Digital Marketing is really any kind of marketing that assist a business owner to make potential buyers aware, via digital means of the business owner’s product or service offering.
Digital Marketers commonly fall into in one of 3 categories ie
- Content marketers (eg someone who writes Blogposts for a particular business);
- Social media marketers (ie someone who would help your business promote its blog articles via placing paid and organic posts on the business’s social media account
- Email marketers ie persons/businesses whose skill is to who draft/send promotional emails to a business’s client base or prospective client base (and sends product promotions to
What do these 3 lines of business all have in common?
All these services can be created and delivered online/via the web.
Web based businesses lends themselves brilliantly to an “Offshore” Corporate Structuring Plan.
Essentially how it works is:
- A nil tax offshore company (commonly an International Business Company “IBC”) is incorporated (with a nil tax jurisdiction resident “Nominee” Director) to own/operate the business
- An Offshore account is set up in a nil tax banking centre
- Customers/clients contract with and pay the IBC
- Every contract (ie in your standard service terms/conditions) should provide that (a) the bargain was concluded Offshore (ie in a /the nil tax environment) and (b) that services will be provided from Offshore
- The IBC Invoices the clients from offshore
- Payment for invoices rendered will be banked free of tax in the first instance
- You or your local company would be sub-contracted by the IBC to actually perform the services
- You would invoice the IBC periodically (eg monthly) for this work which income would be assessable income in your home country – though a smart Tax Accountant should be able to assist you to claim a series of expense against this income (eg home office, equipment, travel, phone/internet/utilities etc) to significantly reduce the amount of tax payable on this income.
- The rest of the income earned by the IBC can be held (and potentially invested) offshore tax free.
Management/Ownership Structure
As hinted at above, if you want to minimise the chances of the IBC being taxed onshore, ideally, the IBC should/would be (and be seen to be) managed and controlled from Offshore. How this can be achieved is by including a Nominee Director as part of the Corporate structure. For details of how that can work click on these links:
Ideally – so you can swear on oath in the event of a tax investigation, law suit or regulatory inquiry – I am not the beneficial owner of this Company, (which could get you around what might otherwise be a substantial tax or legal liability eg imprisonment for tax evasion) you will want to set up a Private Foundation to act as the shareholder of your IBC. (This should also assist you to get around CFC rules ie if you live in a country which has such a law).
With a bespoke legal/admin structure in place you should only be liable to declare and pay tax on income paid to you by your Offshore Company (and/or on any distributions paid to you by the Foundation); The rest of your Consulting Revenue you should be able to bank, and/or invest, Offshore in a nil tax environment.
Local laws can have an impact. Hence you should seek local legal/tax/financial advice before committing to set up an IBC for such purposes.
Would you like to know more? Then please Contact Us:
info@offshorecompaniesinternational.com
