The Benefits of Going Offshore

The International Business Companies (IBC) Act was passed in 1996 and provides for the registration of offshore companies in Dominica. International Business Companies in Dominica are guaranteed a minimum of 20 years of no taxation. Offshore companies are generally used as a legal means to minimize taxation.

Offshore companies can be used as a means to avoid the payment of taxes such as Inheritance taxes. When assets and wealth are placed in an offshore company there is no inheritance tax applied to these assets when inherited by a family member or individual upon the death of the previous owner. Some countries impose high inheritance tax rates therefore it is very beneficial to persons who own lots of assets to transfer them to an offshore company where under legislation it remains untouched.

Dual citizenship and dual nationality are often a safeguard against unknown misfortunes. This is also a means of finding business friendly countries and favorable corporate taxes for business investment. Dominica Citizenship by Investment encourages real estate investments in the island, which presents may ecotourism opportunities and the chance of owning a second home. Dominica offers significant benefits when it comes to establish a new residence. As a citizen of the Commonwealth of Dominica there is the opportunity of visa free entrance to the countries that are members of the Organization of Eastern Caribbean States (OECS). Dominica citizenship by investment and St. Kitts dual citizenship do not limit residency options to the Caribbean region only. In fact, these citizenship help to ease settling in certain countries with which there are excellent diplomatic relations.

Capital gains tax is charged on any capital gain. This tax is charged on the sale of assets such as stocks, bonds and property. The capital gains tax in charged on the profits made in the sale of assets. Capital gains tax are generally high and not to the advantage of the business person. With good tax planning or the use of an offshore company these high taxes can be avoided. Most offshore jurisdictions do not apply such taxes to offshore companies so the sale of assets can be carried out to the advantage of the owner. When offshore companies are used for the sale of assets or property there is no tax paid therefore the owner makes maximum profits on the sale.

Offshore companies can be utilized to facilitate international trade. In international trade an offshore company registered in Dominica can buy goods in another country and sell it to a buyer in a third country. By using an offshore company there is no tax charged since the company is not registered in either of the two countries. This encourages maximum profits as the offshore company owner has no taxes to pay on the profit realized.

The protection of property is made possible with the use of offshore companies. The owners of assets (stocks, shares, real estate, among others) can transfer ownership to an offshore company. These assets are no longer registered in the name of the owner. The assets now belong to a business entity and are safe in situations such civil suits brought against the owners and professional negligence.

Offshore companies seek to provide clients with the means to protect their wealth and property from heavy taxation in a safe and confidential manner. Offshore companies are good vehicles to use when planning taxes.