreign Bank and Financial Accounts, Forms TD F 90-22.1. The highest balance of all of the assets the defendant owned and controlled offshore was approximately $10,017,613. The defendant also must pay any additional taxes, interest and penalties he may owe.

“Today’s guilty plea is the latest success in our crackdown on illegal offshore tax evasion,” said John A. DiCicco, Acting Assistant Attorney General of the Justice Department’s Tax Division. “The Justice Department and U.S. Attorneys’ Offices will continue our investigations and prosecutions of individuals who utilize offshore accounts in Switzerland and elsewhere.”

“Skimming from one’s business and placing the assets in a secret offshore bank account is a classic example of tax evasion,” said Jeffrey H. Sloman, U.S. Attorney for the Southern District of Florida. “With tax day looming, today’s guilty plea is a reminder that those who violate the tax laws will be held accountable.”

“Hiding money in foreign bank accounts to evade paying taxes is a crime,” said Victor S. O. Song, Chief, IRS Criminal Investigation. “The IRS will continue our efforts to bring non-compliant taxpayers into the tax system either through the voluntary disclosure program or criminal prosecution.”

Acting Assistant Attorney General John DiCicco and U.S. Attorney Jeffrey H. Sloman commended the investigative efforts of the IRS agents involved in this case, as well as Senior Litigation Counsel Kevin M. Downing and Trial Attorney Mark F. Daly of the Tax Division, and Assistant U.S. Attorney Jeffrey A. Neiman, who are prosecuting the case.

In February 2009, UBS entered into a deferred prosecution agreement pursuant to which the bank admitted to helping U.S. taxpayers hide accounts from the IRS. As part of their agreement, UBS provided the United States government with the identities of, and account information for, certain United States customers of UBS’s cross-border business. Jack Barouh is the seventh former client of UBS to plead guilty to a tax felony.

U.S. citizens who have an interest in, or signature or other authority over, a financial account in a foreign country with assets in excess of $10,000 are required to disclose the existence of such account on Schedule B, Part III of their individual income tax return. Additionally, United States citizens much file a Report of Foreign Bank and Financial Accounts, or F-Bar, with the U.S. Treasury, disclosing any financial account in a foreign country with assets in excess of $10,000 for which they have a financial interest in or signature authority, or other authority over.

More information about the Justice Department’s Tax Division and its enforcement efforts is available at http://www.usdoj.gov/tax/.

Why Offshore Tax Haven Company Incorporation

Why Incorporate an Offshore Tax Haven Company?

An Offshore, International Company is commonly set up in a tax haven like the British Virgin Islands, Bahamas, Caymans Islands etc, where there are no corporate or personal income taxes, capital gains taxes, reporting requirements, or restrictions on company employment policies.

As the “world” becomes global, fewer businesses are local and many corporations are increasing going internationalization. Corporate structuring and planning have achieved higher levels of complexity than ever before while the need for anonymity remains strong.Corporation must keep pace and be constantly on the look out for new ways to profit. One way is to have a clear understanding of the characteristics offshore foreign corporations and how they may be put to advantageous use.

Offshore Companies are only applicable if you are doing business overseas and not in the country where you’re offshore was incorporated. All income derived in and from the incorporated country is normally taxable. eg. An offshore incorporation in Bahamas, doing business in Bahamas will require to pay taxes in Bahamas, where else, if the business was done in USA or Hong Kong, all profit are not taxable.

Singapore and Hong Kong although not typically regarded as tax haven, has a favourable tax regime which effectively means that correctly structured, managed and administered these companies can be utilised for offshore business and international business without paying tax in Singapore or Hong Kong provided that any profits arising are not made in the respective country (non resident company) and the earned money can be remmitted back. This type of tax regulation is known as “territorial taxation”. With the strict rule in place for prevention of money laundering and terrorist financing, opening bank account for other tax haven jurisdictions can be difficult. On the contrary, to open a corporate bank account for companies in Singapore or Hong Kong is easier as these companies are more transparent due to the strict compliance control by the government.

What is Tax Haven?

A tax haven is normally known as a jurisdiction, which actively makes itself available for the avoidance of taxes, which would otherwise be paid in a higher tax jurisdiction. A more correct term to use would be tax mitigation or planning, because there are ways of mitigating taxes without breaking the law, whereas tax avoidance is generally classified as a crime.

Is it legal for me to have offshore companies, and bank accounts?

Yes, because most nations encourage international trade and enterprise, there are usually no restrictions on residents doing business or having bank accounts in other countries. Reporting requirements on such accounts however, differ from country to country. Sophisticated and reputable high-net-worth individuals and corporations routinely use offshore investment vehicles worldwide.

Main keys benefits for having your an offshore company.

The main reasons to incorporate offshore are:

Asset Protection – Protect assets in combination with a Trust, an offshore company can avoid high levels of income, capital and death taxes that would otherwise be payable if the assets were held directly. It can also protect assets from creditors and other interested parties. From competitors, adverse claimants and other parties from whom you wish to keep your business interests private and to secure against future claims such as bankruptcy, judgment creditors and other litigants, etc.;

Confidentiality – Keep business affairs confidential, Offshore Companies offer complete privacy. If the company shares are held by a Trust, the ownership is legally vested in the trustee, thus gaining the potential for even greater tax planning advantages.

Estate Planning – Family and Protective Trusts (possibly as an alternative to a Will) for accumulation of investment income and long-term benefits for beneficiaries on a favorable tax basis (without income, inheritance or capital gains taxes);

Simplify the transfer of assets and properties held in several countries: The sale or probate of properties in different countries can become complex and expensive. If an offshore company collectively holds these, ownership can be transferred by company shares rather than transferring the actual properties owned by the company.

International Tax Planning – Conduct business without corporate taxes: Tax havens, such as British Virgin Islands, allow the formation of International Companies that have no tax or reporting responsibilities. This means you save money not only from the absence of corporate taxes, but also from reduced compliance and other regulatory costs. Reduce payroll and travel expense administration: Allow employment or consultancy fees to accumulate in a low tax area: Offshore corporations can contract the services of professionals to employers resident in high tax locations or politically unstable areas. This allows the fees to accumulate in a low tax jurisdiction.

Conduct business as an international entity: International Companies have the same rights as an individual person and can make investments, buy and sell real estate, trade portfolios of stocks and bonds, and conduct any legal business activities – so long as these are not done in the country of registration. Offshore Companies set up in offshore need not pay social security, withholding tax, or associated expenses of employees working in other foreign countries.

Major savings for companies that have staff working on overseas projects. Minimize tax exposure when dealing with international transactions: An offshore corporation can buy or lease products from one country and then sell or lease them to a company in another country so the profits of the transaction are accumulated in the offshore company where there is no taxation on profits. Maximize profits from intellectual property rights, franchising and licensing: An offshore company can franchise or license intellectual property rights in other foreign countries allowing the profits to accumulate in a tax-free environment.

Protect investments in other foreign countries: International Companies can loan funds to corporations in other foreign countries. Investors may set up, but not directly own, an offshore company that loans funds to a development company set up in another country and charge interest rates that will lower tax obligations and protect the long term ability to repatriate investment funds. This can be especially important when working in countries with strict exchange controls and high tax profiles.

Own or lease ships or pleasure craft: Shipping companies may own or lease ships or pleasure craft and pay no taxes on income derived from the vessels. Registration fees are low and vessels are welcomed in ports worldwide.

Set up an Offshore Company:

Rikvin International will set up an offshore company anywhere in the world on your behalf. It normally takes 24 hours to register an offshore company. An offshore bank account can be set up, although it will take longer for full access due to the need to have original signature cards (providing you wish to have direct access to the bank account in your own name.

Rikvin Offshore offers a convenient way to incorporate your company. We provide a comprehensive range of services to both local and international clients. When you want to set up an offshore company, you can rely on us to be there every step of the way for you.

For more information, please visit http://www.rikvinint.com or call us at 65- 64388887

Tags: offshore Incorporation, offshore business registration, setup offshore company

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Offshore Mail Forwarding Address

Often an offshore company address is nothing more than a mail drop assigned to the offshore company. Bank statements, invoices and any other type of company mail may be sent to this address. The mail will typically be picked up each or every two weeks by the offshore company administrator or facilitator. The mail will be put into a plain envelope and mailed to the address of the beneficial owner’s choice. Only the domestic return address and the recipient’s address appear on the envelope and there are no signs that in contains mail sent to the offshore company. Almost all offshore company providers give the possibility to have an offshore mail forwarding address for the offshore company.

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