Can offshore companies really avoid taxes? Can offshore companies really avoid taxes? Can offshore companies avoid paying all taxes? Offshore company registration was very popular before，Almost all companies that want to avoid taxes will think of offshore companies.。But many people don’t understand the tax avoidance operations of offshore companies，As a result, the company has many tax problems，The company faced huge fines。Today, let’s learn about the tax avoidance of offshore companies.。
Offshore companies are famous for their tax exemptions，This has attracted many entrepreneurs to register offshore companies.，Many people will label offshore companies as tax-free。Are all offshore companies tax-free? In fact, it is not completely tax-free，It is possible in some countries and regions，However, some areas still have to pay taxes normally.，Therefore, registered offshore companies must determine whether they need to pay taxes according to local tax regulations.。
Why did the concept of tax exemption arise?，Many people believe that companies registered overseas can enjoy special treatment，Different from domestic companies，In fact, this idea is also applicable，In order to attract global investors, offshore governments，Special laws will be enacted，Exemption from various taxes on corporate income earned abroad。
Give an example：Take Hong Kong as an example，Offshore companies established in Hong Kong follow the principle of source taxation，Simply put, it is business that does not occur in Hong Kong.，There is no need to pay tax，On the contrary, when operating in Hong Kong and having business transactions, profits generated from business transactions need to be accounted for and reported to taxes.，Report on time every year。
Offshore islands like Cayman have tax exemptions of their own，Therefore, it has completely tax-free rights in the place of registration.，But if a Cayman company obtains benefits in China,，Need to pay taxes in China according to Chinese law。 Therefore we can know，Not all offshore companies are tax-free，There are also areas where taxes are levied，There are also tax-free areas，So how do we judge whether an offshore company is eligible for tax exemption?，You can judge the basis for tax exemption from these aspects.。
Tax exemption basis 1) According to form category：Registered companies that enjoy tax exemptions are classified as special units，It is managed by the registration bureau and operators are prohibited from stationing manpower or renting offices locally at the registration place.。 2) According to the definition of income：A local company in the place of registration is a local company，The key is whether the company generates taxable income that complies with local laws and regulations in the place of registration.，If not, there will be no tax burden。
3) No legal basis：The place of registration adopts a personal tax system for companies whose head offices are registered there.，Once the head office is registered there，The operator must honestly declare the company's global income to the competent authority at the place of registration and pay taxes in accordance with the law.。 Therefore, companies that want to use offshore companies to avoid taxes must pay attention to some tax issues.，Know which taxes can be avoided，What taxes still need to be paid?。Hope the above is helpful to everyone。
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