Before we start with the list of countries, it’s important to note that lots of these countries have corporate income tax, but today we are focusing on personal income tax. Many of these countries will have social security, they may have payroll taxes, VAT (Value added tax), property taxes, etc. Just because they have zero…
Types of companies If you’re doing business internationally this topic is quite important to understand. We will try to explain and simplify all the types of companies, so you get a better understanding of what are you looking at when you decide to form a company. We’d say that there are typically three major types…
Today we will explain everything you need to know about non-resident companies, and how you could use them to reduce your taxes. Recently I had a conversation with some people about companies in Cyprus. They asked me ‘’Why do so many people go to Cyprus, doesn’t Cyprus have taxes?’’ Well, yes Cyprus certainly has taxes,…
We encounter many people who think they have an awesome idea about how to reduce taxes. ‘’You know, it worked for my friend. It’s quite simple’’, they often say. The little they know is that what they’re thinking about is not legal, and could potentially do more harm than good. There are plenty of articles…
In our previous article, we talked about asset protection. We mentioned the corporate veil. A brief history of corporations Historically there were no corporations. Corporations have their origin in Holland. At the time there were ship expeditions that would carry goods back and forth between India and Europe. Clearly, you would have people who finance…
Today we will talk about what are trusts, how they work and which are benefits of using trusts. What is a trust? Trust is commonly confused as being a corporation. Trusts are not like corporations, they’re not legal entities per se. They are instruments, relationships between various parties. Historically, trusts come from the time of…
IRS Form 5471 is a tax form for foreign companies owned by US persons. In most cases, form 5471 applies to US citizens and residents who own foreign corporations. It does not matter which country a US person lives in. If that person owns stock in a foreign company as a director or officer, then…
IRS Form 5472 is known as Information Return of a 25% Foreign Owned US Corporation or a Foreign Corporation Engaged in a US Trade or Business. As the name of the form suggests, it is for US businesses which have at least 25% of foreign ownership and are involved in a US business or…
Form 8865 is a form related to Tax Returns for Foreign Partnerships. It is to be filed annually by all US citizens and legal permanent residents who have an interest in a foreign partnership. According to the IRS, a partnership is a relationship that exists between two or more people who come together for the…
In this particular video, we are not talking about Cypriot residents. Their situation with taxes is generally very good, so lots of times they don’t really need to go internationally in order to improve their situation. It’s the other way around – people come to Cyprus to set up a company in order to take…
