What Is Offshore Tax Planning?
If you are living abroad or working abroad, then you are open to the opportunities of offshore tax planning. There are benefits with being levied offshore taxes and you can’t avail of this tax structure if you are working in your home country. The current scenario forces a lot of people to leave their home country for a good career in their life and if your home country does not offer you with a good career option, it is always better to opt for a career overseas. For such professionals, there is tax planning that can be done and such tax planning activities are known as offshore tax planning. Investing on properties and investments offshore is the basics of offshore tax planning and there are benefits with such investments.
Benefits of Offshore Tax Planning
– Offshore tax planning offers you a lot potential tax saving options mainly because of you having offshore domiciled investments.
– If you are investing offshore, then the profits that you get from those investments can be made to grow tax free.
– Using a good offshore strategy can allow you to manage the repatriation of the assets that you own a lot more efficiently when you plan to return to your home country.
– Offshore banking can also provide you with tax savings, but it is dependent on a lot of factors.
– Non-resident tax structures are different to the tax structures levied on residents and usually the tax rates are lower for non-resident professionals.
Non-Resident Tax Benefits
If you are not a resident of your home country then the taxation of your income will largely be different to the taxation of residents. The main reason for the difference is because; you will pay taxes even though you are not living in your home country and using the infrastructure of your home country. The non-resident tax slabs are a lot more relaxed and it is a face that non-resident taxation has a lot of sops. The tax benefits for non-residents will differ with the country that you are a citizen of and also the number of years you have been a tax payer. Investments that are made out of your home country will not attract taxes and the income from those investments is largely tax free. So if you are a non resident and want to know about non-resident tax benefits, get the help of a professional to make things easier for you.