On 21 Jan 2010, at 01:22, certainlysteve wrote: > Anyone have knowledge of offshore incorporation in so called tax havens? > > As I understand it, a web based software business is well suited to such a > venture because it doesn't necessarily sell exclusively in one's home > country. Offshore companies can have low to zero corporate tax rates. > > However money paid to you, as a salary, is almost certainly taxable in your > country of residence. > > The bigger problem, I hear, is that most western countries, particularly the > US now, will tax your company if you have deemed control of it regardless of > where it is located. > > Anyone have thoughts if a software industry offshore company is viable in > today's business climate?
A business is normally considered resident where its management and control is taking place, which is usually where the majority of its directors live (unless you can show that you actually travel to the offshore jurisdiction to manage the company and to make business decisions). It's doable through nominees but it comes at a quite high cost. It's probably not viable for a small software company.
