MINISTRY OF AGRICULTURE OF THE RUSSIAN FEDERATION
FBGOU VPO "KAZAN STATE
AGRARIAN UNIVERSITY»
Department of Finance and Credit
ABSTRACT
FOR THE DISCIPLINE "FOREIGN INVESTMENTS"
On the topic: Offshore operations
Is done by a student
Full-time education
groups 6823
Walter N.Yu.
Kazan 2012
1. Offshore operations.
OFFSHORE is not a legal concept, but rather an economic and geographical one. Offshore is either a figurative designation of a territory or object belonging to a state, but located behind its coastline, or it is a collective definition for a special type of tax-free or low-tax companies registered in countries that have legalized such a practice.
In general, any foreign enterprise can be called offshore in relation to its owners and directors who are not tax residents of the company's country of incorporation.
In most countries of the world, individuals and legal entities are subject to taxation if they have the status of a resident in these countries. With the status of a tax resident of an individual, everything is quite simple. In most countries of the world, an individual automatically becomes a tax resident if he permanently resides there for more than 183 days. What makes a company (legal entity) a tax resident? The resident status for a company was first considered by an English court in the 19th century and ruled that a company would be considered a resident where it maintains a registered office from which the directors of the company, permanently resident in the same country, centrally manage and control the business of the company.
This decision automatically extended to all former British colonies, which for the most part are traditionally offshore jurisdictions. 200 years have passed, most of the colonies have become independent states, but the legal principle remains unshakable for most countries modern world, and today this approach provides for foreign companies various options, for example:
- a company can be registered, for example, in the Seychelles or the British Virgin Islands, but not be a resident there, provided that the shareholders and directors are not residents of the country of incorporation of the company, the company's business is conducted outside the jurisdiction of incorporation, and no income is derived by the company inside the country registration. Subject to such conditions, such a company does not pay any income or other corporate taxes in the country of registration;
- a company may have a registered office, say, in Gibraltar or Hong Kong, be managed by local or foreign directors, but be owned by non-residents of the country of incorporation. These companies can also obtain the status of so-called tax-exempt companies, provided that the company will only do business outside the country of incorporation, and no income will be derived inside that country;
- the company can have a deployed office, let's say in Austria, Great Britain or the USA, be managed by local or foreign directors and belong to non-residents of the country of incorporation. Such companies are tax residents and are subject to full taxation even though the company's business is carried out only outside the country of incorporation and no income is derived inside the country of incorporation.
The above examples show different approaches to the concept of "tax resident" in different countries, and, of course, when you are doing an offshore business and conducting certain offshore operations, you need to constantly monitor and immediately respond to any changes in the current legislation, which is completely natural seeks to limit the ability of taxpayers to "flexibly manage" their funds.
As a special example of a “tax resident”, it is necessary to note such an organizational and legal form of an enterprise as a partnership. Being a legal entity in most countries of the world and essentially no different from an ordinary company, a partnership is not considered a subject of taxation in some countries, and all partnership income is attributed to the partners’ personal income, which makes partnership a very attractive tool. So, for example, in Denmark, a partnership is not subject to taxation, provided that the partners are non-residents of Denmark, the directors are outside the kingdom, and all the income of the enterprise is derived outside of Denmark.
However, it should be clearly understood that the tax benefits granted to a foreign company in the country of incorporation are territorially limited. The existence of incentives does not mean that the company should not pay taxes elsewhere, or that partners (based on the above example) should not pay taxes where they themselves are tax residents. Naturally, partners can be not only individuals, but also the same offshore companies.
Currently, many investment transactions involving partners from different countries are carried out as part of offshore operations related to offshore activities, which are any officially permitted commercial activities through enterprise banks, etc., registered in offshore zones and centers.
In the modern world economy, offshore centers are small territories or states that have an extremely favorable regime for registration, taxation and financial transactions for foreign companies and banks.
Unlike offshore centers, offshore zones are not entire states, but part of the territories of individual states with preferential tax, currency, customs or administrative regimes. If offshore centers mainly include developing countries, then offshore centers are created mainly in developed countries - the USA, Switzerland, Great Britain, etc. In general, in the literature, the concept of "offshore center" is often used in relation to both offshore centers and offshore zones.
The history of offshore business began in the era of colonial rule, when private companies and their employees from the metropolitan countries were excluded from the jurisdiction of the colonies where they operated. Although this regime disappeared with the collapse of the colonial system, over time it reappeared in the form of offshore centers and zones, most of which were located on the islands, i.e. “at a distance from the sea coasts” (in English: off-shore) of the leading financial centers of the world.
The creation of offshore centers in certain regions is due to two main factors: proximity to the centers of business activity and the lack of internal resources for development in states. For the first reason, offshore centers were created in industrialized countries - the USA, Canada, Great Britain, the Netherlands, Switzerland, etc. The second reason led to the emergence of offshore centers in the rest of the states of the Atlantic and Pacific Ocean, which deliberately went to the adoption of legislative acts that facilitate the attraction of foreign investment . For some countries, income from offshore business is the main source of financial resources.
The rapid development of financial business in offshore centers in recent years has been the result of the introduction of the latest information technologies, which allow establishing and maintaining 24/7 real-time communication between the world's leading financial centers. The clients of the financial industry of offshore centers are banks, investment funds, Insurance companies, consulting and accounting firms in almost all countries.
Currently, offshore business is a developed area of international finance. It is estimated that at least 5 trillion rubles are currently circulating in 69 offshore centers of the world. dollars. However, this estimate is considered an underestimate, since there are unaccountable secret accounts in offshore centers.
Providing foreign depositors and investors with various offshore privileges is one of the main means of competition between countries regarding the attraction of foreign capital. Offshore centers and zones provide foreign economic entities with the following advantages: tax benefits, lack of currency control, the ability to conduct transactions with non-residents in any foreign currency. writing off costs on the spot, anonymity and secrecy of financial transactions. Most offshore centers are also "tax havens", providing foreign investors with the following benefits in the field of taxation and the formation of their operations:
1. Income tax in them is practically absent or does not exceed 1-2%; Most of all, it is replaced by an annual fee, which in different centers is 150-1000 dollars and does not depend on the size of the income of offshore companies and banks. Taxes on the export of income in the form of dividends, interest, royalties, etc., as a rule, are not levied.
2. The procedure for registering offshore companies is simplified as much as possible: the minimum amount of capital is usually not set, the identity of the owners of firms is not subject to disclosure, the disclosure of their names is possible only in the event of an investigation into the commission of a criminal offense.
3. There are no restrictions on the export of capital: firms are free to make payments and open deposit accounts in any currency and in any foreign banks without restrictions.
4. The procedure for managing an offshore company is extremely simplified; most often it is managed by a so-called "secretary" firm. So, in the Caribbean, offshore or international companies are most often represented by a number or name in the directory. Their owners and shareholders are often unknown (or elusive), and the directors are local lawyers appointed by the clients' lawyers.
Owners of offshore companies, banks and deposits can be divided into three main groups:
1. Central banks and government agencies of some developed and developing, especially oil-producing, countries. Thus, Saudi Arabia has on deposits in offshore centers about 40 billion dollars, or 1/3 of the state currency resources.
2. Multinational companies (TNCs) and banks that place their funds in offshore centers mainly for the purpose of tax evasion and large-scale currency speculation.
3. Private investors - legal entities and individuals who hide their funds from taxes or launder "dirty" money from criminal business.
The most widely represented in offshore centers are banks that have the opportunity in these centers:
- create offshore branches and banks without complying with the rules on the minimum amount of authorized capital and the requirements for the creation of reserve funds;
- issue loans without limiting their volume and providing the necessary guarantees;
- not submit regular reports on the financial position and activities of the bank;
- do not disclose information about the bank's customers.
Thus, the main advantage of an offshore bank over a conventional commercial bank is that its activities are not limited by many regulations, including those relating to the creation of required reserves, and a rigid tax collection system. An offshore bank is able to provide its clients with a wide range of services on the international market by opening correspondent accounts with resident banks in various countries of the world.
Specialist literature distinguishes between offshore centers and so-called "tax havens" (or "tax havens"). As noted above, offshore centers create favorable conditions for non-residents in the field of their financial and credit operations with other foreign residents in foreign currency. In 2 tax havens, a preferential tax regime is established, which allows companies or their branches settled here to hide significant funds from taxation. If you look at the lists of offshore centers and "tax havens", they almost coincide. In some countries, there is preferential taxation for only certain types of income: in Luxembourg - for bank income, in Switzerland and Liechtenstein - for holdings, intermediary and trading companies, and in many island offshore centers there is a complete tax exemption for any income. Unlike offshore centers, "tax havens" extend tax benefits not only to foreign ones. but also to local companies.
Tax havens are of particular concern to shipowning firms, which have the ability to distribute ownership, operational management, office space and ship registration across four different countries or administrative territories. According to available estimates, by the beginning of the 1990s, 31% of the world's fleet (in terms of gross registered tonnage) sailed the seas "under the flag of convenience", i.e. were registered in countries that carry out open registration of ships and impose underestimated requirements for the technical condition and qualifications of the crew. Currently, the following countries carry out open registration of ships: Liberia, Panama, Cyprus, Costa Rica, Morocco. Singapore and San Marino, as well as a number of offshore zones (Bahamas, Bermuda and others).
The open registration of vessels under a “flag of convenience” enables shipowners to enjoy the following benefits:
- use a simplified procedure for registering ships, in which shipowners are subject to lower requirements for the technical condition of the vessel and the qualifications of the crew;
- receive significant profits, since registration fees are no more than 1 dollar per registration ton. The annual registration fee is between 10 and 40 cents per ton per year. Thanks to this, for example, the British company "British Petroleum" was able to save $ 2 million on registering its fleet "under the flag of convenience."
The downside of registering a “flag of convenience” is the increased accident rate of vessels registered in this way, since, as noted above, they are subject to underestimated requirements for technical condition and crew composition. Thus, according to available estimates, the average annual tonnage retirement rate for seagoing vessels is 0.4%, while for FOC ships it does not fall below 0.7%.
"Rodchel Rules" - rules developed by a special international commission for the supervision of the "flag of convenience", created by the International Transport Workers' Federation (International Transport Workers "s Federation).
Features and mechanisms of functioning of offshore centers allow them to be the most important link in the international system of laundering "dirty" money. According to the UN, the annual income of international organized crime is at least $1 trillion. dollars, which exceeds the income of the 500 largest companies in the world and the combined income of the least developed countries. The operation of offshore centers makes it relatively easy for crime syndicates to launder huge sums.
In recent years, attempts have been made to develop international rules and regulations. At an international conference of banking inspectors held in Stockholm in the summer of 1996, representatives of supervisory authorities from 138 countries (including offshore centers) agreed on the need to accelerate the implementation of minimum standards for the supervision of international banking operations. A review prepared for the conference noted that 20% of countries do not require consolidated financial information on the global operations of banks, and about 80% experience difficulties in verifying the reliability of such data in the field, as the legal regulations of a number of countries do not allow the use of all analysis tools available in at the disposal of the supervisory authorities. The participants of the Stockholm conference called for expanding cooperation between the supervisory authorities of the country where the bank is registered and the country where its branches and branches are located; speed up the development of rules for determining the effectiveness of the activities of national supervisory authorities and the procedures for their inspections in the country where foreign branches of banks are located; improve surveillance standards in these countries.
Operations of Russian banks in offshore centers. In recent years, not only the foreign activity of Russian banks has intensified, but also significant scales of illegal export of capital from Russia remain, which, according to various estimates, amounts to 10-20 billion dollars a year; at the same time, 2/3 of the exported capital is deposited in offshore accounts of Western banks.
Opening an international private bank in countries such as Cyprus, Nauru and others does not take a lot of effort from a Russian businessman and does not involve impossible requirements. Currently, an offshore company in Russia can be purchased for 2-5 thousand dollars, although services are sometimes offered at lower prices. At the same time, Russian banks and enterprises are provided with services in two forms:
1) in the form of opening a correspondent account of an offshore bank in a Russian bank;
2) in the form of registration of an offshore bank or representative office for the customer.
With the help of an offshore representative office, Russian banks and other economic entities can use the full range of banking services, including: asset management, operations with securities and foreign exchange, trust and investment operations, safekeeping of values, legal and advisory services, information services. At the same time, such characteristics of offshore business as profitability, confidentiality, tax planning and legal security (protection from arrest) are observed. It is clear that only the largest banks can use such services.
According to the Law of the Russian Federation "On currency regulation and currency control" (No. 3615-1 dated October 10, 1992), the acquisition or creation of an offshore company is a currency transaction associated with the movement of capital. All such operations require a license from the Central Bank of Russia (CBR). However, as experience shows, in the vast majority of cases, residents who acquire a company in an offshore center,
etc.................
Currently, many investment transactions involving partners from different countries are carried out as part of offshore operations related to offshore activities, which are any officially permitted commercial activities through banks, enterprises, etc., registered in offshore zones and centers.
In the modern world economy, offshore centers are small territories or states that have an extremely favorable regime for registration, taxation and financial transactions for foreign companies and banks.
Unlike offshore centers, offshore zones are not entire states, but part of the territories of individual states with preferential tax, currency, customs or administrative regimes. If offshore centers are mainly developing countries, then offshore zones are created mainly in developed countries - the USA, Switzerland, Great Britain, etc. In general, in the literature, the concept of "offshore center" is often used in relation to both offshore centers and offshore zones.
The history of offshore business began in the era of colonial domination, when private companies and their employees from the metropolitan countries were excluded from the jurisdiction of the colonies where they operated. Although this regime disappeared with the collapse of the colonial system, over time it revived again in the form of offshore centers and zones, most of which were located on the islands, i.e. “at a distance from the sea coasts” (in English: off-shore) of the leading financial centers of the world.
The creation of offshore centers in certain regions is due to two main factors: proximity to the centers of business activity and the lack of internal resources for development in states. For the first reason, OCs were created in industrialized countries - the United States, Canada, Great Britain, the Netherlands, Switzerland, etc. The second reason led to the emergence of offshore centers in the island states of the Atlantic and Pacific Ocean, which deliberately adopted legislative acts that facilitate the attraction of foreign capital. For some countries, income from offshore business is the main source of financial resources.
The rapid development of financial business in offshore centers in recent years has been the result of the introduction of the latest information technologies, which allow establishing and maintaining 24/7 real-time communication between the world's leading financial centers. The clients of the financial industry of offshore centers are banks, investment funds, insurance companies, trusts, legal, consulting and accounting firms of almost all countries.
Currently, offshore business is a developed branch of international finance. It is estimated that at least 5 trillion rubles are currently circulating in 69 offshore centers of the world. dollars. However, this estimate is considered an underestimate, since there are secret accounts that cannot be accounted for in offshore centers.
Providing foreign depositors and investors with various offshore privileges is one of the main means of competition between countries regarding the attraction of foreign capital. Offshore centers and zones provide foreign economic entities with the following advantages: tax benefits, lack of currency control, the ability to conduct transactions with non-residents in any foreign currency, write-off costs on the spot, anonymity and secrecy of financial transactions. Most offshore centers are also "tax havens" that provide foreign investors with the following benefits in the field of taxation and registration of their transactions.
1. Income tax in them is practically absent or does not exceed 1-2%; most often it is replaced by an annual fee, which in different centers is 150-1000 dollars and does not depend on the size of the income of offshore companies and banks. Taxes on the export of income in the form of dividends, interest, royalties, etc., are generally not levied.
2. The procedure for registering offshore companies is simplified as much as possible: the minimum amount of capital is usually not set, the identity of the owners of firms is not subject to disclosure, disclosure of their names is possible only in the event of an investigation into the fact that they have committed a criminal offense.
3. There are no restrictions on the export of capital: firms are free to make payments and open deposit accounts in any currency and in any foreign banks without restrictions.
4. The procedure for managing an offshore company is extremely simplified; it is most often run by what is known as a "secretary firm" in the Caribbean. Offshore, or international, companies are most often represented by a number or name in a directory. Their owners and shareholders are often unknown (or elusive), and the directors are lawyers appointed by the clients' lawyers.
Owners of offshore companies, banks and deposits can be divided into three main groups.
1. Central banks and government agencies of some developed and developing, especially oil-producing, countries. So. Saudi Arabia has about $40 billion on deposits in offshore centers, or 1/3 of the state's foreign exchange resources.
2. Multinational companies (TNCs) and banks that place their funds in offshore centers mainly for the purpose of tax evasion and large-scale currency speculation.
3. Private investors - legal entities and individuals who hide their funds from taxes or launder "dirty" money from criminal business.
The most widely represented in offshore centers are banks that have the opportunity in these centers:
§ create offshore branches and banks without complying with the rules on the minimum amount of authorized capital and the requirements for the creation of reserve funds;
§ issue loans without limiting their volume and providing the necessary guarantees;
§ not submit regular reports on the financial position and activities of the bank;
§ not disclose information about the bank's clients.
Thus, the main advantage of an offshore bank over a conventional commercial bank is that its activities are not limited by many regulations, including those relating to the creation of required reserves, and a rigid tax collection system. An offshore bank is able to provide its clients with a wide range of services on the international market by opening correspondent accounts with resident banks in various countries of the world.
Specialist literature distinguishes between offshore centers and so-called "tax havens" (or "tax havens"). As noted above, offshore centers create favorable conditions for non-residents in the area of their financial and credit operations with other foreign residents in foreign currency. In "tax havens" a preferential tax regime is established, which allows companies or their branches settled here to hide significant funds from taxation. If you look at the lists of offshore centers and "tax havens", they almost coincide. In some countries, there is preferential taxation for only certain types of income: in Luxembourg - for bank income, in Switzerland and Liechtenstein - for holdings, intermediary and trading companies, and in many island offshore centers there is a complete tax exemption for any income. Unlike offshore centers, "tax havens" extend tax benefits not only to foreign, but also to local companies.
Tax havens are of particular concern to shipowning firms, which have the ability to distribute ownership, operational management, office space and ship registration across four different countries or administrative territories. According to available estimates, by the beginning of the 1990s, 31% of the world's fleet (calculated in terms of gross registered tonnage) was flying around the seas with a "flag of convenience", i.e. were registered in countries that carry out open registration of ships and impose underestimated requirements for the technical condition and qualifications of the crew. Currently, open registration of vessels is carried out by: Liberia, Panama, Cyprus, Costa Rica, Morocco, Singapore, and San Marino, as well as a number of offshore zones (Bahamas, Bermuda, etc.).
The open registration of vessels under a “flag of convenience” enables shipowners to enjoy the following benefits:
Use a simplified procedure for the registration of ships, in which shipowners are presented with lower requirements for the technical condition of the vessel and the qualifications of the crew;
Receive significant profits, since registration fees are no more than $ 1 per registration ton. The annual registration fee is between 10 and 40 cents per ton per year. Thanks to this, for example, the British company "British Petroleum" was able to save $ 2 million on registering its fleet "under the flag of convenience."
The downside of registering "under a flag of convenience" is the increased accident rate of ships registered in this way, since, as noted above, they are subject to underestimated requirements for technical condition and crew composition. Thus, according to available estimates, the average global tonnage retirement rate for seagoing vessels is 0.4%, while for FOC ships it does not fall below 0.7%.
"Rodchel Rules" - rules developed by a special international commission for the supervision of the "flag of convenience", created by the International Transport Workers' Federation (International Transport Workers "s Federation).
Features and mechanisms of functioning of offshore centers allow them to be the most important link in the international system of laundering "dirty" money. According to the UN, the annual income of international organized crime is at least $1 trillion. dollars, which exceeds the income of the 500 largest companies in the world and the total income of the least developed countries. The operation of offshore centers makes it relatively easy for crime syndicates to launder huge sums.
In recent years, attempts have been made to develop international rules and regulations. At an international conference of banking inspectors held in Stockholm in the summer of 1996, representatives of supervisory authorities from 138 countries (including offshore centers) agreed on the need to accelerate the implementation of minimum standards for the supervision of international banking operations. A review prepared for the conference noted that 20% of countries do not require consolidated financial information on the global operations of banks, and about 80% experience difficulties in verifying the reliability of such data in the field, as the legal regulations of a number of countries do not allow the use of all analysis tools available in at the disposal of the supervisory authorities. The participants of the Stockholm conference called for expanding cooperation between the supervisory authorities of the country where the bank is registered and the country where its branches and branches are located; speed up the development of rules for determining the effectiveness of the activities of national supervisory authorities and the procedures for their inspections in the country where foreign branches of banks are located; improve surveillance standards in these countries
Operations of Russian banks in offshore centers. In recent years, not only the foreign activity of Russian banks has intensified, but also significant scales of illegal export of capital from Russia remain, which, according to various estimates, amounts to 10-20 billion dollars a year; at the same time, 2L of exported capital is deposited in offshore accounts of Western banks.
Opening an international private bank in such countries as Cyprus, Nauru, etc. does not take a lot of effort from a Russian businessman and is not associated with impossible requirements. Currently, an offshore company in Russia can be purchased for 2-5 thousand dollars, although services are sometimes offered at lower prices. At the same time, services are provided to Russian banks and enterprises in two forms: 1) in the form of opening a correspondent account of an offshore bank in a Russian bank; 2) in the form of registration of an offshore bank or representative office for the customer.
With the help of an offshore representative office, Russian banks and other economic entities can use the full range of banking services, including: asset management, operations with securities and foreign currency, trust and investment operations, safekeeping of values, legal and advisory services, information services. At the same time, such characteristics of offshore business as profitability, confidentiality, tax planning and legal security (protection from arrest) are observed. It is clear that only the largest banks can use such services.
According to the Law of the Russian Federation "On currency regulation and currency control" (No. 3615-1 dated October 10, 1992), the acquisition or creation of an offshore company is a currency transaction associated with the movement of capital. All such operations require a license from the Central Bank of Russia (CBR). However, as experience shows, in the overwhelming majority of cases, residents who acquire a company in an offshore center do not have such a license, which indicates at least their “legal illiteracy”. Firms involved in the sale of ready-made offshore companies are often silent about the need for a CBR license, as this would increase the price of an offshore company several times. In accordance with the above-mentioned Law, residents who carry out foreign exchange transactions related to the movement of capital are required to keep strict records and draw up reports on their foreign exchange transactions so as not to violate foreign exchange legislation.
It should be recognized, however, that violations of currency legislation and the process of uncontrolled export of capital from Russia continue. IN Lately An important role in this process is played by the banks of the Baltic countries, which have become a “transit outpost” for the movement of private offshore deposits from Russia to the West through the mechanism of numerous correspondent accounts. According to available estimates, today up to 50% of the total export of capital from Russia passes through the Baltic banks.
Of course, the Russian authorities are trying to fight the illegal export of funds from the country. So, back in October 1994, in a letter "On the procedure for carrying out transactions related to the movement of capital," the Central Bank expressed its negative attitude towards the illegal registration of companies by Russians in offshore centers and "tax havens." In February 1995, the CBR sent a letter to the banks of Belgium and Luxembourg with a request "to prevent violations of Russian legislation" on currency control. The CBR sought to ensure that the accounts illegally opened by Russians in these banks were closed.
In 1999, the Central Bank was granted the right to control the relations of commercial banks with offshore companies, which, according to official estimates, reduced capital flight by 40%. If at the beginning of 1999 about 1 billion dollars in months were transferred from Russia to offshore centers, then two months after the adoption of these measures, this amount was reduced to 500 million dollars, and in January 2000 it amounted to only 275 million dollars The country continues to discuss new measures to prevent the flight of capital and the return of "fluent" capital to the country's economy. The main condition for the return of at least part of the funds exported abroad is, first of all, the stabilization of general economic conditions in the country and the creation of a favorable investment climate.
A promising area of offshore business is the development of schemes for activities in the global securities markets. The emergence of offshore mutual funds and investment companies of various types has become one of the most characteristic elements of the "investment boom" that has been observed in all major offshore jurisdictions since the early 90s. This direction is relevant, first of all, for banks and other enterprises of the financial sector.
Finally, the role of offshore schemes in the formation of transnational economic systems will increase, when offshore and various "preferential" firms will be built into the system of external branches of a Russian enterprise. Indeed, in many cases, the development of offshore schemes is economically justified for them, and sometimes the only possible step. Imagine that the production facilities are in one country, the sales market is in another, and the financial resources are in a third. But this is quite typical not only for foreign transnational corporations, but also for many Russian firms.
Both the largest and many medium-sized Russian companies have extensive foreign connections and external capital investments. As an increasing number of headquarters of domestic financial and industrial groups appear in Russian cities, offshore schemes will be aimed at overcoming foreign tax barriers. However, the quality of offshore technologies for this should be at least an order of magnitude higher than that which is sufficient for basic offshore schemes.
Experience in creating offshore centers in Russia. Russia has experience in creating so-called internal offshore zones, the most famous of which are Ingushetia, Kalmykia and Altai, in which all local taxes were canceled to attract non-resident companies of these zones and the rest were reduced to the minimum permitted by law. For example, the road tax rate is reduced to 0.03% for commercial transactions and to 0.4% for other transactions (the normal rate is 1%). Instead of local taxes, companies registered in the zone pay a fixed annual fee of $6,800 in Ingushetia, $3,953 in Kalmykia, and $3,000 in Altai. These fees brought the first two zones up to 20 million dollars a year.
Unlike the offshore zones discussed above, which are designed to attract foreign legal entities and individuals (non-residents), Russian offshores attract domestic economic entities (residents) and are mainly aimed at developing the territories and republics where such zones are created. The results of their activities are very ambiguous and contradictory, which is largely due to the lack of a developed legal framework and non-compliance with already adopted laws.
The prospects for the development of offshore business in Russia largely depend on the development of legislative acts that clearly regulate the processes of creation and operation of offshore zones and territories and provide for severe sanctions for violation of the law. It is also important to ensure that the adopted laws are strictly observed. As experience shows, the practice of adopting resolutions of central and local authorities to provide tax and other benefits in certain zones did not justify itself, since many benefits were provided without sufficient economic justification.
Topic 7.
Question 1. Taxation of foreign investors in foreign countries
In various countries of the world, regarding the regulation and taxation of foreign companies, the following can be established:
Most favored nation treatment, under which all foreign investors are subject to the same tax treatment;
National treatment, in which in the field of taxation a foreign investor is granted the same rights and the same requirements are imposed as local investors.
Recently, in most economically developed countries, foreign investors have been subject to the national taxation regime. Although the tax laws of different countries differ in the ratio (specific weight) of various taxes and fees, in the magnitude of tax rates, in the methods of calculating the tax base (i.e., taxable amounts), the set of taxes as a whole is almost the same.
In all countries, taxes are divided into two large groups according to the method of collection: direct and indirect.
Direct taxes, which are levied directly on the income or value of the taxpayer's property, include corporate income tax (corporate tax), personal income tax, land, property and other taxes.
Indirect taxes, which are calculated as a share of the price of products and are included in the price or tariff of a product or service paid by the consumer, include: value added tax, excises, registration fees, etc.
When deciding whether to invest in a particular country, investors first of all pay attention to the level of taxation, especially the corporate income tax rates (corporate tax).
The tax rates on the profits of companies in the EU countries are different.
Rates and other taxes vary by EU countries. Thus, tax rates on income of non-residents in the form of dividends range from 0% in the UK to 32.4% in Italy and 40% in Greece; for income in the form of interest - from 0% in Denmark, Luxembourg and the Netherlands to 45% in France; on income from the sale of patents, know-how, etc. - from 0% in the Netherlands to 25% in Germany and the UK and 33.3% in France.
EU countries have different rules for starting new businesses, with different minimum capital requirements and different start-up costs.
In Germany, the cost of establishing a limited liability company with a minimum capital of 25,000 euros is about 450 marks, including the costs of entry in the commercial register, publication of a press release and notary services.
In Austria, the creation of a limited liability company with a minimum capital of 35,000 euros and a joint-stock company with a minimum capital of 75,000 euros requires spending an amount equal to 10-15% of the cost of capital.
In Belgium, to create a joint stock company with a minimum capital of 60 thousand euros, the following expenses are required: registration fee - 0.5% of the cost of capital; the cost of entering the company in the commercial register - 75 euros; the cost of publishing a message in the "Mopiter Belge" - 150 euros; payment for notary services - 495 euros. It is necessary to submit a financial plan for the development of the company for two years and indicate the sources and funds for its financing, as well as measures in case of bankruptcy.
In Denmark, the cost of establishing a limited liability company with a minimum capital of 17,000 euros is about 900 euros, including 300 euros for registration. To create a joint-stock company with a minimum capital of 65,000 euros, 1,800 euros are needed, including 400 euros for registration.
In Spain, to create a joint-stock company with a minimum capital of 60 thousand euros, the costs are: for registration - 1% of the cost of share capital; to enter the company in the commercial register - about 500 euros; for notary services - 0.2% of the cost of capital. Prior to incorporation, the company must deposit in a bank or savings bank an amount equal to the value of the share capital.
In Finland, the creation of a joint-stock company with a minimum capital of 10,000 euros requires 240 euros. In addition, for the introduction of a person who is not from one of the EU countries, an additional 85 euros is required in order to obtain prior approval from the Ministry of Trade and Industry. Documents submitted for registration must be translated into Finnish or Swedish.
In France, to create a limited liability company with a minimum capital, the costs are a maximum of 700 euros, including 200 euros for registration and 150-500 euros for publication in a special newspaper. To create a joint-stock company with a minimum capital of 40,000 euros, 900 euros are required, including 200 euros for registration and 400-700 euros for publishing a notice.
In Greece, to set up a limited liability company with a minimum capital of 20,000 euros or a joint stock company with a minimum capital of 60,000 euros, an amount of 6 to 10% of the cost of capital is required.
In Ireland, the creation of a limited liability company (the minimum amount of capital in this country is not established) involves the following costs: payment for the right to contribute a share of capital - 1% of the cost of capital; registration fee - about 200 euros; other expenses (printing the charter, making a seal, etc.) - 25 euros. The acquisition of a ready-made company (“dummy”) will cost 400 euros, for this you should contact a lawyer.
In Italy, to create a limited liability company with a minimum capital of 10 thousand euros, 2,100 euros are required, which are distributed as follows: payment of the right to contribute a share of capital -
1% of its value, or 100 euros; notary services - 1200 euros; publication of a message in the "Official Bulletin of Companies" - about 100 euros; other expenses (for registration, signing documents, etc.) - about 700 euros. When creating a joint-stock company with a minimum capital of 100 thousand euros, the costs are about 3,700 euros.
In Luxembourg, the minimum capital of a limited liability company is 12,000 euros; the cost of its creation is about 850 euros, including: for the right to contribute a share in the capital - 1% of the total cost of capital; for entry in the commercial register - 120 euros; for the publication of a message - 250 euros; for notary services - 225 euros. To create a joint-stock company with a minimum capital of 30 thousand euros, about 1,700 euros are required, including for the right to contribute a share in the capital - 1% of the total cost of capital; for entry in the commercial register - 120 euros; for the publication of a message - 320 euros; for notary services - about 1000 euros. If a foreign citizen claims to be the head of a company being created, he must confirm his qualifications and obtain an appropriate certificate from the Ministry of Middle Classes.
In the Netherlands, to create a joint-stock company with a minimum capital of 20,000 euros, 2,270 euros are required, including payment for the right to contribute a share in the capital - 1% of the total cost of capital and payment for notary services. In this country, a dossier of company formation documents must be submitted to the Ministry of Justice for approval.
In Portugal, the minimum capital of a joint-stock company is 25,000 euros; the cost of its creation is about 2000 euros.
In the UK, there is no minimum capital requirement for a limited liability company and €1,800 is required to set it up. A ready-to-use company can be purchased for 300 euros. The process of establishing a public limited company should begin with obtaining a certificate certifying the registration of the company and granting it the right to start operations in the UK.
In Sweden, a joint stock company must have a minimum capital of 10,000 euros; it requires 130 euros to create it; the acquisition of a company ready for registration will cost 1,000 euros, including lawyers' fees.
Question 2. Taxation of foreign investors in Russia
According to the tax legislation in force in Russia (the Tax Code of the Russian Federation), the country's tax system includes three levels of taxes.
1. Federal taxes and fees, which include:
value added tax;
Excises on certain types of goods (services) and certain types of raw materials;
Tax on income from capital;
Personal income tax;
Contributions to state social off-budget funds;
Government duty;
Customs duty and customs fees;
Subsoil use tax;
Tax on the reproduction of the mineral resource base;
Tax on additional income from hydrocarbon production;
Fee for the right to use objects of the animal world and aquatic biological resources;
forest tax;
Water tax;
Environmental tax;
Federal license fees.
2. Regional taxes and fees levied on the territory of the constituent entities of the Russian Federation include:
Corporate property tax;
Property tax;
Road tax;
Transport tax;
sales tax;
Tax on gambling business;
Regional license fees.
3. Local taxes and fees established by local governments include:
Land tax;
Personal property tax;
Inheritance or gift tax;
Local license fees.
A detailed analysis of the Russian tax system is beyond the scope of this course, so you should focus on general characteristics Russian tax system
tax system of the Russian Federation and on the most important taxes levied on foreign investors.
Classification of taxes Criterion Types of taxes
By the body that establishes the tax Federal taxes. Regional taxes. Local taxes
In order of introduction, Obligatory (all federal taxes). Optional (regional and local, which can be canceled and introduced).
By subject of taxation Taxes on individuals. Taxes on legal entities.
Mixed (for individuals and legal entities), for example, state duties By object of taxation Taxes on income (on income, on income of individuals) Consumption taxes (VAT, excises, social contributions).
Taxes on capital or property
By method of collection Direct taxes paid by the recipient of income Indirect taxes levied through the price of goods or services
By periodicity of collection Regular taxes levied continuously. One-time taxes levied in individual cases (state duty, inheritance tax, etc.)
According to the intended purpose General - for the formation of the state budget. Special - to finance specific expenses (social contributions, water tax, transport, etc.)
A foreign legal entity that decides to start its activities in the Russian Federation is obliged to register with the state tax office. If it carries out this activity in several places on the territory of the Russian Federation, then in each of them it is obliged to register with the relevant tax office, regardless of whether its activities are later recognized as subject to taxation or not.
Classification of taxes levied on the territory of the Russian Federation.
A foreign legal entity carrying out entrepreneurial activities in the territory of the Russian Federation through a permanent establishment is a payer of income tax.
The concept of a permanent establishment is used to determine the tax status of a foreign legal entity in the Russian Federation, and has no organizational and legal significance.
Permanent representative office - any place of regular activity of a foreign legal entity (branch, department, bureau, office, agency, organization, etc.), which allows you to generate income in the territory of the Russian Federation.
Foreign legal entities are required to register for tax in Russia, regardless of whether their further activities are recognized by the tax authority as taxable or not. In other words, the basis for registration with the tax authority is the very fact that a foreign company has started operating in the Russian Federation, and not the presence or absence of tax liabilities. Responsibility for evading registration with the tax authority in the form of a fine has been established.
For tax purposes, it does not matter whether a foreign company has permission to open a representative office (accreditation).
When registering a branch of a foreign legal entity, a taxpayer identification number (TIN) is assigned, which is indicated in all documents submitted to the tax authorities.
Commercial banks and other credit and financial institutions open ruble, currency, deposit and other accounts for taxpayers - foreign firms only when they submit the original certificate of registration with the tax authority of the Russian Federation.
In the field of taxation for commercial organizations with foreign investments (FOI) and other forms of direct investment in the Russian Federation, a national regime is established, which means that they pay taxes established by the legislation in force in the territory of the Russian Federation for national enterprises. In addition, joint ventures with foreign capital are subject to the general legal regime of preferential taxation, as is the case for Russian enterprises.
The fundamental concepts of taxation are the tax base and the tax rate.
The tax base is a cost, physical or other characteristic of the object of taxation. Tax rate - value
tax charges per unit of measurement of the tax base.
Taxpayers - commercial organizations calculate the tax base at the end of each tax period based on the data of the accounting register and (or) on the basis of other documented data on objects subject to taxation.
1. Income tax (corporate tax) is one of the direct taxes, i.e. taxes levied directly on profits received in the course of the taxpayer's activities. Currently, the base income tax rate in Russia is 24%. The subjects of the Russian Federation have the right to set their own income tax rate. The tax base when calculating the tax on income from sales in the most general form is determined as follows:
NO \u003d Vr - VAT - Cs - KR - UR,
where NO is the taxable base, Vr is the sales proceeds, VAT is the value added tax, C c is the cost of production,
KR and SD - respectively, commercial and management costs (together these are additional costs - DR).
Example: The revenue of KORZH from the sale of products in 2005 is 1200 thousand, VAT is 200 thousand, the cost of production is 600 thousand, commercial expenses are 100 thousand and management expenses are 100 thousand.
Taxable income 1200 - 200 - 600 - 100 - 100 = 200 thousand.
Income tax (200 x 24): 100 = 48 thousand.
Foreign legal entities that do not have permanent representative offices in the Russian Federation also pay tax on dividends and interest received in the territory of the Russian Federation, on income from freight, sea, air, road and rail transportation, from rent, use of licenses and copyrights, etc.
Commercial organizations must submit a certificate of advance tax contributions to the budget, calculated on the basis of the estimated amount of profit, to the bodies of the Ministry of Taxes and Dues no later than 20 days before the end of the quarter, and within 5 days after the submission of the certificate, these contributions to the budget must be made . At the end of the quarter, a quarterly report and a calculation of the return from the budget of overpaid amounts (if any) should be submitted to the tax office.
2. Value Added Tax (VAT) is an indirect tax, the amount of which is attributed to the cost of production, i.e. included in its price and paid by the consumer. VAT is levied on: a) turnover on the sale of goods, works and services performed in the territory of the Russian Federation; b) the cost of goods imported into the territory of the Russian Federation; c) any funds received from counterparties, except for contributions to the statutory fund, funds for targeted financing and for the implementation of joint activities.
The base VAT rate is 18%, although, according to some estimates, the optimal VAT rate should be no more than 10-15%. For food products (excluding excisable goods), the VAT rate has been reduced to 10%. The amounts of VAT collected go to the federal budget and the budgets of the subjects of the Federation.
Example: The cost of a unit of an enterprise's product is 100. When determining the price of this product, VAT at a rate of 18% is included in it. Thus, the price of a unit of production will be equal to:
100 + (100 x 18): 100= 100+ 18 = 118.
Foreign legal entities carrying out commercial activities on the territory of the Russian Federation are divided into two categories:
1) foreign legal entities registered with the tax authority of the Russian Federation calculate and pay VAT independently in the manner established for Russian enterprises;
2) foreign legal entities that are not registered with the tax authorities of the Russian Federation pay VAT through a Russian partner.
3. Property tax is a direct tax credited to the budgets of the subjects of the Federation. Payers of property tax are permanent representative offices and other separate subdivisions of foreign companies, banks and organizations. This tax is subject to:
1) fixed assets (including those leased with the right of subsequent redemption), i.e. buildings (including residential), structures, transmission and vehicles, devices, machines, equipment and other types of fixed assets;
2) intangible assets - rights to use a land plot and natural resources, patents, licenses, know-how, software products, monopoly rights and privileges, including licenses for a certain type of activity, organizational expenses, trademarks, trademarks;
3) inventories and costs, including inventories, low-value and wearing items, work in progress, finished products and goods.
The basis for determining the value of property is the residual value, which is determined as the difference between the initial cost (acquisition value) and depreciation, accrued under the laws of the country of permanent residence of a foreign legal entity. For taxation purposes, the average annual value of property for the reporting period is determined - a quarter, half a year, 9 months, a year. KOII submit to the tax authorities only quarterly calculations of the average annual cost and property tax.
Diplomatic missions and organizations equated to them, as well as property received on lease under a concluded agreement without the right of subsequent redemption, are exempt from property tax.
The property tax was one of the reasons for the reinvestment by the American company IBM of funds invested in the production of personal computers at the Kvant plant in Zelenograd. IBM imported $2 billion worth of equipment into Russia and installed it at the factory, hoping that this would provide it with significant cost savings compared to importing products. However, the need to pay tax on the ownership of this property and the abolition by the Russian parliament of exemptions for duty-free import of components previously provided by the Russian government deprived the company of an advantage over computer importers,
which enjoy various benefits, which forced IBM to curtail production in Russia.
4. Unified social tax, levied from January 1, 2005 at a rate of 26%. Due to this tax, deductions are made to the Pension Fund, for health insurance, etc.
5. Other taxes and fees, which include taxes included in production costs or deductible, federal transportation tax, personal income tax, various local taxes, etc.
The Tax Code of the Russian Federation provides for the possibility of introducing a special tax regime, which is a special procedure for calculating and paying taxes and fees for a certain period of time, applied in accordance with federal laws. Special tax regimes include:
Simplified system of taxation of small businesses;
Taxation system in special economic zones;
Taxation system in closed administrative-territorial formations;
The system of taxation in the performance of concession agreements;
The system of taxation at the conclusion of production sharing agreements.
The current tax incentives for enterprises in Russia, including for KOII, take mainly the following forms:
1) two-year tax holidays for certain types of investments;
2) a preferential taxation regime, similar in structure to the regime for Russian small businesses;
3) an investment tax credit, which is such a change in the tax payment term, in which the FIU can, within certain limits, reduce its tax payments, followed by a phased payment of the loan amount and interest accrued on this amount. Such a credit can be granted for income tax, as well as for regional and local taxes. Its term is from one to five years.
An investment tax credit may be granted to an FOI if at least one of the following conditions is met:
Carrying out by the organization R & D or technical re-equipment of its own production, including those aimed at creating new jobs or protecting the environment from pollution by industrial waste;
Implementation by the organization of implementation or innovation activities, including the creation of new or improvement of applied technologies, the creation of new types of raw materials or materials;
Fulfillment by the organization of a particularly important order for the socio-economic development of the region or the provision by it of particularly important services to the population.
Certain tax incentives for foreign investors can be provided by regional and local authorities.
According to experts, the current tax system in Russia does little to stimulate the investment activity of both Russian and foreign investors, since it is predominantly repressive. Restrain investment activity and such factors as the confiscatory tax regime, including high tax rates, multiple taxes, advance payments, frequent changes in tax legislation, often contradictory. The complex and controversial tax system actually stimulates the desire of entrepreneurs to evade taxes. Foreign companies that generally try not to violate tax laws often come under scrutiny from the tax authorities, as they present an easy target for them.
As noted in the French Journal of International Trade (MOCI), which published recommendations for French entrepreneurs on the topic "How to succeed in Russia", although the level of corporate taxes in Russia is lower than in France, the methods of calculating the tax base and accounting principles in On the whole, they differ significantly from those accepted in the West, which creates additional difficulties for Western partners. A significant tax risk is also associated with the fact that the structure of the Russian tax system is very complex and, moreover, subject to frequent changes. “All this leads to the fact that even honest taxpayers find it difficult to keep track of these changes and pay all taxes. That is why this area should be the object of close attention and careful analysis by Western investors.”
Although Russia is taking measures to provide tax incentives to foreign investors, their effect is still generally insignificant, which obviously requires a systematic approach to creating a favorable investment climate in the country based on the coordination of legislative, tax, customs and other policies.
The Law on Foreign Investments of 1999 introduced for the first time the concept of "aggregate tax burden", which is the estimated total amount of funds payable by a foreign investor. The total tax burden includes:
Import customs duties (with the exception of customs duties caused by the application of measures to protect the economic interests of the Russian Federation in the implementation of foreign trade in goods in accordance with the legislation
Federal taxes (with the exception of excises, value added tax on goods produced in the territory of the Russian Federation);
Contributions to state off-budget funds (except for contributions to the Pension Fund of the Russian Federation).
The introduction of an aggregate tax burden will allow a foreign investor to:
First, evaluate the economic efficiency of the investment
Secondly, to legally fix this amount of money as a certain baseline, so that in the future, when implementing an investment project, it would be possible to assess how much the tax burden has changed and in which direction - increase or decrease.
In the event of an unfavorable change in the tax burden, a foreign investor has the right to appeal to guarantees, proving that the total tax burden has exceeded the calculated rate, which, in turn, hinders the normal implementation of the investment project.
According to experts, in order to increase the competitiveness of the Russian tax system at the international level, the concept of its long-term development should include:
Establishment and state guarantee of maintaining direct tax rates at a level below the world average;
Further expansion of the tax base and reduction of personal and corporate income tax rates;
Changing the ratio between personal and corporate income taxes;
Elimination of the distorting effect of taxes on savings and borrowing - taxes on income, on capital gains, on income in the form of interest and dividends;
Convergence of personal income tax and social security contributions;
Exemption from taxation of investments in production and productive savings of citizens and enterprises.
Question 3. Regime of registration of companies with foreign capital in foreign countries
For purposeful state regulation of foreign investments, the organization of their registration is very important. By carrying out such registration, the state gets the opportunity to protect the national market on the necessary scale and stimulate the inflow of foreign investment in priority sectors and regions of the country. At the same time, in an unstable economy, foreign investors need additional state guarantees compared to local entrepreneurs, which can only be provided if there is a special procedure for registering enterprises with foreign capital.
Thus, a special procedure for registering commercial organizations with foreign investments (FOI) is in the interests of both host countries and foreign investors.
Although most countries of the world adhere to the principle of national treatment in relation to foreign investors, this does not mean that they do not have separate restrictions for foreign entrepreneurs. Countries have different approaches to the issue of the need for prior permission for direct investment in their territory. In some countries, such permission is required only in some cases, in others - for all investments. In many countries, there are national bodies that control the creation and operation of enterprises with foreign participation. These functions can be performed by the central bank of the country, the ministries of economy, finance or industry, as well as bodies specially created for this purpose. For example, in Finland this is done by the Advisory Commission on Foreign Investments under the Ministry of Trade and Industry, in Portugal - by the Institute of Trade, Tourism and Investments, etc. In most countries of the world there are special trade registers (registers) in which all firms and enterprises operating in the country, including those with foreign investment, are registered.
An application for registration in the commercial register is submitted in the prescribed form, which usually indicates:
Postal addresses, citizenship and place of residence of the founders (if the founder is a legal entity, then data on his partners), members of the board, their deputies, director (president) and his deputies, auditors and their deputies;
Company name, the total nominal value of shares after subscription to them;
A document certifying the legal capacity of the mentioned officials and the competence of the auditors.
The following documents are usually required to be attached to the application:
1) originals and copies of the charter and contract;
2) a copy of the minutes of the constituent assembly;
3) a copy of the protocol on the selection of members of the board, their deputies, director and auditor and their deputies;
4) a certificate from a banking institution on the amount deposited on a separate
5) permission of the state body (if required).
During registration, all these data are checked, including through requests. The registration period is usually 1-3 months. There is a special fee for registration.
Question 4. Registration of commercial organizations with foreign investments in Russia
In Russia, all newly created, reorganized and liquidated commercial and non-profit organizations are subject to state registration. With such registration, the compliance of the procedures for the creation, reorganization or liquidation of legal entities with the current legislation is checked.
During the years of reforms, the procedure for state registration of enterprises with the participation of foreign capital has changed like a kaleidoscope. It was quite difficult for foreign investors to keep track of the change in the powers of the Russian state bodies that control the investment of foreign capital in the country's economy. At the very beginning of the 1990s, the state body that carried out the registration of an enterprise with foreign investment was the Ministry of Finance of the RSFSR or other authorized bodies. Thus, enterprises with a volume of foreign investment over 100 million rubles. registered by the Ministry of Finance with the permission of the government. In November 1991, the ministry shared its competence with the administration of the constituent entities of the Russian Federation. In May 1992, the functions of registering foreign investments were transferred to the Committee on Foreign Investments under the Ministry of Finance of Russia. Later, this committee was disbanded and the Russian Agency for International Cooperation and Development was created, which was also liquidated.
In accordance with the Decree of the Government of the Russian Federation of June 6, 1994 No. 655, the State Registration Chamber was established under the Ministry of Economy. It was endowed with the functions of registering enterprises with foreign investment, maintaining the state register of such enterprises. Only two types of enterprises with foreign investments were to be registered with this body: enterprises in which the volume of foreign investments exceeds 100 million rubles, and enterprises of the fuel and energy complex (regardless of the volume of foreign investments). In other cases, registration is carried out by the authorized bodies of the republics, territories, regions. Thus, the functions of registration of commercial organizations are carried out by the State Registration Chamber, which was established on the basis of the Decree of the Government of the Russian Federation of June 6, 1994 with the rights public institution under the Ministry of Economy of the Russian Federation. In September 1998, it was transferred to the jurisdiction of the Ministry of Justice of the Russian Federation.
Today, the terms of reference of the State Registration Chamber include the following functions:
State registration of KOII, regardless of their volume and share in the authorized capital, operating in the oil and gas, oil and gas processing and coal mining sectors of the national economy;
State registration of KOII, in which the volume of foreign investments in the authorized capital exceeds 100 thousand rubles;
Registration of changes in the constituent documents of the KOII registered in the constituent entities of the Russian Federation, if the volume of foreign investment in the authorized capital exceeds 100 thousand rubles;
Liquidation of FOI registered by the Chamber;
Maintaining the State Register of commercial organizations with foreign investments registered in the territory of the Russian Federation;
Accreditation of representative offices of foreign companies in the territory
Maintaining the Consolidated State Register of representative offices of foreign companies accredited in the Russian Federation;
Registration of branches of foreign legal entities in the territory
Maintaining the State Register of branches of foreign legal entities registered in the territory of the Russian Federation;
Registration of Russian investments abroad;
Maintaining the Consolidated State Register of Russian Investments for
Coordination of the work of registration authorities on the territory of the Russian Federation on issues within the competence of the Chamber;
Performing reference, analytical and information work;
Providing extracts from state registers;
Creation and operation of an information system that ensures the free provision of information from state registers on a paid basis.
The Consulting and Visa Service and the Information and Advisory Center operate as independent legal entities under the State Registration Chamber.
KOII, registered and entered in the State Register, are issued certificates of the established form. From the moment of registration, the KOII acquires the rights of a Russian legal entity and the possibility of conducting business activities on the territory of the Russian Federation in accordance with the constituent documents. Any changes in the founding KOII come into force only
after their registration and entry into the State Register
Upon liquidation of the KOII, an entry is also made in the State Register and an appropriate certificate is issued,
Refusal in the state registration of the KOII is possible in case of violation of the procedure established by law for the creation of a commercial organization, as well as inconsistency of its constituent documents with the requirements of the legislation of the Russian Federation. KOII may be denied state registration also in order to protect the foundations of the constitutional order, morality, health, rights and legitimate interests of others, to ensure the defense of the country and the security of the state. The KOII may appeal this refusal in court.
Activities of unregistered commercial organizations are prohibited. Incomes received by unregistered commercial organizations are collected through the courts and sent to the state budget.
According to the new Law on Foreign Investments, legal entities that are FOI are subject to state registration with the justice authorities within one month from the date of submission of the following documents to the relevant authority.
Certificate of registration of the company or an extract from the Commercial Register of the country of origin of the company or other document confirming the legal status of a foreign investor.
Charter of a foreign company or other document replacing the charter.
Certificate from the bank on the presence of an open current account of the company and its solvency.
The decision to establish an enterprise with foreign investment in
Certificate of assignment of a taxpayer number.
Receipts for payment of the registration fee.
Power of attorney for the person representing the interests of the company for registration.
The parent (foreign) organization that establishes a branch on the territory of the Russian Federation shall submit to the federal body a regulation on the branch of a foreign legal entity, which must specify:
Names of the branch and its parent organization;
Purposes of creation and activities of the branch;
Composition, volume and timing of capital investment in the fixed assets of the branch;
Branch management.
This document may include other information reflecting the features of the activities of the branch.
The assessment of capital investment in fixed assets of a branch of a foreign legal entity is carried out by the parent organization on the basis of domestic prices or world prices. The assessment is carried out in the currency of the Russian Federation. The value of the valuation must be indicated in the regulation on the branch of a foreign legal entity.
The term for registering a joint venture is one month from the date of receipt of documents by the relevant registration authority. Within this period, the joint venture must be registered or the applicant is informed of the reasons for refusal. A commercial organization with foreign investments may be denied state registration in order to protect the foundations of the constitutional order, morality, health, rights and legitimate interests of others, to ensure the defense of the country and the security of the state.
The investor can appeal the refusal in court. Refusal in the state registration of the KOII is also possible in case of violation of the procedure for the formation of such an enterprise established by the legislation in force on the territory of the Russian Federation or inconsistency of the submitted documents.
If the representation of the interests of a foreign legal entity in Russia is of a permanent nature, it can be accredited in Russia in order to receive certain benefits and benefits.
Accreditation is a special permission of the state body of the Russian Federation (or an organization authorized by the state) to open a representative office of a foreign company in Russia.
Accreditation of a foreign legal entity:
1) enables a foreign company to receive VAT benefits when renting office and residential premises (non-accredited firms do not receive this benefit);
2) gives the right to a foreign company to accredit its foreign employees in the Russian Federation, which legalizes their presence and labor activity in the Russian Federation;
3) allows the company to temporarily import office equipment (furniture, office equipment, etc.) and cars necessary for the implementation of its activities into the Russian Federation duty-free.
In Moscow, a representative office of a foreign company must be entered in the citywide register. The registration process includes the following steps:
Submission of documents in accordance with the requirements of the Moscow Registration Chamber;
Obtaining a temporary certificate;
Ordering a seal of a representative office;
Obtaining codes from the State Statistics Committee (Goskomstat);
Registration with the tax office;
Registration with the Compulsory Medical Insurance Fund:
Registration with the Pension Fund;
Registration with the Social Insurance Fund;
Registration with the Employment Fund;
Notarization of cards with signatures of the head of the representative office and accountant, signing of a banking service agreement;
Opening a bank account;
Delivery of a set of documents for the exchange of a temporary certificate of registration for a permanent one.
Offshore legislation is a wide field of opportunities aimed at optimizing the activities of various businesses. In this case, the method of making profits is reduced to a clear algorithm of actions that are carried out on a global scale. It is most correct to consider offshores as a kind of tool for international trade, tax and financial planning, capital diversification, which takes into account not only the profitability of investing in various projects, but also the degree of risk of investments made. We can say that this is the essence of offshore operations.
Offshore operations are legal processes. They are carried out on behalf of various structures related to entrepreneurial activity. Holdings, funds, companies and other organizations are registered in the territories of jurisdictions that have a preferential tax regime and convenient financial laws. In simpler terms, this is a legally permissible list of services that certain territories provide to people working in a business environment for remuneration in the form of regular annual fees and charges.
Types of offshore operations
Like the offshore companies themselves, operations carried out in territories with favorable conditions for investors differ significantly from each other. The situation in the world today is such that the control of international taxation is becoming more and more strict. Gradually, some countries are beginning to offer new financial instruments that, on the one hand, would be beneficial for entrepreneurs, and on the other hand, would not be prohibited by the international community. Simultaneously with the changing rules, offshore companies are also modernizing their offers.
The most popular offshore services
- Professional consulting assistance
Working with offshore companies initially involves the right choice of strategy, the solution of the issue regarding the location of the business and its production facilities (if necessary), the selection of a state with the most favorable tax legislation.
- Registration of a company in jurisdictions
This service is aimed at working out the maximum profitability of the business. It allows you to work on behalf of a company from the most legally eligible country.
- Opening bank accounts in institutions of advantageous jurisdiction
This service is aimed at maintaining the secrecy of deposits, guarantees the security of finances, their availability for commercial transactions.
- Nominee service and trust management
This proposal involves the hiring of persons who will be authorized to represent the company in state structures on the international market. It makes it possible to keep secret the names of the real owners of the business and beneficiaries. Today, there is a tendency when, under pressure from the world community, many offshore companies begin to open their own registries.
- Financial management, investment injections, purchase / possession / disposal of property, various buying / selling operations.
Trends in the international arena change regularly. Some offshore instruments lose their relevance and are replaced by new or modernized ones. For example, until recently common trusts are now built into the structures of holding companies, although before that they were used privately. Offshore services, primarily related to the banking sector and tax planning, are in the greatest demand.
Tax optimization tools
If we talk about the main goal of using offshore jurisdictions, then it is the only one - tax optimization. The essence of the procedure is the selection of the most efficient and low-cost business model, in which it will be possible to save most of the income without violating the laws. In this case, tangible savings are achieved by reducing tax expenses due to the competent interpretation of legislative norms and the optimal selection of the method of locating the company and its assets. In parallel with the growth of profits, a businessman receives other benefits, for example, in the form of increased business confidentiality, access to international lending programs, etc.
Operations that relate to the field of tax planning are divided into four vectors:
- selection of a location suitable for the company, during which management features, the structure of divisions, asset control are taken into account;
- selection of legal forms aimed at increasing tax efficiency;
- conducting business transactions within the framework of an advantageous legal field, their documentary support;
- work on the differentiation of the received profits, their placement in the territories of reliable and safe jurisdictions.
Such jurisdictions, which are convenient for carrying out the above operations, are usually defined by the term "tax havens". For the most part, these are traditional offshore companies, although such European states as Cyprus, Luxembourg and Switzerland also provide quite favorable conditions today. Most often, trading and ship-owning (Morocco, Panama, Singapore, etc.) companies are opened in suitable jurisdictions.
It is important for an investor to realize that the effectiveness and legality of offshore use can only be fully ensured by an integrated approach. In particular, great attention should be paid to working with banking organizations through which almost all financial flows pass.
Offshore banking
In this case we are talking on the provision of services to non-residents, which makes it possible to control taxation, to carry out highly efficient work in the transnational market. Recently, the loyalty of world leaders, as well as international organizations, to banking institutions from traditional offshore territories has significantly decreased. Now it is much more profitable to work in jurisdictions with a clean reputation and a stable economy. Sometimes the anonymity of the investor can suffer from this, however, this is not the case with Switzerland and Liechtenstein. Here, everything is, as before, confidential (with the exception of personalized requests from local authorities).
Offshore bank accounts are an opportunity to:
- control capital flows in the course of international entrepreneurial activity;
- allocate finances in accordance with the goals (investments, savings, production activities, etc.);
- accumulate capital, store finances safely, etc.
Offshore banking is an excellent tool for protecting the business interests of entrepreneurs, but you need to know how to use it. Ignorance of the laws and the real state of the market situation can lead to problems, including criminal prosecution. The best experts of Private Financial Services are ready to organize the investor's business in such a way that offshore operations are legal and as profitable as possible.
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Volgograd 2006
Introduction
Rigid (if not cruel) tax legislation of any state automatically encourages a businessman to look for ways of legal tax planning. And this causes the emergence of a corresponding market for services. Legal tax planning is not just a well-established accounting and correct preparation of balance sheets, but a legal opportunity to either not pay any taxes at all, or to reduce their level to a minimum compared to the level of current rates.
Offshore business is gaining more and more weight in the global capital turnover, its features and new opportunities that it offers deserve constant attention. It is no secret that quite a lot of foreign businessmen conduct their business through offshore companies. In Europe, taxes are high, and many try to minimize them, and in Denmark, for example, they joke that tax evasion is a national sport (up to 62%).
1. Basic definitions
1.1 The concept of offshore and offshore operations
The term “offshore”, “offshore” came to the Russian language from the English language, where “off-shore” literally means “out of the coast”, “on the high seas”, “isolated”. In modern economic literature, this term refers to one of the varieties of special economic zones, specific form organization of commercial activities. Offshore (offshore) - the term used for the world's financial centers, as well as some types of banking operations. The term offshore is also used to refer to centers where credit and other institutions (national, foreign) carry out transactions with non-residents (foreign individuals and legal entities) in a foreign currency for a given country. At the same time, for institutions (companies) registered in these centers, a particularly favorable tax regime is created, up to a complete exemption from taxation.
The principle of tax minimization on a legal basis is the basis of offshore operations.
Offshore operations in their content are a financial instrument that, without violating the current legislation, is used to plan and minimize taxation and to protect trade secrets.
Offshore operations include:
· consulting services on minimization of taxation, selection of an offshore zone;
· services for the creation and registration of offshore enterprises (companies), for the opening of bank accounts, for the sale of these enterprises;
· services for the effective use of offshore companies in international commercial transactions;
· offshore company management services through a trustee.
A trustee (nominal owner, nominee partner) is actually a nominee who is introduced into the owners of the company and holds the post of director, but under the terms of the memorandum of association and the charter is deprived of almost all rights.
· speculative money management operations.
investment,
possession and disposal of foreign property,
real estate transactions,
trust transactions
The essence of the concept of a trust (trust property) is that one person, the founder of the trust, transfers his property to another person, the trustee, so that he owns and manages it in the interests of a third party, beneficiary or beneficiary.
By establishing a trust in one of the tax-free jurisdictions, in many cases it is possible to withdraw funds from the taxes of the host country of the founder and beneficiary. First of all, this applies to property taxes, since the property transferred to the trust no longer legally belongs to either its former owner or beneficiary. The same generally applies to capital gains tax. The income of the beneficiary received from the trust is usually subject to taxation under the rules of his country of residence, but only after they are actually paid to him, which allows you to delay their payment indefinitely, reinvesting profits. In some cases, you can evade inheritance tax, but you need to keep in mind that usually the transfer of property to an overseas trust is subject to gift tax. However, in each specific case, a thorough analysis of the tax legislation of all those countries in which the residents of the persons related to this trust are residents is necessary.
· transfer operations;
currency dealing
Currency dealing (also forex dealing, forex trading, forex dealing, fx dealing, forex trading) is the operation of buying and selling currencies on the global Forex currency market in order to make a profit by changing exchange rates over time.
The difference between the purchase and sale price is the profit or loss from the transaction. The main task of a trader is to buy some currency cheaper and sell it more expensive.
Clients (individuals or companies) can engage in currency dealing through dealing centers, dealing companies, dealing departments of banks.
Companies that provide trading services on the world currency markets are called dealing centers.
Usually, a chain of intermediaries is built between the player and the international currency market: the dealing center itself; banks and financial intermediaries, which form large lots out of a large flow of applications from small players. In addition, they take on the risks associated with non-professional players participating in currency speculation.
tax planning consulting services
Tax planning is the choice of the optimal combination and construction of legal relations and options, their interpretation within the framework of the current tax legislation. In other words, tax planning is a choice between various options for the implementation of activities and the allocation of assets, aimed at achieving the lowest possible level of tax liabilities arising from this.
The tax planning process includes four stages:
1) resolving the issue of the most tax-favorable location (registration) of the organization itself, its governing bodies, main, production and commercial divisions;
2) the choice of the legal form of the organization and its structure, taking into account the nature and purpose of its activities;
3) correct and full use of the possibilities of tax legislation and tax benefits in determining taxable income and calculating tax liabilities, as well as their mutual linking with the legal forms of registration of transactions;
4) rational from a tax point of view, the allocation of profits and other cash savings, the use of working capital.
1.2 Main types of tax jurisdictions
In order to effectively use the tax advantages provided by individual countries and territories, it is necessary to define general guidelines. One of these guidelines is the type of tax jurisdiction. According to it, all countries of the world can be divided into six groups:
· There is no taxation of income of any kind (Anquilla, Bahamas, Bermuda, Cayman Islands, Nauru, Turks and Caicos Islands);
Full exemption for certain activities and businesses (Alderney, Antigua, Aruba, Belize, British Virgin Islands, Canary Islands - Spain, Cook Islands, Gibraltar, Grenada, Guernsey, Isle of Man, State of Israel, Jersey, Kingdom of Jordan , Liberia, Liechtenstein, Madeira - Portugal, Marshall Islands, Ingushetia - Russian Federation, etc.);
· A reduced level of taxation rates for income from certain types of entrepreneurial activity is established (certain countries and territories included in the second group).
· A special (preferential) tax regime is provided for holding companies (Austria, Germany, Denmark, Spain, Luxembourg, the Netherlands, the United Kingdom of Great Britain and Northern Ireland, France, Sweden)
· A standard or high level of income taxation is established, but additional benefits are provided for legal entities - non-residents (Barbados, British Virgin Islands, Gibraltar, Grenada, Ireland, Singapore and Swaziland);
· The territorial principle of taxation is used (Costa Rica, Hong Kong, Lebanon, Malaysia, Panama, Singapore and South Africa).
Some jurisdictions for foreign entrepreneurs, through a system of tax incentives, create a regime close to offshore, but without the formal conduct of an offshore regime (offshore centers).
In classic offshore centers the offshore regime has been introduced and operates on the basis of special legislative acts, while in actual offshore centers there is no formal offshore regime, but tax regulation allows to reduce the amount of taxes paid.
Tax incentives are considered the basis of the offshore regime, but not only them. Offshore companies are provided, for example, with preferential conditions for doing business: currency autonomy, customs privileges when importing goods (services, works), simplified registration and reporting procedures, guarantee of banking and commercial secrets, benefits in the field of administrative control, compliance with the principle of strict confidentiality, guarantee business security, the use of electronic communications in management.
When choosing the place of registration of an offshore company, it is necessary to take into account such factors as the political and economic stability of the country, its geographical location, the currency control system, tax incentives, confidentiality of information regarding the owners of the company and other factors.
For example, for trading and manufacturing companies, geographic factors come to the fore, since their business activity is related to the transportation of products and goods, the proximity of the raw material base and sales markets, and a sufficient amount of labor resources. Activities of offshore companies in the financial and credit sector, insurance, provision of consulting services, etc. does not depend on the region where such firms are located, and they can be located anywhere in the world where modern communications and means of communication are available.
The existing approaches to solving the problem of choosing the most favorable jurisdiction (“geographical classification” developed by K. Doggart, the classification based on the principle of prestige and reliability proposed by R. White) make it possible to divide all regions of the world into five large groups according to the degree of decreasing trust in the country where the company is located :
· Western European countries that are members of the EU and EFTA;
· small countries of Western Europe and some countries of Eastern Europe;
the Mediterranean;
· Asian-Pacific area;
Caribbean region.
2. Offshore companies
2.1 The concept and features of the organization
Companies registered in an offshore center or zone are called offshore companies.
The term "offshore company" is not legal. The concept of an offshore company and its status are determined by a special law and other similar regulations.
The procedure for registering an offshore company is extremely simplified. There are usually no minimum authorized capital requirements. The actual registration and all legal issues are resolved by specialized consulting organizations, the client only has to pay the money and get a ready-made offshore company at his disposal. Usually the authorities of offshore zones create a special state body or an independent organization whose main task is to provide a wide range of consulting, financial, legal, information services to entrepreneurs who are interested in the offshore zone.
As a rule, an offshore company is not required to maintain ordinary accounting records, conduct independent audits and provide accounting and tax reporting. However, offshore legislation often imposes an obligation for an offshore company to provide an annual report, which indicates only the main performance indicators of the company and information about the founders and directors.
Offshore jurisdiction laws usually require that a registered office be located on its territory. The registered office is not a functioning office of an offshore company. As a rule, this is simply the address where the authorities or other persons can contact the representative (agent) of the offshore company. In other words, it cannot be used to manage a business. The fact of having a resident office is of no small importance, since only in this case the company can count on the benefits and preferences stipulated by the relevant tax treaties. The presence of a resident office improves the overall image of an offshore company, which is also very significant.
Offshore companies are given the opportunity to have accounts in any banks in the world and make transactions in any currency, there are no restrictions on the export and import of capital. An offshore company may have representative offices and branches abroad. The operating office of the company may also be located abroad. However, in many cases an offshore company operates without such an office.
To record and regulate the activities of offshore companies, the authorities of the jurisdiction create authorized agents (secretary companies), whose services are paid. The duties of the secretary include maintaining internal company records, processing correspondence, compiling and submitting financial statements. Through it contacts with official bodies are carried out.
The main features of an offshore company are related to its non-resident status. The sign of non-resident does not mean that the offshore company is considered in the jurisdiction of its registration as a foreign business entity. The sign of non-residence means that the center of command and control of the offshore company is located abroad and all operations of the offshore company are also carried out abroad. That is, despite the fact that the company is legally registered in this country, from an economic point of view, it is not native to this jurisdiction. For its functioning, it is sufficient to have the formal attributes of the company - owners, directors (usually at least two directors are required), articles of association, bank account, and a set of registration documents.
The laws governing the creation and operation of offshore companies contain a number of requirements that apply to an offshore company. Typically, these requirements boil down to three main principles:
· owners of an offshore company cannot be residents of this offshore jurisdiction;
· an offshore company does not have the right to conduct business operations and have any property and sources of income in the territory of this jurisdiction;
· management of an offshore company, including signing contracts, holding general meetings and meetings of the board of directors, must be carried out abroad.
In some jurisdictions, a more complex system of features is used to determine residency. Tax liability is established on the basis of the principle of the command and control center, which takes into account the location of meetings of the board of directors and the conclusion of transactions, the place of residence of the majority of shareholders, the location of accounting books, the register of shareholders, company seal, bank accounts, as well as the localization of the company's profit center. The combination of these factors determines the residency of the company. In practice, however, the three conditions mentioned above are decisive.
So, an offshore company that carries out its business abroad, provided that its shareholders and directors are not residents of an offshore jurisdiction, can be qualified as non-resident and in accordance with offshore legislation. zones are exempt from taxes.
As already noted, tax incentives are considered the basis of the offshore regime. However, the abolition of taxes does not mean complete exemption from tax obligations. As a rule, fees are charged, the amount of which does not directly depend on the turnover and profit of the company:
· the registration fee, the rates of which can be fixed both in a fixed amount and interconnected with the size of the authorized capital of registered offshore companies.
· The administration of offshore centers charges the so-called annual fee. Recently, there has been a tendency to establish the dependence of the size of the annual fee on the amount of the authorized capital, specialization, and estimated turnover of the offshore company. There is a transition from the unification of annual fee rates to their differentiation, taking into account the profitability of the organization, its size and activity in the capital market.
· Re-registration fee, which is paid upon submission of the annual report. Its value is significantly inferior to the rates of the annual fee. This type collection has a rather limited distribution in offshore centers.
2.2 Basic functions
The main functions of offshore companies are numerous. An enterprise registered in an offshore center or in a zone with a preferential tax regime can practically act in one (or more) of the following qualities:
1) Import supplier.
As a rule, overpricing is applied, which makes it possible to reduce the taxable income of an enterprise that sells goods within the country. This behavior model has its drawbacks. When the price of imported goods is overstated, payments for those taxes and fees, the object of which is the customs value of the goods, increase. Such taxes include: customs duties and fees, value added tax levied when goods are imported into the country for the purpose of sale.
There are also options for tax schemes, when with the help of an offshore company, the prices of imported goods are underestimated. This applies in cases where further processing of raw materials or semi-finished products is carried out in a preferential economic zone (free enterprise zone, free economic zone, zone with a preferential level of profit taxation, etc.) of the country importing the goods. Understating the contractual import price makes it possible to reduce the amount of customs import duties and value added tax paid when importing goods, the buyer when exporting.
2) Buyer at export.
The use of an offshore company in the export of goods usually allows you to sell the goods at extremely low prices, and then resell the offshore company to the final buyer at market (world) prices. The taxable profit of the national exporter in this case remains minimal, and the difference between the real and underestimated price during export forms the profit of an offshore company registered in a country with a preferential or zero level of income taxation.
3) The owner of the property.
When using an offshore company in this capacity, it is either transferred or sold, or some property is initially acquired directly on it. An offshore company as the owner of the property is usually used to achieve the following main goals:
protection of property from foreclosure on the obligations of the debtor;
minimization of tax liabilities.
Acquisition of property for an offshore company avoids the situation when this property is levied for tax or other obligations of a person. Typically, such measures are taken in relation to immovable property, as well as certain types of expensive movable property in cases where the owner of this property has reason to believe that this property may be levied as a result of non-fulfillment of any obligations by him (tax debt, failure to return loans, penalties, damages, etc.).
An offshore company owner of property can be used to minimize liabilities for the following types of taxation: property taxes; on taxes on income from the use of property; on taxes on the sale of property; for inheritance and gift taxes.
4) Lessor of real estate and equipment.
When using an offshore company as a lessor (lessor), some property is sold to it, and then it is acquired by other persons under a lease agreement. For the lessee of property - the lessee, the main benefit is that leasing (lease) payments are deducted when calculating tax liabilities but income tax. If the enterprise owned such property, it would only be entitled to a depreciation deduction in accordance with the rules of the relevant national legislation. Depreciation rates and conditions may not always be sufficiently favorable. In addition, subject to certain conditions, the tenant may not pay property tax.
In Russia, in order for the leased property not to be included in the object of taxation on the property of enterprises and organizations, it is enough that the terms of the lease agreement do not provide for the possibility of transferring ownership to the tenant after the expiration of the relevant agreement. In a number of other countries, the possibility of transferring ownership of the leased property to the tenant after the expiration of the contract does not automatically entail the inclusion of this property in the tax base for the corresponding property tax.
5) Investor.
An offshore company attracts funds from founders or third parties and invests them in the authorized capital of subsidiaries. Using an offshore company as an investor allows you to achieve the following main goals: to minimize taxation when importing property and current activities of a subsidiary of an offshore company, as well as to overcome certain restrictions and prohibitions established in the country of operation.
Minimization of taxation when importing property is possible as a result of the fact that, in addition to cash, equipment, real estate, and various intangible assets can be contributed to the authorized capital of a subsidiary.
A number of additional opportunities to minimize taxation lies in the fact that property is contributed to the authorized capital of a subsidiary company not at the cost of its acquisition, but at the assessment of the founders of the company. In other words, there are opportunities for both overestimation and underestimation of the value of property imported for the purpose of contributing to the authorized capital.
Minimization of the current tax liabilities of a subsidiary can be carried out both by varying prices for the mutual supply of goods and services between the parent and subsidiary, and by their credit, licensing and rental relationships. These options may be limited by domestic tax laws, separate double taxation treaties, special domestic and international transfer pricing laws.
Overcoming certain restrictions and prohibitions is achieved by the fact that relations with foreign creditors, borrowers, lessors, insurers and other business partners are carried out not by a national subsidiary, but by an offshore company.
6) Shareholder (holding).
The function of an offshore company as a shareholder of a subsidiary (holding) is, in principle, similar to the function of an offshore company as an investor. However, there are certain specifics. In some international tax planning schemes, it is sometimes advisable to invest in the authorized capital of a subsidiary and then resell the shares of the parent company located in another tax jurisdiction, or eliminate the intermediate link through reorganization (liquidation). In other words, the investment function (making a share in the authorized capital of a subsidiary) and the holding function (ownership of shares in a subsidiary) can be performed by different companies, depending on the specific goals and objectives of the international scheme being created. Typically, such maneuvers are undertaken when the domestic tax laws of either the country of incorporation or the country of active economic activity are changed, or when the terms of double tax treaties are revised. Such schemes can be especially effective in cases where the contribution to the authorized capital is real estate, expensive complete equipment, etc.
If an offshore investor company is more often registered with a focus on tax incentives when importing equipment (contribution to the authorized capital) for the initial stage of enterprise deployment, then when establishing a holding company, the main attention is paid to the possibility of unhindered transfer of capital from a subsidiary to a parent company. In other words, a holding is usually created for long-term investment management, optimal construction of a financial flow scheme.
7) Bank account holder.
An offshore company as a holder of a bank account attracts special attention of potential users and countries with strict rules of currency regulation and currency control. Usually such companies are established in offshore centers with a low cost of establishing companies. The main problem in creating such a scheme is that in countries with strict foreign exchange regulations, unlicensed export of capital is prohibited. Russia is one of those countries. Legal ways of implementing such a scheme by Russian residents can only be the establishment of a company without paying the authorized capital (without transferring money from Russia) or the creation of an offshore company at a time when a Russian citizen is not subject to currency restrictions (for example, during a long stay abroad) .
8) Lender.
An offshore creditor company is used to move capital to the country of operation. Compared to investing in equity capital, a loan has a number of advantages. The main advantage is the ability to move funds at almost any time, while in order to deposit funds into the authorized capital of a subsidiary, it is often necessary to make, approve and register a decision to increase the authorized capital. In addition, an increase in the authorized capital in excess of the established amounts may require additional approvals from the antimonopoly authorities, special departments that control activities in this industry (banking, insurance, investment, etc.). The contribution of additional funds to the authorized capital is possible only from shareholders, and crediting of the enterprise can be carried out through any third parties.
When investing funds in the authorized capital of a subsidiary, the possibilities of reverse movement of funds are significantly limited. The main way to return funds when investing them is the payment of dividends, however, the peculiarities of the national legislation of the country of the subsidiary may prevent such a transfer, since there are not always opportunities for paying dividends in the absence of profit;
The main tax advantage of transferring funds in the form of repayment of a loan and interest on it, in comparison with the transfer of dividends, is that the repayment of the loan and the corresponding interest is made before the income tax of the enterprise is taxed. In this case, the amount of interest paid can be attributed to the reduction of the taxable base. In addition, the tax treatment of interest income is generally more favorable than that of dividends.
In fairness, it should be noted that the return of invested funds can also be carried out in other ways, and not only through the distribution of dividends. For example, through settlements on copyrights and licenses, through settlements on equipment rental, through export-import contracts between parent and subsidiary enterprises, and also in other ways.
9) Borrower (borrower).
An offshore company as a borrower (borrower) can be used to expand the possibilities of using funds, as well as as an element of some other scheme. An offshore company, by attracting funds at low interest rates and providing them to the same person or third parties at higher rates, helps to reduce the income tax base. Schemes with interest payments at an overestimated level have become widespread. If an offshore company is not required to withhold tax at source when paying interest income, then the recipient of this income has significant advantages due to the fact that the interest income received is usually subject to a more favorable taxation regime compared to the taxation regime for income from active economic activity.
As borrowers, offshore companies are also used in cases where, for one reason or another, it is unprofitable to disclose the relationship of counterparty enterprises, that is, an offshore company is used to redistribute funds within a financial and industrial group.
Other functions of offshore companies also include:
intermediary - an independent agent;
the lessor of real estate and equipment;
the mortgagee;
guarantor for obligations;
· employer;
the shipowner;
carrier in the field of international trade;
the insurer;
a trustee;
contractor
participant in barter transactions
3. Advantages and dangers of offshore
According to recent estimates, more than half of the world's capital is placed in banks, trusts and investment companies in offshore countries. Over the past decade, the number of companies opened annually in offshore jurisdictions has exceeded 65,000. What is the attraction of offshore jurisdictions? What benefits can be derived from an offshore company?
Among the obvious advantages of an offshore company are the following: complete financial confidentiality, protection of funds, reduced income tax, no inheritance tax, limited legal liability, reduced management costs, no currency exchange control, recognition, support and subsidization of the local government, non-disclosure of data of owners and directors, no international trade tariffs, no export/import volume restrictions, no costly bureaucracy. However, the use of offshore companies is fraught with some dangers.
Let's assume this situation. In the early 90s. a businessman involved in the import of food, for the convenience of settlements with foreign partners, registered a company in one of the offshore jurisdictions. A few years later, he changed his business profile, this offshore was no longer needed and turned into a convenient family wallet - a place to safely store savings. And recently, a businessman thought about how to make the funds available in the company's account work. But most likely he won't succeed. The matter is that recently requirements of the western companies to cleanliness of money have sharply increased. This is related to the fight against money laundering. Formally, this does not apply to this businessman. But in practice, he will most likely hear something like this: “If you want to invest in our fund, insurance policy, etc., provide information about the activities of your company, its partners, contracts. It would be nice to see your report Last year, learn more about the directors and owners of the company. We will study the documents you provided and if we are convinced that we are dealing with “good” money, we will be glad to see you among our clients. If we have any doubts, then we will not contact your money. We don't want to risk our reputation."
In addition, there is the risk of a "hundredth buyer" of an offshore company. The same offshore company can be sold many times and, of course, to different buyers. The risk for a company selling such a company is practically reduced to zero, it is only important not to sell such a company at least twice in the same city, and even better in the same country, since they will suddenly take two different owners of one and of the same company and want to accredit a representative office of this company in the territory of the Russian Federation.
Another place where a company may be found to have been sold multiple times may be the bank where the offshore company's accounts are opened. Although, given the number of banks available abroad, the risk of falling into the above situation is minimal.
There is also a risk of losing money on the account of an offshore company. Losing money from an offshore company account opened in a foreign bank is possible due to many reasons.
For example, you have acquired an offshore company in a Russian company that is under the control of criminal structures. With the help of the same company, you opened an account in a bank and deposited funds on this account.
There is a danger of deception of clients by registrars, that is, the sale of companies with a partially or completely false set of documents. Subsequently, it will be very difficult to find representatives of the company with whom you communicated only by e-mail.
Also, those wishing to place money abroad run the risk of running into a so-called “fake” firm trying to pass as a financial services provider. The most common variant of account fraud: the client is offered the service of opening a bank account for an offshore company, the intermediary arranges for the signing of a bank card and other documents necessary for opening an account, and then elegantly supplements the client's signatures with another - often non-existent person, or even simply replaces the signature sample card. And after a more or less significant amount appears on your account, a payment order is provided to the bank with a request to send them to some offshore account, in the composition of the managers of which you are not listed.
Until recently, another scheme was popular. When selling a foreign company to a client at a favorable price, the intermediary simultaneously makes an offer to open an account for it in a foreign bank. At the same time, the bank may bear a name that practically duplicates the name of a well-known international bank (for example, Cities Bank instead of Citibank). They also promise high interest rates on deposits, low rates on credit cards, etc. At the same time, the bank itself can demonstrate that it has correspondent accounts in the USA, Austria, Switzerland, etc. In one of these countries, there will also be a bank address displayed on all documents used to open accounts. In fact, the bank has nothing to do with the United States or Switzerland - it is registered in one of the offshore jurisdictions in the cheapest option, and its owners may be the owners of the registrar company. As a rule, after some time, having “accumulated” client funds, the crooks simply disappear.
Conclusion
The word "offshore" has a lot of associations even for a simple reader and TV viewer, who has nothing to do with business in general, or with offshore affairs in particular. Offshores are "black holes" through which capital leaves Russia. Offshore - this is Cyprus in the early 90s, "new Russian freemen", a reserve of bandits in crimson jackets.
In fact, until 1999, inclusive, through various offshore companies, fabulous capitals were taken out of Russia. On the other hand, Cyprus, after joining the EU, has lost both the gloomy glory of the “dirty money” transporter state and the attractiveness for various semi-criminal businesses - in return, it has acquired a reputation as a jurisdiction that is beneficial for doing honest business. Most of the states fighting "wild" offshore companies have already crossed Cyprus off the black list, which includes offshore companies that allow money laundering.
The leading world powers have been waging a real war with "black" offshore companies for more than a decade, and especially now, when the issue of financing global terrorism has become aggravated. Offshores are rapidly civilizing. Of course, there are also such jurisdictions as the Marshall Islands, Liberia, Vanuatu - offshore companies registered on the territory of these states allow you to legally "pump" huge amounts of obscure origin. Nevertheless, the measures taken by the financial structures of economically developed countries allow us to expect that "pirate" offshore companies will become a thing of the past in the same way that the pirate city-states of Crete and Phoenicia disappeared thousands of years ago, and other offshore companies - civilized ones - will take their place. and focused on business rather than criminal operations.
List of used literature
1. Balabanov I.T., Balabanov A.I. Foreign economic relations: tutorial. - M., 2000.
2. Babanin V.A. Tax regulation of offshore activities / ECO No. 3, 2004.
3. L.I. Komisarova. Basic principles of the tax policy of offshore zones / Digest Finance No. 9, 2001.
4. Ushakov D.L. Offshore zones in the practice of Russian taxpayers. - M., 2001.
5. Chernyavsky S.P. International offshore business and banks. - M., 2002.
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Offshore schemes for Internet business are the most important component of success. Why is it so difficult and important? There are two reasons: taxes and personal security.
The fact is that the specifics of the Internet is such that by registering a company, for example, in Belize, you can put servers there and provide services or trade virtual goods around the world. It would seem that this is an ideal option that allows you to do business without paying any taxes. Its implementation is elementary - just contact any organization dealing with offshore companies and in a couple of hours you will be issued a legal entity, open a current account and provide a director. But, unfortunately, this scheme will not work.
Offshore operations
"Underwater rocks"
Firstly, any Internet business is tied to, that is, accepting payments from credit cards. The problem is that VISA and MasterCard almost directly prohibit banks from connecting legal entities from the offshore blacklist. And payment systems either do not work with such companies, or charge “draconian” commissions for offshore operations.
Secondly, the most interesting offshore technologies, such as hiding the names of beneficiaries or truly anonymous bank accounts, work only with the most odious subjects of international law, and it is not by chance that the vast majority of medium and large companies refuse to deal with these jurisdictions.
Thirdly, hosting a server in remote parts of the world is impossible due to poor Internet, and finding "fixed assets" from any other country leads to corresponding legal and tax consequences in that state.
The list of troubles that independent attempts at "tax planning" lead to can be continued for a long time. What is the only possibility of being arrested when crossing the border of states such as the United States, who believe that taxes should be paid from the profits received from their citizens to their treasury, regardless of where the company is registered. Of course, when conducting an Internet business, such issues become especially relevant.
For these and many other reasons, the development of a high-quality offshore scheme is a prerequisite not only for minimizing the tax base, but also for the personal safety of Internet company owners.
The right offshore technology
Correct, when solving problems of minimizing the taxable base in offshore operations, is another method. Offshore companies combine into structures with firms from prestigious jurisdictions. Each legal entity in such an offshore scheme is selected and registered for the solution of one or two tasks in the state whose legislation allows them to be solved in the best way.
Such offshore technologies for their work require the conclusion of a large number of international agreements. The development of these agreements is in itself a non-trivial task, even for a specialist. In addition, in the process of developing schemes for offshore operations, one should always take into account the possibilities of tax planning when conducting international activities.
Given the imperfection of legislation in the field of Internet commerce and its inconsistency even within such entities as the European Union, the development of a high-quality business scheme using specific offshore methods is a task that is best left to professionals.
Our services:
Legal justification for diverting financial flows to offshore zones
Writing contracts in any languages according to the developed schemes
Registration of companies and opening bank accounts according to the developed scheme
Opening accounts in foreign banks for established companies
Assessment of risks arising at each stage of business
Create legal entity structures for your business model
Dear Sirs, we are ready to undertake a full range of works for the implementation of your project. If you want to independently perform all legally significant actions, we are ready to provide you with an experienced consultant who will accompany you on all trips related to the registration of companies and the conclusion of contracts. Contact.
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Main stages of cooperation.
Cost and order of work.
At the initial consultation, the customer presents his business model, and our consultants offer preliminary options for the implementation of the project. The customer is told about the possible structure of legal entities, options for financial flows, separate agreements with dispute resolution jurisdictions are outlined, and licensing and tax issues are discussed. Substantiations of the proposed solutions are given. The total cost of the project implementation is preliminary estimated. The price of an hourly initial consultation is 5000 rubles.
The second stage is the creation of a detailed project scheme on paper in the legal, tax, payment and IT sections. As a rule, the result of work at this stage is one A1 or A0 sheet of high detail and several A4 sheets with a phased implementation plan, costs and deadlines. The development of such a scheme and accompanying documents, depending on the complexity, costs from one to ten thousand euros. Terms from one to two or three weeks.
If necessary, at the third stage, individual elements of the scheme can be worked out “in depth”. For example, in the case of purchasing traditional medicine products somewhere in Malaysia, our company's specialists may not have accurate information on the rules of accounting and taxation in this state. In this case, in order to clarify the information, it may be proposed to order a study of these issues in a local audit company. And get information from local lawyers about the need for licensing with real terms and costs “from practitioners”. As a rule, the cost of such work abroad is ten times higher than in the Russian Federation and ranges from 3,000 to 50,000 thousand euros. However, this step is not mandatory.
The last stage is the actual implementation of the project. In accordance with the developed scheme, we carry out the following works for our clients:
Registration of legal entities
Obtaining the necessary licenses
Opening accounts in offshore banks
Development and maintenance of contracts
Connecting companies to payment systems
Trademark registration
Protection of intellectual property
Other Necessary Steps to Start a Business
As a rule, the cost of work at this stage ranges from 5,000 euros for typical trading schemes, to several million when launching large international projects.
Forgive me for being blunt, but running an Internet business from a Russian legal entity is, to put it mildly, not reasonable.
Alexey Zarin
The specifics of online business
An example of an offshore Internet business scheme
The model is legal, tax losses are ~1%, the beneficial owner is not determined
