Tax Planning Practice Case

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Tax Planning Practice Casexuxiang 0

Under the current wave of anti-tax avoidance, the Common Declaration Guidelines (CRS), which is known as the global version of the fertilizer policy, will continue to be on the road, and the money-laundering prevention will become more and more strict for the fund control review. In the future, the traditional tax-free overseas company operation space is bound to be inevitable. Compressed, therefore, in the direction of tax operations, it should be operated in the direction of low tax or overseas exemption.

Low tax function

For example, using Hong Kong/Xinjiapo's overseas exemption from extremely low taxation characteristics, it is the main direction of future tax operations to conduct account declarations, adjust fund operations, and pay relatively low tax burdens in conjunction with relevant laws and regulations.

Tax concession function

Usually, such large-scale companies or listed companies will use such plans. Because the amount involved is very large, and the investment of each country (including overseas companies) needs to be publicly accounted, it is easier for a large company with a senior accounting staff or accounting background to understand its structure and differences. It is easy to obtain tax revenue from it. In the case of overseas foreign investment income or consultant income from each country, a dividend or a consultant fee is required to be paid out with a Withholding Tax, which is 30% in the US. 20%. If the fake stock has a double tax treaty DTT (DoubleTax Treaty), the temporary withholding tax can be as low as 10%, 5% or 0%, so choose a low tax rate country as the invoicing party of the investment buyer or consultant company. It is very important.

Take Hong Kong companies as an example. As a result, the company will invest in other entities in China. In the future, the mainland's surplus remittances can enjoy a temporary deduction of tax halving. However, the Hong Kong company itself must have an account in the local area to declare and pay taxes.

In addition, if the company is listed in Singapore, the company established in the first three years can enjoy tax concessions. The average tax rate of the first 300,000 SGD taxable income is 5.7%. At the same time, if the Singapore company has a local tax return, it will transfer to the East Association member country. Discounts on tariff reductions are available.

Under the current wave of anti-tax avoidance, the Common Declaration Guidelines (CRS), which is known as the global version of the fertilizer policy, will continue to be on the road, and the money-laundering prevention will become more and more strict for the fund control review. In the future, the traditional tax-free overseas company operation space is bound to be inevitable. Compressed, therefore, in the direction of tax operations, it should be operated in the direction of low tax or overseas exemption.