........e-business opportunities for offshore companies
| ........ |
e-business opportunities for offshore companies |
|
|
Tax Free Trade | Cyberspace Tax Firewall | The Cyberspace Station | You can be a tax-free global e-business person as the proprietor of an Internet Site in Vanautu's Internet Free Trade Zone. What is e-business? Tax Free International Trading If you are involved in trading on the Internet, or international import and export of goods or services, e-business Incorporated can maximize your cross boundary e-business profits. Your Internet based company can be domiciled anywhere in the world. If your central trading company is located in Vanuatu's Internet Free Trade Zone, your profits will not be subject to taxes. This gives you an unprecedented commercial edge over competitors located in high tax jurisdictions. e-Business Incorporated provides you with a unique opportunity to take advantage of this trading possibility in a secure environment of known trading partners. You can begin your e-business from the Internet Free Trade Zone as soon as you have obtained a Vanuatu International Company. e-Business Incorporated will help you integrate your offshore company into a trade-network of international companies that want to buy or sell products or services over the Internet everywhere in the world. The Cyberspace Tax FirewallFinancial deals done in cyberspace raise difficult questions for taxation. For example, suppose a resident of Singapore finds a bank on the Internet that allows a potential customer to fill out a form and open an account. The bank offers a number of advantages such as easy access via the Internet, access by other family members anywhere in the world, payments by writing checks, and an ATM debit card that can withdraw cash anywhere in the world. Is the bank doing business in Singapore even if it has no physical office there? Under Vanuatu's new Electronic Transactions Act of 2000, transactions are domiciled in Vanuatu if the payment page is located on a computer in Vanuatu. Although these laws are very strict in forbidding adult or obscene material and illegal activities such as money laundering, there are no taxes levied on honest trading activities. Internet gaming is actively encouraged. Trading companies buy from one party and sell to another unrelated party. An offshore based trading company can enter into various contracts with customers and suppliers, and close the deal in cyberspace. For example, bonds are purchased in London and sold in Hong Kong by a Vanuatu company acting for an association of financial partners scattered in a dozen countries. So long as the actual financial transactions take place on the Vanuatu based Internet site, the Vanuatu law states that the business is done under Vanuatu jourisdiction. Modern manufacturing operations span many political jurisdictions; a computer chip manufacturer in Hong Kong, a subsidiary of a US company, subcontracts the basic chip assembly to a Korean company. It supplies technology to the Korean company that was developed in the US. Quality is controlled by Hong Kong specialists. The Korean company may use equipment provided by the Hong Kong company. Raw materials are provided by the US company. Which country gets to tax how much of the chip manufacturing profits? The various tax offices will be looking very closely at every stage of the operation to assure there was no unfair transfer pricing involved and the profits are taxed appropriately in their respective jurisdictions. Now, suppose the trading company developing the product is located in Vanuatu. Currently, each tax office in each country can only tax the local partner for the share of profits earned in their own jurisdiction and so long as each partner is "arms length" from the Internet trading site, the profits earned by the Vanuatu corporation is, under the Vanuatu Electronic Transaction Act, legitimately tax free. e-Business Incorporated, can help you get launched into a profitable future in cyberspace, but first, visit the Vanuatu office of Moores Rowland, a large international accounting firm, to set up your International Corporation.
Go To | Reception | Introduction | ebusiness defined | Links | Contact |
|
