Reinvoicing is the establishment of a tax haven corporation to act as an intermediary between an exporter and his customers. The profits of this intermediary corporation and the exporter allow the accumulation of some or all profits on transactions to be accrued to the offshore corporation. It should be noticed that a similar structure can be utilized by an importer.
An exporter corporation sells $ 1.000.000 of exports to France normally every year. Assuming cost of goods sold and operating expenses are $600,000. the exporter corporation earns $ 400.000 on its sales before taxes. Taxes will average say $ 160.000 thus reducing net profits to $ 240.000.
The exporter establishes a tax haven corporation to act as intermediary managed by Corporate Business Center & Cie. The exporter corporation sell its products to the tax haven corporation on paper for say $ 600.000. The tax haven corporation in turn sells the goods to the French client for $ 1.000.000. The tax haven corporation, thus earns $ 400.000. Since there are no taxes, $ 400.000 is the net income after taxes. The exporting corporation shows no profit. ($ 600.000 gross sales less $ 600.000 cost of goods sold).
The $ 400.000 in taxfree income is then deposited in a bank account or other investment instrument in London, New York, Miami, Tortola (British Virgin Islands, or Panama according to the wishes of the exporter. The account is under the control of the exporter.
The basic process of reinvoicing saved the exporting corporation say $ 160.000 in taxes less a small reinvoicing charge.
The intermediary corporation is formed in a country that has no taxes on import-export transaction. For example, the British Virgin Islands and Panama have no income taxes on reinvoicing transactions.
To provide anonymity, the nominee officers and directors are provided by Corporate Business Center & Cie who manage the company. Bearer shares are issued and delivered to the owner as proof of ownership.
No, the management company can establish the account with any financial institution in any major financial center in the world. For example, many reinvoicing clients have established bank accounts in New York, Miami, British Virgin Islands or Grenada.
The beneficial owner of the intermediary company provides instructions on a regular basis by facsimile, e-mail, courier, or airmail.
It is the policy of Corporate Business Center & Cie as well as the laws of all the tax haven nations concerned that information is not released without the consent for violations of secrecy laws.
They can be immediately released as instructed by the owner or alternatively they can be accumulated offshore say with a major international bank where interest on deposit accounts is not subject to tax.
No. The merchandise can be sent directly to the exporter’s client. The only functions performed, in Panama, are the preparation and dispatch of the new invoice and the management of the banking operations.
Assuming you ensure that your beneficiaries have access to the bearer shares, then if such a case should occur, they would simply produce the shares to the management company together with some sort of evidence of your incapacitation and all control of the assets will be transferred to them. There would be no transfer taxes, estate duties, or other forms of taxation levied on the assets.
Once the offshore company has been established, Corporate Business Center & Cie will arrange for a post office box, telex, telephone, and facsimile service available for use by the offshore company. The management company will then begin reinvoicing.
Corporate Business Center & Cie employs multilingual personnel capable of handling any type of transaction. The staff is composed of mostly corporate administrators, bankers and accountants.
The set up costs are generally less than one would think which includes letterhead, telephone, telex, facsimile, mail service, as well as a Panamanian or British Virgin Islands tax haven corporation. There will be a small percentage charge on all re-invoicing operations, depending on the amounts of transactions. Please, let us know full details if you contact us.
Reasonable out of pocket expenses are additional. Annual renewal fees are minimal.
Please, do not hesitate to contact us to receive more details.