Today’s world is more of a global village and international trading has become institutionalized not only by economic factors. As politics also plays a dominant role in trade it is not only based on commercial objectives.
Tax effective international trading structure in the procurement and supply of goods and services is the key to the success of many joint ventures.
Through the utilization of certain corporate institution, like the British Virgin Islands International Business Company (IBC), clients can obtain treaty relief and other mechanisms offering tax reduction benefits.
Essential opportunities exist where goods are moved pass the border, or pass multiple borders. When incomes have been generated there is often a necessary to transfer them to a low tax destination through the use of adequate holding or tax transparent entities.
The use of international trading structures
Maximize your profit with the help of ICD Fiduciaries by properly structuring your business project. Depending on the jurisdiction where the goods have been exported from and where they are planned to import, by proper choice of your companies destination you can optimize your costs, starting from VAT.
For trading inside European Union, the most favorite jurisdictions have become Cyprus and the Isle of Man, for VAT exemption.
The main advantage is that in these countries you can obtain a VAT number which can be used in all Europe.
Transferring funds to a low tax jurisdiction gives the opportunity to balance trading losses through a company incorporated in a tax haven or low tax country.
From International entity also can benefit in the case of bulk purchasing: such structures are typically incorporated by a group of associated or non-associated companies to decrease the administrative costs.
The main characteristics of international traders
- To purchase and resale of goods internationally,
- The perception of commissions on business operations,
- The benefits from these kind of International business transactions are often tax exemption.
Note that International Trading Company is exempt from corporate tax and beneficial owners data is confidential and is not published in the local commercial register.
Such an international company is thus beneficial for
- International traders, for example, businessmen who specialize in import and / or export with countries located outside their country of tax residence,
- Anyone wishing to protect their capital against possible liability claims.
The advantages of International Trading Structure
- Corporate taxation – 0%,
- Low cost of incorporation and managing the corporate structure,
- Confidentiality and protection of beneficial owners data,
- Reduction of the personal tax bases of the economic beneficiary,
- Protection of the assets of the economic beneficiary against creditors and legal proceedings,
- No requirement to file company accounts,
- No obligation to audit the annual accounts.
Typical International corporations than can be used for such structure
- Seychelles ,
- British Virgin Islands ,
- Mauritius ,
- Belize ,
- Hong Kong ,
- New Zealand ,
- Singapore ,
- Delaware ,
- Panama .