Can Offshore Taxation Laws Benefit You?

Corporations use offshore taxation laws to allow them to pay less taxes at home.

Do you currently use any corporations that are domiciled in Panama, for example?

Do you or have you ever used Fedex or Costco, for example. Yes they do have corporations in Panama.

Why?

Because Panama doesn't tax them on business unless that business is done in Panama with Panamanians.

So Let's take a company like Costco, for example.

Say they buy some lawn furniture from China for $50.00. They then sell it to one of their stores in, say, California for $100.00. That means they've made a $50 profit, However, according to Panamanian tax law, there's no tax liability. They don't sell that furniture in Panama, so they don't have to pay Panamanian taxes on it.

Now the local California Costco, resells the furniture for $110, thus making only a $10 profit, which is eaten up be overhead and payroll costs. Not tax in California or the US.

Do you see how that works?

Panama is not the only country that wouldn't require you to pay taxes.

For example the tiny island of Seychelles. There is zero Seychelles tax for offshore companies.

So it behooves you to learn about the offshore tax laws in other countries in order to use them to benefit you.

Maybe an offshore corporation would work for your business or maybe not.

Be Aware of US Requirements for Individuals

One thing you need to know. US is a high-tax country with a big taxation appetite, and as such, requires US citizens and resident aliens to report income made offshore. The Internal Revenue Service (IRS)

requires US Citizens to fill our IRS Tax form 1040 and Treasury Form 90-22.1.

Use the latter for accounts that total more than $10,000

And while you're at it, you might want learn more about continuing legal education in this country as well as offshore.education as it relates to taxation. Click here now.