Example, the story of Jonathan | Reducing the tax burden thanks to a clever use of double taxation treaties.
Some fake consultants on the internet would like at all costs to sell you foreign citizenships that you don't need, but there are actually simpler and more affordable ways to greatly reduce your taxes.
One of these ways is to cleverly use double taxation treaties, which, unlike other consultants, an international tax lawyer is able to use to clear your taxes, without resorting to tricks such as the unnecessary acquisition of foreign citizenships.
Today we make a simplified example of this mechanism.
Jonathan does business in the United States, but through an offshore company based in Cyprus.
Jonathan turns to expert international tax lawyers, first of all to make sure that it cannot be argued that he has, technically, a fixed place of business in the United States, nor acts as an agent, elements that would be decisive for integrating a so-called permanent establishment.
Now, the earnings from the business will pass into the Cypriot company with very little or no US tax, under the double taxation treaty concluded between the two jurisdictions, as long as the Cypriot company is resident in Cyprus.
This is unlike what would happen if the company were located in a jurisdiction without a tax treaty with the United States, which could make profits bear a US tax rate of up to 35 percent.
But not only this.
Now that the earnings have flowed into the Cypriot company, they could be withdrawn without any Cypriot tax by a person who is not a resident of Cyprus.
Obviously, only an international tax lawyer is able to develop this type of mechanism, so always be sure not to turn to scammers or other untrustworthy subjects.
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Remember that laws change all the time and this article may not necessarily take into account the law in force at the time you are reading it; therefore it is essential to contact an international tax lawyer in order to check the law in force when you decide to relocate or move abroad.
It is always very important that you speak to your international tax attorney before starting any type of tax planning or relocation of your business.
Do not hesitate to contact us if you would like us to provide you with the contact information of highly qualified international tax lawyers who are specifically qualified to help clients in your situation.
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Contact us: https://yourinternationaltaxlawyers.net
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