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Enjoy your first 30 minutes of a free expert consultation
Bali office hours: 10:00 to 19:00, Monday through Friday
Bali office hours: 10:00 to 19:00, Monday through Friday
Enjoy your first 30 minutes of a free expert consultation
Leave a request and we will call you back or visit Lawson&Wang's office for free thirty minutes expert advice on how to incorporate a company and source administrative support for it or how to optimize taxes in holding, trading or financial business structures. We will be happy to see you as our client or partner.
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Trade company
The availability of a trade company abroad allows manufacturing and intermediary companies to address the problem of optimizing the tax burden while owning assets on a confidential basis. The achievement of such goals must be structured within a model that rationally combines elements of coverage, favorable tax treatment and counterparties' requirements.
The availability of a trade company abroad allows manufacturing and intermediary companies to address the problem of optimizing the tax burden while owning assets on a confidential basis. The achievement of such goals must be structured within a model that rationally combines elements of coverage, favorable tax treatment and counterparties' requirements.
The redistribution of the added value of goods in favor of your own foreign trade company operating in a low-tax or offshore jurisdiction is a widespread solution to boost marginal income generated by import and export operations. The exception to this is when the imported goods are subject to a duty charged at an ad valorem rate, i.e. the applicable customs duty rate depends on the customs value of the goods. In such a situation, an increase in profits can be achieved by reducing the value of imported goods.
It is worth noting a wide variety of countries whose laws enable the preferential taxation of profits generated via international trade transactions. Such European countries include, primarily, the Republic of Cyprus, Estonia, Hungary, Malta, Switzerland, the United Kingdom and Ireland. The main advantage they offer is the ability to obtain a European VAT number, a tool for applying the "reverse charge" mechanism that exempts from paying value added tax in the European Union. At the same time, the tax burden of companies operating in these jurisdictions can be significantly reduced by using agency agreements.
It is worth noting a wide variety of countries whose laws enable the preferential taxation of profits generated via international trade transactions. Such European countries include, primarily, the Republic of Cyprus, Estonia, Hungary, Malta, Switzerland, the United Kingdom and Ireland. The main advantage they offer is the ability to obtain a European VAT number, a tool for applying the "reverse charge" mechanism that exempts from paying value added tax in the European Union. At the same time, the tax burden of companies operating in these jurisdictions can be significantly reduced by using agency agreements.
However, the classic solution is to register a trade company in an offshore jurisdiction. The profit received by offshore companies from sources outside the country is completely exempt from taxes even if they accumulate money in bank accounts located in the same country. This option is the most acceptable if it is possible to establish that the involvement offshore companies is acceptable to the parties to the relevant trade transaction, including customs authorities and the operating bank.
The task of achieving acceptability can be facilitated by incorporating a company in a classic offshore jurisdiction featuring a more favorable reputation. E.g., in the real world, trade companies domiciled in Singapore, Macau, Hong Kong or the UAE Special Economic Zone, despite their offshore status, do not arouse suspicion on the part of customs and tax authorities when trading with the Asian region. Another popular solution to this issue is to open an account or incorporate a management company in a prestigious jurisdiction, such as Austria or Liechtenstein.
The task of achieving acceptability can be facilitated by incorporating a company in a classic offshore jurisdiction featuring a more favorable reputation. E.g., in the real world, trade companies domiciled in Singapore, Macau, Hong Kong or the UAE Special Economic Zone, despite their offshore status, do not arouse suspicion on the part of customs and tax authorities when trading with the Asian region. Another popular solution to this issue is to open an account or incorporate a management company in a prestigious jurisdiction, such as Austria or Liechtenstein.
The redistribution of the added value of goods in favor of your own foreign trade company operating in a low-tax or offshore jurisdiction is a widespread solution to boost marginal income generated by import and export operations. The exception to this is when the imported goods are subject to a duty charged at an ad valorem rate, i.e. the applicable customs duty rate depends on the customs value of the goods. In such a situation, an increase in profits can be achieved by reducing the value of imported goods.
It is worth noting a wide variety of countries whose laws enable the preferential taxation of profits generated via international trade transactions. Such European countries include, primarily, the Republic of Cyprus, Estonia, Hungary, Malta, Switzerland, the United Kingdom and Ireland. The main advantage they offer is the ability to obtain a European VAT number, a tool for applying the "reverse charge" mechanism that exempts from paying value added tax in the European Union. At the same time, the tax burden of companies operating in these jurisdictions can be significantly reduced by using agency agreements.
It is worth noting a wide variety of countries whose laws enable the preferential taxation of profits generated via international trade transactions. Such European countries include, primarily, the Republic of Cyprus, Estonia, Hungary, Malta, Switzerland, the United Kingdom and Ireland. The main advantage they offer is the ability to obtain a European VAT number, a tool for applying the "reverse charge" mechanism that exempts from paying value added tax in the European Union. At the same time, the tax burden of companies operating in these jurisdictions can be significantly reduced by using agency agreements.
However, the classic solution is to register a trade company in an offshore jurisdiction. The profit received by offshore companies from sources outside the country is completely exempt from taxes even if they accumulate money in bank accounts located in the same country. This option is the most acceptable if it is possible to establish that the involvement offshore companies is acceptable to the parties to the relevant trade transaction, including customs authorities and the operating bank.
The task of achieving acceptability can be facilitated by incorporating a company in a classic offshore jurisdiction featuring a more favorable reputation. E.g., in the real world, trade companies domiciled in Singapore, Macau, Hong Kong or the UAE Special Economic Zone, despite their offshore status, do not arouse suspicion on the part of customs and tax authorities when trading with the Asian region. Another popular solution to this issue is to open an account or incorporate a management company in a prestigious jurisdiction, such as Austria or Liechtenstein.
The task of achieving acceptability can be facilitated by incorporating a company in a classic offshore jurisdiction featuring a more favorable reputation. E.g., in the real world, trade companies domiciled in Singapore, Macau, Hong Kong or the UAE Special Economic Zone, despite their offshore status, do not arouse suspicion on the part of customs and tax authorities when trading with the Asian region. Another popular solution to this issue is to open an account or incorporate a management company in a prestigious jurisdiction, such as Austria or Liechtenstein.