Seychelles International Financial Centre
In order to gain a clear understanding of the advantages and opportunities that are provided by the specialized areas with a loyal tax climate (i.e. offshore jurisdictions), it is necessary to define the term of an offshore. Offshore jurisdiction is a territorial unit of a state, where international companies, which do not possess a tax residency status, are exempted from the various types of corporate taxes.
Each of these jurisdictions has its own specifics and is classified in the international law according to its type, level of taxation, and the procedure of financial reporting. Thus, the main advantage of the international offshore companies is the possibility of entering the international financial and investment market at minimal expenses.
International companies and offshore business in Seychelles
The rates of the state taxes in Seychelles mostly depend on the size of the profits, and the overall cost of the goods influences the choice of the appropriate pricing policy. Based on these facts it becomes evident that it is much more profitable to take the advantage of an offshore jurisdiction in Seychelles. Offshore companies may also provide certain additional services, which will be included in the overall cost of goods. It results in the reduction of the charged taxes and increase of incomes.
Such modern offshore jurisdictions as Seychelles and Mauritius, have appeared relatively recently on the international financial scene but have already gained a reputation of reliable business centres with wide opportunities for international business. Seychelles is considered to be a well-regulated offshore zone with a favourable reputation.
Besides, the financial assets, which are accumulated in the Seychelles offshore jurisdiction, can be transferred to any bank account in the world. It is possible owing to the lack of state currency control and restrictions on the repatriation of profits. In this case, the earned incomes are taxed based on the rules of the fiscal law of the country where these assets are transferred.
Seychelles: benefits in terms of taxation
It is not a secret that the registration of a banking institution on the territory of the Seychelles offshore jurisdiction greatly facilitates the process of licensing banking activities. Moreover, it allows optimizing the taxable base and eliminates the risk of reducing the provided range of banking services. As the result, the process of carrying out all the activities of a banking institution is simplified to the maximum.
In practice, the Seychelles offshore companies are often used with the purpose of registering and using bank cards abroad. The process of carrying out economic and commercial activities of the company involves provision of certain financial statements. However, there are some advantages for the owners of the offshore companies, in particular:
- All the personal banking operations can be carried out via a corporate account of the company;
- There is a possibility to optimize taxation in the case of the active commodity turnover between some enterprises or companies.
Purchasing a ready-made company
There are certain advantages of purchasing an international company that is already registered on the territory of an offshore jurisdiction. Such a transaction allows prompt and efficient management of the assets and property. You can sell or rent out the property at the low tax rates and maintain the maximum confidentiality of the information about the owner of the property.
In addition, the procedure of renting commercial and office space is also simplified. For example, if the ready-made offshore company rents a real estate on the territory of Russia, such a transaction may be exempted from taxation. Offshore companies must undergo the appropriate state accreditation in order to be able to reap the tax benefits when renting a property.
It should be noted that the Seychelles offshore companies gain an opportunity to perform the functions of the transport companies as well as own ships, aircrafts and other means of transportation. For this purpose, it is enough just to use the offshore company as an international carrier.
Advantages of buying a shelf company and the permitted activities
International trade and commercial operations – if using offshore schemes for carrying out international trade activities it is possible to increase significantly the volume of profits comparing with the similar enterprises operating in other countries. Usually, the level of profits is calculated based on the difference between the cost of purchasing a product and the cost of its selling. In this case, incomes are increased by means of optimizing taxation.
Activities of the clearance companies — offshore schemes are used with the purpose of expanding zones of influence of the clearance companies and in order to facilitate the financial settlements. In this case, the transportation of goods is carried out in the main territory of a country, and the financial settlements are carried out in an offshore jurisdiction. Such a scheme allows optimizing taxation.
Participation in the stock financial markets – if an offshore entity is involved in the trade in assets and securities via brokers of the tax jurisdiction of Seychelles, only the received dividends are subject to taxation.
Investment funds – registering an offshore company with the purpose of participating in the investment funds allows optimizing the taxable base to the maximum and reducing the insurance risks. The reduced tax rate is a great opportunity to accumulate financial assets by means of the investment funds and to move the assets into the offshore jurisdiction using the insurance contracts.
Implementation of the intellectual property right — disposition and owning intellectual property in the jurisdiction of Seychelles eliminates the risk of losing incomes and paying taxes in home country.