CFC Rules / Controlled Foreign Corporation in consulting practice:
In today's issue, we look at a tax law nightmare. If you live in a country with "Controlled Foreign Corporation Rules" in its tax legislation, you are severely restricted when it comes to running a foreign company.
A foreign company that is classified under the CFC rules is subject to add-back taxation in the country of residence of the shareholder of this company.
As already explained, the profits of the foreign company are subject to income tax in the shareholder's country of residence for shareholders who are natural persons.
Advisory note:
This topic is also relevant for international groups of companies with subsidiaries abroad. Countries without CFC rules therefore make residence in these countries attractive.
Anyone living in the following countries can manage a company in "low-tax countries" without any restriction and without being caught by the add-back taxation:
Belgium / Bulgaria / Chile / Colombia / Croatia / Ecuador / Gibraltar / Hong Kong / Ireland / Luxembourg / Malaysia / Malta / Mauritius / Poland / Philippines / Romania / Saudi Arabia / Switzerland / Singapore / Slovakia / Thailand / Ukraine / Vietnam / Thailand
The list of countries without CFC rules can change constantly and there are many other countries that do not have any add-back taxation.
With a view to the moderate cost of using our business addresses on 5 continents, we address serious entrepreneurs on their way to global entrepreneurship. We create clarity through positioning.
If a foreign company is founded, we will inform every entrepreneur of the requirement to " build up substance" as part of the structuring consultation without being asked.
We make it clear that many competitors completely neglect the issue of "substance build-up" in the context of international tax law.
How to set up a successful international company and do everything right from a multicultural perspective?
? How my team and I support your journey as a global entrepreneur?
➕ Location consulting
- Recording and analysis of the current situation
- Positioning your company
- Optimization of the company website
➕ NEW-WORK workshops and training courses
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