Commodity Trading is an activity which lends itself well to an Offshore Corporate Structuring Plan.
To summarise how it would work is:
- You set up a zero tax International Business Company (“IBC”) with a nil jurisdiction based “Nominee” Director
- The IBC opens an account with a Broker
- You are appointed by the Company 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 know 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.
Local laws can have an impact. Hence you should seek local legal/tax/financial advise before committing to set up a Company for such purposes.
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