There is so much conflicting information on the internet about offshore corps...especially after the Panama Papers leak.
I have been doing consulting work to US companies and am in the US travelling 90% of the year and was considering opening a Delaware corp and bank account to make contract processing easier. But there's no real corporate tax saving as compared to creating a corp in the Bahamas or Barbados and do corp to corp billng from there. My thought was i could do the corp to corp billing and then pay myself dividends from the offshore bank transferring the money to canada - i'd still pay income tax on my income but at least I would be lowering my corporate tax rate.
Now i'm reading that I still have to declare I have 100% investment in a Bahamas corp on submitting my tax return, and even though I pay myself a dividend, the fact that i am 'resident' in Canada means i would have to pay the full corporate tax rate for the Bahamas Corp as if it was a Canadian Corp. For this reason i also read Barbados now abolished IBC at 1% corporation tax and now all corps pay local corp tax rate.
I don't have any friends who do offshore corps and I don't have an offshore tax specialist accountant - my accountant doesn't have a clue. Thought I'd ask here if anyone has tips or someone they can refer me to.
I"m not looking at doing tax evasion...just thinking of legal ways to lower it, especially since my work is not in Canada
I have been doing consulting work to US companies and am in the US travelling 90% of the year and was considering opening a Delaware corp and bank account to make contract processing easier. But there's no real corporate tax saving as compared to creating a corp in the Bahamas or Barbados and do corp to corp billng from there. My thought was i could do the corp to corp billing and then pay myself dividends from the offshore bank transferring the money to canada - i'd still pay income tax on my income but at least I would be lowering my corporate tax rate.
Now i'm reading that I still have to declare I have 100% investment in a Bahamas corp on submitting my tax return, and even though I pay myself a dividend, the fact that i am 'resident' in Canada means i would have to pay the full corporate tax rate for the Bahamas Corp as if it was a Canadian Corp. For this reason i also read Barbados now abolished IBC at 1% corporation tax and now all corps pay local corp tax rate.
I don't have any friends who do offshore corps and I don't have an offshore tax specialist accountant - my accountant doesn't have a clue. Thought I'd ask here if anyone has tips or someone they can refer me to.
I"m not looking at doing tax evasion...just thinking of legal ways to lower it, especially since my work is not in Canada