Auckland, New Zealand (PressExposure) June 15, 2009 -- One way a person or company takes advantage of a protective and beneficial jurisdiction is by becoming a resident in a tax advantageous environment. Another way for an individual or a company to take advantage of an accommodating tax environment is to establish a separate or subsidiary legal entity such as a company or a common law trust in that jurisdiction.
Additionally, In choosing an offshore jurisdiction to conduct business whether personal or private, it is prudent to select a jurisdiction that bases their trust regulations and statutes on the English common law--this because the very idea of trust formation is an old English idea dating back to the time of the Crusades and the basis for their structure has stood the test of time over the centuries.
âYou can create situations where certain income is not included in your domestic taxable income but is considered foreign-sourced income. Depending on where you reside, you still have to report the income, but you may get it excluded as taxable personal income, that is if you have planned correctly.
Additionally, if you have planned correctly and you have assets in strategic jurisdictions, you can protect these assets from creditors and litigators," states a representative of the international financial planning department from Global Reserve and Finance Limited. âAssets are transferred to the new company or trust so that gains may be realized, or income earned, which otherwise would be realized or earned by the beneficial owner.â
With efforts by the likes of The Organization for Economic Cooperation and Development, (OECD), which works to consistently to build a fairer system of reporting and to raise standards of compliance and protection for savers and investors who make use of offshore tax havens around the world. Many countries are following raising their standards or adjusting their restrictions. However, there are still quite a few beneficial environments.
Tops in Privacy, Asset Protection, Investment Opportunities
Dubai: Has zero taxes- It is not a âtax haven,â but a country with no taxes! Additionally, Dubai has no âMutual Legal Assistance Treatiesâ or other information exchange agreements with the U.S. It has a highly flexible and confidential banking system geared to the requirements of high net worth international investors and a strong legislation which protects the confidentiality of investors
Hong Kong: You pay 15% to 20% tax on personal or business income earned in Hong Kong, but no tax on overseas income. Its reliable legal system based on English common law, makes Hong Kong a suitable jurisdiction for offshore companies and trusts.
Switzerland: Banking secrecy is Switzerlandâs most famous calling card, and it has resisted decades of pressure from the OECD, However, Switzerland now participates in the EU Savings Tax Directive and EU nationals banking in Switzerland now have taxes withheld from most interest bearing investments. Wealthy foreigners who reside in Switzerland can be taxed on a lump-sum basis, starting at around US$40,000 annually. However, for multinational corporations, there are no withholding taxes on dividends, interest and royalty payments between affiliated EU enterprises and Switzerland. FATF Switzerland recently weakened its secrecy laws and cooperates more fully in foreign criminal investigations.
Lichtenstein: Imposes no taxes on most entities owned by foreigners. However, it has signed on to the European savings tax directive and, like Switzerland, Liechtenstein will withhold tax from many interest-bearing accounts owned by EU nationals. Its only tax treaty is with Austria. The Lichtenstein (Family) Foundation has always been one of the worldâs best asset protection vehicles.
Belize: Corporations are not subject to any tax or duty income on profits. All dividends or distributions paid by the company to persons who are not resident are tax exempt. Belize does not disclose banking or fiscal information where the stated ground for its request is suspicion of any tax related offense.
Cayman Islands: There are no income taxes, capital gains taxes, profits tax, or estate taxes. Bank secrecy laws are among the strictest in the world with criminal penalties for unauthorized disclosure. The law regarding the formation of trusts is highly developed and allows an excellent level of flexibility, asset protection, and privacy.
Seychelles: The banking secrecy regulations stipulate that all information relating to the client must remain strictly confidential. Information sharing, reporting or any kind of release of confidential banking information to any foreign party or foreign government is strictly prohibited. Offshore financial services sector contributes significantly to the country`s GDP. There is an inherent interest with the government and with the general public to maintain and develop the country`s status as a competitive offshore financial centre. Additionally there is neither business tax nor business tax in Seychelles.
Panama: A solid financial infrastructure, zero taxes for non-Panamanian income, Panama enacted a law authorizing private foundationsâwhich are used like trusts in civil law countries cheaper to administer. Panama has good offshore professional services, with dozens of banks, trust companies and attorneys to choose from.
Global Reserve and Finance Limited currently recommends utilizing Panamanian corporations and foundations. Panama IBC law uses what we consider to be some of the most solid banking and corporate book secrecy laws in the world. These secrecy laws are engraved in its constitution. Panama does not have any MLAT's (Mutual Legal Assistance Treaties) with any other country. Panama also offers the Panama Private Interest Foundation, which is one of the most useful asset protection and estate planning vehicles available today. A Private Interest Foundation in Panama can own foreign corporations anywhere; it can own real estate, boats, airplanes, art work, gold, rare stamps and coins, jewelry, patents, royalty rights, autos, collectibles, stocks, bonds, options and other things of value. The objective is to remove ownership from their personal name, to the name of a foreign entity whose ownership is anonymous.
About Global Reserve and Finance: Global Reserve and Finance Ltd. is headquartered and incorporated under the laws of New Zealand. In accordance, Global Reserve and Finance must comply with the Companies Act 1933, the Fair Trading Act 1986, the Financial Reporting Act 1993, as well as other consumer protection legislation. The company offers CDâs, savings accounts, commercial lending, estate planning, and access to hedge fund and trading platform services. To learn more about GRF visit their website [http://www.globalreserve.co.nz].