VAT & TAX CONSULTATION SERVICES

• The Type of Tax to which the Founder of Business is Subject to in his/her Person:

In terms of their income being subject to direct taxation and /or subject to capital gains tax or benefits earned by the founder through companies owned by him/her, whatever was the country from which he/she gets his income or whatever it was its nature, for example, the American citizen’s income is subject to the American taxation system, whether the citizen was living in the United States of America or outside it, since such tax is associated with the founder in his/her person. Another example of this is Egyptian citizens; their income from any source outside the state is not subject to a local tax as long as the work, income and treatment are carried out outside the state. Therefore, they may resort to the establishment of offshore companies to own and manage their offshore business, spend and disburse all expenses outside the Arab Republic of Egypt, and not to transfer any amounts if they reside there.

It should be noted that, in some cases, countries grant full exemption from taxes for in-kind privileges enjoyed by the client from the company he/she works at or the companies he/she deals with. All the above determine the best country and the place of establishment in accordance with the tax to which you will be subject or exempted.

• The Tax to which the Company is Subject and the Tax Treatment at the Client’s Home Country:

All companies are taxed, but the tax’s percentage varies from country to country. Someone may set up a company abroad and transfer their profits from it to be able to calculate the difference in a way that is better than setting up a company in their home country directly. This procedure aims at enjoying the difference of tax exemption if their country has signed tax exemption agreements. One example is if a Swiss national established a company in Singapore to take advantage of the non-double taxation agreement between the two countries instead of establishing a company directly in his home country, since the tax difference may amount to an exemption of 18%.