Setup (Offshore) Companies To Minimize Tax

[affpartner]

- Own a house in the Netherlands and am therefore liable to pay tax there and supply my worldwide income to them and pay tax on it

Do you have a reference for this, i never heard of this rule.

According to Dutch tax law, if you own a house in the Netherlands you have to pay tax on it. However, since he says he lives full time in Thailand, he should qualify for paying less tax and should not be liable for income in Thailand. There is a double taxation avoidance rule in NL. You have to prove you are tax resident in another country. If you pay tax on your income in another country, Thailand or HK, you can declare that to the Dutch authorities and apply for "Tax equalization".

I did something similar. When I was on assignments in other countries, I got paid locally. OP should get a tax attorney in NL and explain the situation.

On second thought, why would have to pay tax on his world income if he is not resident any more in NL.

affpartner, ben je nog ingeschreven in het GBA?

Well, I am a dutchy, have a house and I pay nothing to the dutch taxman... I can't deduct the interest I pay on my morgage as well but if you do the math it works out way cheaper...

I opened a Dubai freezone company, from that company I send invoices the clients in Holland , all totally legal, no tax and anomynous..

Thanks, but then I guess you are still registered as living in Holland (dus NIET officieel uitgeschreven uit het kadaster) and/or choose to be "binnenlands belastingplichtig", don't rent out your house and still have to supply the Dutch government with your worldwide income. Correct?

[Khun Jean]

Maybe i can clear up a little about having a company in HK. It5 is not complicated at all.

I have one so i know what i have to do. documentation for the IRD is required.

You need an accountant and a secretary to prepare that for you. costs are for me max 1000 euro a year.

I proof that all income is from outside HK so i don't need to pay tax.

However if you have a BVI company that is domiciled in HK you don't need to do anything. the reason is that your company is not a HK company but a the BVI company!!!

I choose a HK company because everything is documented, it is fully legal tax optimization. And because it is fully legal it is nice to have the documentation to prove it!

As i said before my income is from a TH company and i pay income tax. This is very helpfull when you want a work permit or a visa. also when buying a car or other things that need documentation. yeah i also pay the Thai price at national parks.

edit:

I think Naam was correct in theory but in practice it works a little different (for me).

If you have no business activity in HK and earn no money from HK then you only have to declare that, and here is the catch, you might need to prove it!). So you still need to record everything in case HK requests it.

Edited June 27, 2011 by Khun Jean

[manarak]

However if you have a BVI company that is domiciled in HK

That is nonsense as written, but I guess you refer to a BVI company with its bank account in HK?

A BVI company with no bookkeeping is 100% legal too, and there is nothing to prove to anybody.

[Khun Jean]

However if you have a BVI company that is domiciled in HK

That is nonsense as written, but I guess you refer to a BVI company with its bank account in HK?

A BVI company with no bookkeeping is 100% legal too, and there is nothing to prove to anybody.

What is the nonsense part in the quoted part?

No i was not refering to a BVI with a HK bank account, but a virtual office address in HK.

This means that you can use your very suspicious BVI company with which many clients otherwise won't do business with, because they think it is a HK company.

One of the reasons i skipped the whole BVI and others alike.

[Nawtier]

well it is not domiciled in HK then I believe...it is still housed in BVI....but its office is located in HK only....not the registration and formation...therefore the domiciled or housed location.

[Giraf]

I'd love to do the Hong Kong setup. I think I could manage getting the businnes registered and travel there to get the credit card done, but ..

How on earth do you find an accountant and secretary in Hong Kong you can trust?

I've found Pricewaterhousecoopers who does this, but I bet their min charge is way too much for my simple business with a single invoice per month.

I guess you need to know someone.. Thanks to ALL of you for a nice read!

EDIT: I forgot to ask, are you allowed to sell to Hong Kong businesses while keeping profit from overseas tax free?

Edited July 10, 2011 by Giraf

[Giraf]

I plan to do what Khun Jean has done, unregister my home country address, move to Thailand and create a business and also register a company in Hong Kong.

My Thai company will hopyfully manage a hotel (with time) and also run a webshop catering to woman. The Hong Kong company will sell digital products like mobile games and music.

So as far as I understand, this is completely legal and tax free concerning the HK business, and I don't need to make any nominee director/shareholder as I don't need to hide?

I think it was manarak who said that, you've to wait 1 year to bring money from HK into Thailand after it has been earned, is that really true? That could be a little hard.

Thank you!

[manarak]

So as far as I understand, this is completely legal and tax free concerning the HK business, and I don't need to make any nominee director/shareholder as I don't need to hide?

I think it was manarak who said that, you've to wait 1 year to bring money from HK into Thailand after it has been earned, is that really true? That could be a little hard.

Yes, I said that.

In practice, nobody will check.

But in theory, you would just need to maintain a balance abroads, equal to your yearly revenues.

And if you don't have savings, I wonder if moving to Thailand is the right move

[muratremix]

Can anybody recommend a reliable agent / company for HK Offshore company setup? Including accounting and virtual office aswell.

[Giraf]

Yes, I said that.

In practice, nobody will check.

But in theory, you would just need to maintain a balance abroads, equal to your yearly revenues.

And if you don't have savings, I wonder if moving to Thailand is the right move

Thanks. I have savings of course, but I want to invest it all in multiple businesses in Thailand, so having some maneuverability with the monthly income from Hong Kong would have been good.

After thinking about this, I don't think it's for me.. maybe I should move there instead, I'd love to have macau and the poker tables so close

[SolarOhm]

The simplist way would be to establish a BVI company - do it through Hong Kong and have it's bank account there.

You need to use a nominee for the shareholding and directorships (so you do not appear on the Company register in BVI or at the Bank) for the bank account opening- and then take on the role of General Manager (so you become a bank signatory) - or a SPV (which is the best approach =. There are no reporting requirements or auditing

PM me if you want assistance as I have over a decade of experience in this area

[manarak]

I know the topic is a bit old, but this might be interesting for anyone who is planning to go offshore with an internet business (IMO the way to go for any webmaster who lives in Thailand):

http://www.webmasteroffshore.com

The also recommend the BVI company and include special options for webmasters

Edited March 4, 2012 by manarak

[olsen]

I know the topic is a bit old, but this might be interesting for anyone who is planning to go offshore with an internet business (IMO the way to go for any webmaster who lives in Thailand):

http://www.webmasteroffshore.com

The also recommend the BVI company and include special options for webmasters

Phew...that is expensive!

[olsen]

I heard that Hong Kong offshore bank accounts are being more strict? That it is now more difficult to transfer money out of the country?

Does anyone here have any experience in this matter?

[manarak]

I know the topic is a bit old, but this might be interesting for anyone who is planning to go offshore with an internet business (IMO the way to go for any webmaster who lives in Thailand):

http://www.webmasteroffshore.com

The also recommend the BVI company and include special options for webmasters

Phew...that is expensive!

I guess a company bank account and a special credit card come at a price.

[Naam]

I guess a company bank account and a special credit card come at a price.

especially if one uses an obscure agency for the setup of a corporate account with an obscure bank in an obscure jurisdiction, e.g. Latvia and the obscure agency mentions

• Account opening with the bank*
  
• Issuance of a power of attorney for the bank account*
  
• Online Banking*
  
• Credit Card bearing only the company name*
  

* subordinated to acceptance of the account by the bank

p.s.

Total recurring annual fees

max. 6600 USD = RIDICULOUS!

Edited March 5, 2012 by Naam

[manarak]

I guess a company bank account and a special credit card come at a price.

especially if one uses an obscure agency for the setup of a corporate account with an obscure bank in an obscure jurisdiction, e.g. Latvia and the obscure agency mentions

• Account opening with the bank*
  
• Issuance of a power of attorney for the bank account*
  
• Online Banking*
  
• Credit Card bearing only the company name*
  

* subordinated to acceptance of the account by the bank

p.s.

Total recurring annual fees

max. 6600 USD = RIDICULOUS!

I inquired, and........... Tadaaaa! Director and Bank are located in Switzerland

As they say it is a world top 20 bank, it does not take a rocket scientist to have a good guess which one of the two Swiss banks this could be.

And those agencies are all a bit obscure... you never know what you get until you pay and see.

But this offer is by far the clearest and to.the-point for webmasters I have seen so far.

Edited March 5, 2012 by manarak

[Naam]

As they say it is a world top 20 bank, it does not take a rocket scientist to have a good guess which one of the two Swiss banks this could be.

i am accepting any bet that it is neither CS nor UBS. both of them, like any other Swiss bank (no matter in which jurisdiction located) have since months raised the entry bar to previously unseen heights. of course the agency can claim anything because they are protected by their clause "subordinated to acceptance of the account by the bank"

But this offer is by far the clearest...

like the car dealer who offers to sell a car but refuses to mention brand and specifications?

[manarak]

As they say it is a world top 20 bank, it does not take a rocket scientist to have a good guess which one of the two Swiss banks this could be.

i am accepting any bet that it is neither CS nor UBS. both of them, like any other Swiss bank (no matter in which jurisdiction located) have since months raised the entry bar to previously unseen heights. of course the agency can claim anything because they are protected by their clause "subordinated to acceptance of the account by the bank"

But this offer is by far the clearest...

like the car dealer who offers to sell a car but refuses to mention brand and specifications?

ok, I didn't want to disclose as much, but I used their service and am the happy user of a CS account.