Maximizing Your Business Profits with Offshore Taxation Services

A double taxation treaty refers to an agreement between two countries or jurisdictions that are designed to:
• Prevent discrimination against UK business interests in other jurisdictions while providing protection against any form of excessive foreign taxation.
• Provide certainty of treatment pertaining to corporations engaging in cross-border trade and investments.
• Protect business owners and corporations against the threats posed by double taxation in a scenario where one income is taxable in two jurisdictions.
• Encourage a transfer of skills, technology, and inbound investment by eliminating excessive sources of taxation.
• Foster diplomatic relations with another country or send a message of willingness to integrate international tax norms.

The rules for sending a tax return are complex, but a corporate tax planning consultant can guide you through the requirements. In the UK, for example, a resident must send a tax return if any of the following statements apply to them or their business activities:
• You earned £100,000+ between 6th April last year and 5th April this year
• You worked as a sole trader and earned £1,000+ before making any deductions
• You were involved in a business partnership
Additionally, you may also need to submit a tax return if you happen to have any untaxed income, e.g.,
• Foreign Income
• COVID-19 support or grant payments
• Income from dividends, investments, and savings
• Tips and commission
• Money from leasing property to tenants and other businesses
Please note that an international tax accountant from FormationWise can help you to gain a better understanding of all this if you’re unsure of whether you qualify or not.

Tax compliance refers to a personal or business decision to comply with all the sales tax registration laws applicable in a given jurisdiction. One crucial factor to note is that tax laws tend to vary at the state and federal levels.
Moreover, these laws can vary from one jurisdiction to the next. For example, some countries may have high sales taxes while others may not charge property taxes. Therefore, no matter the laws enacted by the authorities, tax compliance relies on the citizens to abide by the laws.
Three indicators are typically used to measure voluntary compliance with tax laws:
I. Filing compliance – filing a tax return
II. Reporting compliance – it’s the difference between the amount declared by a person or a corporation and the amount it owes the taxman
III. Payment compliance – it deals with the payment of all the liabilities declared when filing returns

Typically, all accountable persons must register for VAT. Businesses or individuals undertaking non-taxable activities or exempt-only activities don’t have to register. On the other hand, those undertaking exempt activities may have to register in exceptional circumstances, such as:
• Receiving services from abroad
• Acquiring goods from member countries
When it comes to corporations, it’s possible to reclaim VAT on the start-up costs if you have just set up the business but are yet to supply any taxable commodities. But for you to do this, you’ll have to register for VAT.
Completing your registration enables your company to obtain credit for VAT on all the purchases it made before it started trading. In most cases, traders whose returns are below the VAT thresholds put in place by the authorities aren’t typically obliged to register.

Yes. FormationWise will provide you with offshore accounting and auditing services that will help your business to expand to new jurisdictions in no time. Its team of highly experienced in-house accountants will handle all your taxation, internal audit, and accounting needs.
The FormationWise accountants can help you meet your accounting needs in several ways. They can assist in setting up an accounting system for your business, auditing your books, maintaining your financial documents, and creating financial goals for the business.
Its team of tax advisory consultants understands that not all business owners are familiar with recording transactions, debits, and credits. For this reason, the team offers a suite of services, including payroll processing, offshore bookkeeping, and debt monitoring.
To facilitate its work, the accounting team works with leading accounting firms in all the jurisdictions where it operates to ensure its compliance with local regulations. It’s its way of ensuring its clients get the best services possible.

An international tax consultant can help your business to minimize its tax liabilities, manage its tax situations, and capitalize on available tax deductions. Tax consultants have more extensive knowledge of tax matters than standard tax preparers and can help with issues such as:
• Inheritance matters
• Tax preparation and planning
• Charitable giving
• Estate tax and other complex tax requirements
Most international tax consultants have received training in accounting or tax laws. The fees charged for their services will vary depending on their skill and experience and the scope of work involved in filing your tax returns.

A tax audit occurs when HMRS or the respective jurisdiction’s tax authorities decide to look at your returns more closely. An audit is meant to help the authorities verify that the income and deductions noted in your returns are correct.
The authorities often choose to conduct an audit when some of the expenses you listed on your return prove to be out of the ordinary. If they decide to proceed with an audit, they can do a full enquiry, an aspect enquiry, or a random check.

A tax haven refers to a jurisdiction that provides foreign individuals and businesses with little to no tax liabilities for their bank deposits. These havens are countries that have economically and politically stable operating environments.
Corporations love them because they have many tax advantages, allowing them to operate without paying excessive taxes. The same holds for the extremely wealthy, many of whom do it for tax avoidance purposes.
Wealthy individuals can use tax havens to legally stash money they have earned abroad while avoiding paying taxes in their home countries. However, others can use them to hide money from the taxman illegally.

Suppose you’re operating an offshore bank account in a jurisdiction that has a lower tax rate. In that case, you may have some concerns about its legality and potential to attract penalties from HMRC. But despite their potential for illicit use, these accounts are perfectly legal to operate.
If you declare your income as required, any activities you conduct using the account will remain within the law. Its use only becomes illegal if you’re operating the account for tax evasion purposes, in which case you’re liable to be investigated by the tax authorities.

No. Provided you supply us with all the documents we need, our team can handle your offshore taxation needs from any location. We will provide you with a list of the documents we need to prepare and file your taxes.
The only time you may need to travel to your chosen jurisdiction is when opening an offshore bank account. Banking officials will typically need you to schedule an in-person meeting before activating the offshore bank account.