offshore bank accounts

What if you form a foreign corporation, and bank out of another country? Aren't the tax laws more lax under those conditions/ Can't you make a fairly sizable amount of money, and not be required to pay taxes on it under those conditions?

I think you can make as much as $80,00.00 of untaxable gains, if I am not mistaken.
 
The Controlled Foreign Corporation rules come into play. I think it is now higher than $80,000 but the exemption (if that's the right word) you are speaking of applied to Americans who live and work overseas not those who angle it from here!

Quote from Spear Point:

What if you form a foreign corporation, and bank out of another country? Aren't the tax laws more lax under those conditions/ Can't you make a fairly sizable amount of money, and not be required to pay taxes on it under those conditions?

I think you can make as much as $80,00.00 of untaxable gains, if I am not mistaken.
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Spain or Portugal will let us wake up at noon, have breakfast and a swim and then trade the open. We won't even need a siesta!!

Quote from Spear Point:

Well, Costa Rica is starting to look mighty good to me!!
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Quote from Runningbear:

If you already have an account in Hong Kong, you'd know that Hong Hong companies pay some of the lowest corporate tax rates in the world. It's like 10% from memory. Given the recent high profile tax evasion cases that have occured in relation to swiss accounts, you need to ask yourself if its really worth the risk to save yourself that last 10%.

Jail time is a very real possibility if you're prosecuted for tax evasion.

You're better to stick with a low tax jurastiction like Hong Kong that draws no attention whatsoever.
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Corporate tax is actually more than 10% in HK (up to 17.5% ?) but becomes nihil for income derived outside of HK ( expect to be this claim challenged by the HK tax department though :mad: ). This includes capital gains in financial markets as well, individuals don't need to pay tax on cap gains but HK companies need to declare them as income - if they are derived from HK stock markets -I guess it also works like this for futures. No witholding tax on dividends

If all one needs is a corporate bank account in HK, it's much less trouble to use an offshore company from an even more business friendly juridiction and than open a HK based bank account for that offshore company - it should avoid them quite a bit of aggravation linked to HK companies and it's easy to set up. IB in HK will open accounts to corporations based abt anywhere in the world, but the company beneficiaries still need to identify themselves and fill w8ben.

One of the plus of the HK company is that HK is not considered a tax haven and has signed a bunch of tax treaties with develloped countries, in Europe those include at least Belgium, UK, France and luxembourg . One definetely needs to take legal advice but there are tax saving oppurtinities using an HK set up.
 
One note about HK, and especially HSBC - if not transferring money from another HSBC account, wire transfers are hit with insane intermediary bank fees - up to 72 euros and 50 gbp - things have gotten much worse over the last 18 months IME and investigating the matter has proven quite frustrating.

IB is using various Citibank accounts worldwide, so it's probably better to open a citibank account if one plan to wire money in and out an IB account.

A of Switzerland, I wouldn't trust the country much in matters of bank secrecy any more - but it's still a great place to visit/live in.
 
1. all these foreign offshore companies are NOT allowed for US citzens.
You'd probably be rejected opening up a simple bank account while presenting your "US PASSPORT" aka TAX EVASION indicator.


2. non-US citzens, don't need offshore companies.



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In other words, enjoy your gold handcuffs US citzens!
<i>Oh, say can you see by the dawn's early light.....</i>
 
Quote from econometrics:

where do you guys open offshore bank accounts? i already have accounts in Hong Kong, Japan, and Singapore.

I am considering opening one in Luxemberg and Seychelles
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You will get in trouble if you have an offshore bank account.
 
Quote from cooolweb:


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2. non-US citzens, don't need offshore companies.



=========


In other words, enjoy your gold handcuffs US citzens!
<i>Oh, say can you see by the dawn's early light.....</i>
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So the Germans and other EU citizens shift their swiss account to SG and HKG just because they love the local food?
 
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