Opportunities in Dubai  Dubai is an interesting place for business owners. You probably noticed socialist trend that has been growing in recent years, all over developed world. Lots of people and politicians believe that nobody should be very wealthy, and that those who make big amounts of money should be taxed heavily (even more than…

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Tax Treaties  Tax treaties are introduced in order to avoid double taxation.   Let’s say that you have a company in Canada but are also doing some business in the USA, so you have an office there. So the USA will want to tax you because you have an office there, but Canada also wants to…

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International tax planning for Italians    Any time we look at international tax planning we want to pay attention to the three pillars of residency:    -Residency of the company. You will want to have a company that’s outside of the country in order to decrease the amount of tax paid.   Italy’s base tax rate…

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Participation exemption  Traditionally if you had dividends paid to you from a company that would be taxable.   Very often you’d have that company owned by another company and they would receive dividends tax free.   The question is what if that company was foreign?    Let’s imagine you have a company in Bahamas, and that company…

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Tax avoidance VS Tax evasion  Lots of people have misunderstandings when it comes to terms tax avoidance and tax evasion. They are not really certain whether those are synonyms or not.   Let’s make it clear – Tax avoidance and tax evasion are two different things!    Tax avoidance is fine, it is completely legal while…

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What is substance    Substance is getting more and more important. We witnessed tighter and stricter regulations is the recent years, and we can only expect it to go worse with time.    So what is actually substance?   Well, it means that you have something going on behind your structure.     Traditionally, the most popular…

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CRS and Automatic exchange of information Today we are talking about the advantage that Montenegro currently has that attracts people to come and bank here. What we mean here is automatic exchange of information and common reporting standards. Well, those will not be your issues if you are here.     In 2009. bank secrecy around…

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  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…

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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…

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What is Residency?    When we talk about residency for tax purposes and you only live and do business in one country the rules that apply are very simple.   If you are a resident of Canada (you live there) Canadian tax rules apply.   As you start to do business in multiple countries, have customers elsewhere,…

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