In general, the advantage of offshore schemes is to reduce taxable income and maximum income from operations. When working with an offshore company subject of taxes and fees is only the part of income which is received in the State in which the company is registered. If the source of income is abroad, these financial flows are not subject to taxation.
One of the most popular and widely used offshore schemes is the scheme of services. The main tools in this scheme are the service agreement - consulting, IT, marketing and other. The scheme of service starts with the entry of the company into a contractual relationship with an offshore company. After that, the act of signing a two-way on the work performed and billed. All expenses incurred for payment of services offshore company the firm has the right to refer to the cost of production and include in gross expenditures. This reduces taxable income and basic income focuses on offshore accounts and is not a focus of attention of tax authorities.
Currently, developed and successfully operated a sufficiently large number of offshore schemes. Periodically, they are adjusted to reflect changes in legislation and take into account any government attempts to limit tax services for businesses the use of tax optimization schemes. Each firm chooses a most appropriate offshore schemes, based on the scope of its activities and financial assets.
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