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The tax benefits are the key advantage of investing offshore. Some of the specific advantages include: i) income earned offshore may not be subject to tax, ii) tax is not deducted from interest earned, iii) potential of no capital gains or inheritance tax. |
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Offshore tax planning is an effective tool for strategic asset management. Below are practical uses for offshore tax planning: |
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| Offshore Tax Planning | Shipping Companies |
| Professional Services | Overseas Property |
| Investment Companies | Licensing Company |
| Double Taxation Treaties | |
Using an offshore company can legitimately minimise tax by
properly structuring financial and business affairs. A classic example of offshore tax planning is offshore
captive insurance companies. A major trading group establishes an offshore
company to insure its various risks and can thereby obtain tax deductions
on insurance premiums in its home jurisdiction while investing tax-exempt accumulated
premiums offshore. For more information, visit our Offshore Tax Planning Strategy page. Although there has been increased attention from governments regarding offshore taxation policies, effective tax planning does still offer legitimate ways in which businesses can minimise their international tax exposure. International tax planning opportunities include restructuring your company, taking advantage of the low corporate tax rate and various tax incentives of certain jurisdictions. |
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Using a coherent offshore tax planning strategy, a person working overseas limits his or her tax burden
by receiving, into the country in which he is working, a fixed level of remuneration. The balance is accumulated in a company. |
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| Overseas Property | |
An offshore company may hold the title of an overseas property. Sales of the property
are conducted quickly and easily by the sale of company
shares to the purchaser. This also saves legal fees and overseas transfer and
value added taxes levied by certain foreign countries. It can also be used
to successfully avoid capital gains and inheritance taxes. For more information on this offshore tax planning technique, visit our Asia Property page. |
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The offshore company invests in property, stocks and
shares, commodities and other assets, while providing anonymity and tax savings.
Funds accumulated can be invested or deposited anywhere in the world, although
the funds may be subject to the tax regimes of the countries in which the investments
are located. There are countries with tax-exempt bonds or bank deposits where
interest is paid gross. Healy Consultants advises of the most efficient solution to meet our client's offshore tax planning requirements. |
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This offshore tax planning technique takes advantage of double taxation treaties between offshore
jurisdictions, and the country in which an investment is made. For example, to see a list of some of the jurisdictions whose governments have signed such treaties with Singapore, please visit the Inland Revenue Authority of Singapore (IRAS) website. |
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| Licensing Company | |
To own trade licenses and royalty rights for which the offshore company
pays no tax itself on royalty receipts in the offshore jurisdiction. Our firm
advises companies on the sale of patents, technical know-how, and license and
franchise agreements to an offshore company, which is then owned by an offshore
trust. Upon acquisition of the rights, the offshore company enters into agreements
with licensees wishing to utilise the patents, technical know-how, licenses
or franchises around the world. The income, subject to applicable withholding
tax, is accumulated tax-free in the offshore company. By careful selection
of the jurisdiction, withholding taxes can be substantially reduced by the
commercial application of double taxation treaties. |
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Yachts or ships may be owned by an offshore company and registered
in an offshore jurisdiction which can prove a cheaper and more tax-efficient
method of ownership. For more information on this offshore tax planning method, visit our Ship Registration in Singapore page. |
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Contact Us |
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For further information on offshore tax planning, email email@healyconsultants.com or telephone us in Singapore at (+65) 6735 0120.
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Back To Offshore Company Formation page. |
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| © 2003 Healy Consultants Pte Ltd | OFFSHORE COMPANY SET UP SERVICES |