Here is how you explain international tax optimization to your children
International tax optimization is when a company or person makes sure they pay the lowest amount of taxes possible by using different laws and rules in different countries. It's like trying to save money on taxes by finding the best deals, just like how you would with shopping for clothes.
A couple of examples:
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A company based in country A wants to sell its products in country B, but country B has a higher tax rate. To avoid paying the higher tax rate, the company sets up a subsidiary in country C, which has a lower tax rate. The company then sells its products to the subsidiary in country C, which then sells the products to customers in country B. This way, the company only has to pay the lower tax rate in country C instead of the higher tax rate in country B.
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A person who lives in country A but has money in a bank account in country B. The person can use legal methods to structure their finances in such a way that they pay less tax in country A, by taking advantage of the tax laws and regulations of country B.
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A company based in country A wants to invest in a new factory in country B, but country B has a high corporate tax rate. To avoid paying the high corporate tax rate, the company sets up a holding company in country C, which has a lower corporate tax rate. The holding company then owns the factory in country B, and the company in country A only pays the lower corporate tax rate in country C.
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An individual who lives in country A but has a vacation home in country B. The individual can use legal methods to structure their finances in such a way that they pay less property tax in country B, by taking advantage of the tax laws and regulations of country A.
But if they are only 8...
International tax optimization is like trying to save money when you buy something. Just like how you might look for the best deal on a toy or a game, companies and people try to find the best way to pay less money in taxes.
For example, imagine you want to buy a toy at a store, but the store is charging you $10 for it. But, you found another store that is selling the same toy for $8. You would want to buy the toy from the store that charges $8, right? This is similar to what companies and people do with taxes. They try to find a way to pay less taxes in one country by using the laws and rules of another country where taxes are less.
Imagine you have a piggy bank filled with coins and you want to save as much money as possible. Now imagine that you have two jars, one of them is labeled "A" and the other one is labeled "B". The jar labeled "A" has a bigger hole and money will fall out faster than the jar labeled "B" which has a smaller hole.
You want to save as much money as possible, so you decide to put your piggy bank money in jar "B" because it has a smaller hole, so less money will fall out. This is similar to what companies and people do with taxes. They try to find a way to pay less taxes in one country by using the laws and rules of another country where taxes are less.
HOW CAN YOU USE OUR SERVICES?
If it is your first time, here are some examples of the results our tax lawyers can help you achieve:
- international tax optimization, to cut down your taxes (even to zero)
- analyze your specific situation and your business situation to help you choose the best country/countries for your specific needs, which guarantees you both tax savings and everything you wish for;
- protect your assets, making them "untouchable";
- become an international / global entrepreneur, able to use all world regulations and tax advantages to your benefit;
- making you profit using tax havens;
- acquire multiple residences;
- acquire new passports;
Check our main page now and contact us https://yourinternationaltaxlawyers.net