Private client - Tax planning
© Corbis 2003
The investor should take advantage of the tax planning process, allowing to increase safety and confidentiality of the assets, as well as to save, legally, on taxes. This can be achieved by the use of a Seychelles company orof a non-resident Mauritius trust as well as a Jersey foundation. Tax planning is a wise choice for the crisis period, as any money saving and cost reduction is mandatory. Double taxation treaties between two jurisdictions, including the residential one of the investor, will lower taxes.
Tax treaties: double taxation treaties have many applications, some for the private individual, and other for the company. The investor and the business benefit from a wise choice to attain the low tax objective, without risk. This is applicable in Europe, North and South America, Africa, Asia and Oceania. In the absence of any double treaty for a specific use, the use of an offshore company, holding, trust or foundation will ease the process and lead to the tax planning solution. Another option from EUR250, 000 of assets is to use a dedicated fund under the law of Luxembourg.
Tax planning and relocation of the taxpayer: international tax optimization can be applied by relocation of the country of residence. Switzerland could be used with the lump sum tax scheme, which is based on the expenses instead of the incomes and necessitate of wealth of EUR5 million or more. An alternative for the European citizen is the economic project with a relocation in Switzerland with local structures. Mauritius is another good spot to relocate with a tax treaty in force. The assets could be managed in Geneva with a Mauritius company and the income taxes are being paid in Mauritius at the residual rate of 3% for the concerned jurisdictions. An alternative is the IRS scheme (Integrated Resort Scheme) which consists to buy a real estate property from EUR500,000 value, and a residence permit is delivered by the Mauritian authorities.
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