Our valued sponsor
Euro pacific bank - reliable, safe or no
- Thread starter JackieTsan
- Start date
If your business is not listed then you are not affected. Read this simplified guide also:
https://www.register-iri.com/wp-con...Y-ASKED-QUESTIONS-ON-ECONOMIC-SUBSTANCE-1.pdf
Sleep well.....however your not entirely of the hook.
why I am not entirely of the hook? why you say this? can you please explain?
thank you
Hi @BTCNG and @Martin Everson
I researched this in deep and i wast told that my company (which is IT consulting & licensing & online platforms - nothing with gambling or anything illegal at all) is not in this issue
This is the answer i got :
This law only impacts those holding companies that trading inside the Marshall Islands.
The type of your company is IBC, so it is not related to the Economic Substance Laws and your company is totally legal in Marshall Islands.
So it's ok, isn't it?
Thank you both
thank you
Hi @BTCNG and @Martin Everson
I researched this in deep and i wast told that my company (which is IT consulting & licensing & online platforms - nothing with gambling or anything illegal at all) is not in this issue
This is the answer i got :
This law only impacts those holding companies that trading inside the Marshall Islands.
The type of your company is IBC, so it is not related to the Economic Substance Laws and your company is totally legal in Marshall Islands.
So it's ok, isn't it?
Thank you both
IBC can't be tax resident in Marshall Islands. So where did you declare the company is tax resident and where is the place of its operation? Otherwise it would be considered tax resident in the place of effective control which is the home country of the director. In which case the company will be treated and taxed like a local company in your country.
Yes but the director is not me is nominee which is from Seychelles.
I'm the shareholder only.
So what happens in this case?
Thank you
I'm the shareholder only.
So what happens in this case?
Thank you
So where is the stated place of operation of the Marshall Islands company? Is the nominee a natural person or company?
Nominee is a natural person resident of Seychelles.
I don't think anywhere is stated the operation area. Where should be that written?
Thank you
You understand a Marshall Islands company cannot trade within Marshall Islands so where is it stated that Marshall Islands company is operating.....on Mars? Ask your Seychelles director where the companies place of operation is if you don't know? If place of operation is Seychelles then that is where company will be taxed. If there is no place of operation then it will go to place of effective control.
P.S Seychelles has very high taxes you know
.
Hi @Martin Everson you are totally right.You understand a Marshall Islands company cannot trade within Marshall Islands so where is it stated that Marshall Islands company is operating.....on Mars? Ask your Seychelles director where the companies place of operation is if you don't know? If place of operation is Seychelles then that is where company will be taxed. If there is no place of operation then it will go to place of effective control.
P.S Seychelles has very high taxes you know
I contacted the company that opened the company and they told me they Wrote that I keep the books and the company operates from the country I'm resident now. That becomes really difficult and risky now. What you suggest me to do?
To close it completely they ask 1500 USD.
Shall I give them to get rid of the risk?
What is your suggestion?
Thank you
Just don't renew the company, there is no need to pay to get the company stroke off.
But this will happen next year.
So I need to have it open and registered like that for one-year. Also they told me if I don't pay it remains inactive for 10nyears but it's still open and my name and data are there.
Maybe I should add and nominee shareholder to remove my name from there and let it inactive from next year that will expire? But again it's high cost
Thank you admin
So the company is effectively a local company in your home country now as thats were it is controlled, keeps books etc
.Has the company done any business? If not let it rot. If tax man ever comes to you then the company has never traded and you just tell them that. However closing is always a better idea as tomorrow Marshall Islands can change law and start handing out fines for improper book keeping, non-filing etc etc.
They just said that the company will remain inactive and close after 10 years if I don't pay the renewal fee next year.
If I want to close it any time this has a cost of 1500 USD.
So for any company even if I open in Hong Kong the case is same? So what is the reason anyone is opening offshore and onshore in other countries is he has to pay locally tax?
Thank you
But if I don't use it at all what fine for improper book keeping, non feeling etc ?So the company is effectively a local company in your home country now as thats were it is controlled, keeps books etc
Has the company done any business? If not let it rot. If tax man ever comes to you then the company has never traded and you just tell them that. However closing is always a better idea as tomorrow Marshall Islands can change law and start handing out fines for improper book keeping, non-filing etc etc.
And if I use it why I will get fine if I keep electronically the invoices? Currently the law do not need audit and book keeping etc right?
So if they change I can adapt.
You are more typical and scared than me in these things, I noticed..
Often because they know what they are doing. i.e an expat in Dubai who doesn't want to keep assets in UAE or go through process of opening a UAE company may opt to setup an offshore company. Likewise those in non-CFC countries may also do so. Furthermore offshore companies are important part of inheritance planning to avoid inheritance tax on assets and not so much avoid income tax. There are many many reasons including privacy etc etc.
I was saying about possibility for future laws changing not current situation.
You are more typical and scared than me in these things, I noticed..
Ignorance of rules and law is bliss isnt it...lol?
You just wasted your time and money setting up a company that is tax resident in your home country.....was it worth it? But fear not....lol
@Martin Everson you are possibly right.
this is what the company that opened my company wrote now:
Base on new economic substance in Marshall Islands, you are not resident company so do not need to pay tax in Marshall Islands.
I had never heard from any clients that they must prove their internal tax to avoidance taxes in Marshall Islands.
Because there is still no accounting, auditing report or any report be requested from the government per year.
So you don't need to prove where is your operating country.
And to add @Martin Everson other response :
As i mentioned, you do not need to prove where is your operating country.
Just need tell us where are main countries that you will conduct business outside Marshall Islands.
Then we will note.
If i add nominee Shareholder also, where the company will appear that operate from?
There is no operating countries in your company corporate documents.
This is for our record only.
Still will have my country of current residence, or this can change in the country of the nominee shareholder after (if i switch to nominee shareholder)?
Will be where you confirm to us, and for our record only.
As you see. Thank you
this is what the company that opened my company wrote now:
Base on new economic substance in Marshall Islands, you are not resident company so do not need to pay tax in Marshall Islands.
I had never heard from any clients that they must prove their internal tax to avoidance taxes in Marshall Islands.
Because there is still no accounting, auditing report or any report be requested from the government per year.
So you don't need to prove where is your operating country.
And to add @Martin Everson other response :
As i mentioned, you do not need to prove where is your operating country.
Just need tell us where are main countries that you will conduct business outside Marshall Islands.
Then we will note.
If i add nominee Shareholder also, where the company will appear that operate from?
There is no operating countries in your company corporate documents.
This is for our record only.
Still will have my country of current residence, or this can change in the country of the nominee shareholder after (if i switch to nominee shareholder)?
Will be where you confirm to us, and for our record only.
As you see. Thank you
This is all that matters right now. You have a company tax resident and operating in your country.
You can confirm anything to them I guess going forward just have evidence to support it if taxman comes looking for you.
btw where do you open an account for a Marshall Islands shell company with a Seychelles director these days?
@Martin Everson please read my next posts and please kindly let me know.This is all that matters right now. You have a company tax resident and operating in your country.
You can confirm anything to them I guess going forward just have evidence to support it if taxman comes looking for you.
btw where do you open an account for a Marshall Islands shell company with a Seychelles director these days?
Thank you
sorry missed that part! However, no company will stay "offline" anywhere for 10 years!! They need the renewal fee, if they can't get it the company will be dead after 1 year the latest.
Latest Threads
-
US LLC bank account non resident which state?
- Started by D0naldDuck
- Replies: 1
-
Good jurisdiction for personal startup investments holding company/mini family office
- Started by PhantomOf ThePits
- Replies: 2
-
Are we completely deluded in thinking this could work ?
- Started by Radarjet
- Replies: 30
-
