Online Trading is an activity which lends itself well to an Offshore Corporate Structuring Plan.
No matter whether you trade forex or metals or commodities or oil/petroleum or futures or options a tax free Offshore Company or IBC (International Business Company) can assist you to minimize the amount of tax you would otherwise have to pay at home.
To summarise how it would work is:
- You set up a zero tax International Business Company (“IBC”)
- The IBC opens an account with a 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 in a certain way)
- 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 banked or reinvested Offshore potentially tax free.
As always local laws can have an impact. So be sure to seek local legal and financial advice before you commit to establishing an Offshore Trading Company.