How To Use an Offshore Company to Trade Forex and or Commodities

Forex and Commodity Trading are activities which lend themselves well to Offshore Corporate Structuring. For details on how you can minimise tax on trading profits using an Offshore Company as your trading vehicle please take a look at this page from our website: http://offshoreincorporate.com/trading-forex-using-an-offshore-company/

 

To summarise how it would work is:

  • You set up a zero tax International Business Company (“IBC”)
  • The IBC opens an account with the Broker
  • You are appointed as the IBC’s authorised trader (ie you place the buy and sell orders on behalf of the company)
  • For all intents and purposes the IBCs trading profits are generated in a nil tax environment tax free/offshore (ie provided the IBC Is structured properly)
  • When you need some living/spending money the IBC pays you a wage, or consulting fees or a commission (eg a percentage of trading profits generated)
  • That living/spending money can be paid to your local bank account (which means it would be assessable income wherever you are ordinarily resident for tax purposes though you should also be able to claim a sizeable amount of allowable deductions eg for home office, car, equipment, insurances, travel, stationary etc etc to reduce the amount of your “taxable” income at home)
  • If you don’t want the authorities to easily see how much money you are earning by way of wages you could use an anonymous ATM or Debit/VISA card to withdraw your wages from an Auto Tele Machine
  • The majority of trading profits could be reinvested Offshore potentially tax free.

 

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