A guide to tax planning vehicles
This type of company is used for tax planning and structuring, offering to minimize the overall effective taxation.
The company pays a low rate of tax (1.5 to 3%) on its profits and situated in a jurisdiction where there are no withholding tax and no capital gains tax. By using the double tax avoidance treaties, it minimizes the overall taxation. Each solution needs to be structured according to the country where business is to be conducted, as well as the resident state of the beneficial owners.
- Tax planning
- Tax Minimisation
- Repatriation of profits by reducing the tax liabilities
- Low rate of tax (1.5 % or max of 3%)
- Tax minimisation and planning
- Avoidance of double taxation
- Confidential vehicle
- No capital gains tax
- No withholding tax on repatriation of profits (dividends)
- Mauritius GBC – between 0 and 3% tax
- Seychelles CSL – flat 1.5% tax
- Only in resident state but at a reduced rate, as per the treaty between the two countries