Capital-distribution In Offshore

 

Considerable distribution was lately got by charts using existent international agreements about the exception of double taxation. For example, in accordance with the Cyprian-British agreement and with additional elucidations of the British side at implementation of certain terms the company incorporated in Great Britain can appear by the tax resident of Cyprus and pay a tax on a Cyprus offshore-rate 4,25 %. Thus, outwardly the fully decent English firm in fact is Cyprus offshore. Basic condition which is required to execute, is finding of the real center of management by a company at Cyprus, for what it is needed, among other, to appoint as the directors all the Cyprus citizens.

Construction under the name "Dutch open sandwich" is known also, consisting of the Netherlands holding and company, owning its actions from Netherlands Antilles. This chart is used for minimization of taxes at a source at the receipt of dividends from companies from the countries related to Netherlands by the agreements about the exception of double taxation. At dividend payment to Netherlands taxes at a source are small by virtue of such agreement, at payment o

for Antilles they are small by virtue of tax agreement between Netherlands and Netherlands Antilles. Besides the Netherlands holding is exempt from a tax on profits as dividends (at the observance of row of terms), and the Antilles company pays a tax on such profit on a low rate. As a result total rate of tax is lower.