Even in an offshore merchant account setting, the saying, “ nothing is permanent except death and taxes” applies. People would tend to ask, “ Why go for offshore?”. There are a couple of reasons and one of them is the tax reduction opportunities that an offshore merchant account brings. When you go offshore, you're money is subjected to foreign banking laws and policy.
Most offshore banks lean more into foreign investors. Tax incentives are their way of showing the appreciation. This means lower taxes. Since you don't invest on local operations, less or sometimes no tax at all is imposed at your account. This may sound scrupulous, but it's perfectly within the legal boundaries.
The kinds of taxes that offshore merchant accounts are less exposed to are:
●withholding tax
●stamp duties
●taxes for cheques issued or accepted
This reduction in taxes provide a healthy investment atmosphere. When you're in safe place, you'll be more confident and can concentrate more on making profit. You may wonder where you can actually set up sound offshore merchant accounts.
Read on for more information : Maximizing your Tax Reduction Opportunities in an Offshore Merchant Account
