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Offshore Company Formation .

With one of the highest tax rates in the world, the Australian government can take in excess of 50% of your income through various taxes. These include income tax, Medicare levy, fuel tax, capital gains tax, and general sales tax (GST). Since no-one wants to have their income cut in half, many people have been looking for ways in which they can lower their tax liability and save money. One of the most popular ways is to use an offshore company formation.

Unfortunately, offshore company formation with banks abroad is not simple and it has created a lot of legal problems for people who try to do it themselves. Saving money through an offshore company setup is best left to the experts.

The Company You Keep

One of the best ways to take advantage of more favourable foreign tax policies is by starting a company. Not only is a company’s profits taxed at a much lower rate, it is also much easier to take the leap offshore, than it is for an individual.

There are some potential pitfalls, though. If the company is set up wrong, it can result in spending even more money that you actually save in tax, by paying tax overseas AND in Australia. This is because there are very strict tax regulations on overseas companies owned by Australians.

WealthSafe will guide you through around these pitfalls and ensure you save the maximum amount of money by finding you the lowest rate.

Pros and Cons of a Company

There are a number of reasons why starting a company is a good idea, but also there are also some downsides to companies.

The major benefits of companies are that they are separate legal entities, and companies are taxed at a much lower rate.

Tax is a big reason why people start companies. While individuals can pay up to 47% in personal income tax, companies are taxed at a maximum of 30%. This is a massive saving.

From a legal point of view, a company is separate from its owners. This means that if you are a shareholder (owner) of a company, your personal wealth is not affected in the event of legal action.

Unfortunately, there are also some potential problems with starting a company. These include so-called ‘double-tax’, and tight restrictions on company loans.

The potential savings on the lower tax can be substantial, but when profits get paid out it gets taxed on shareholders’ personal rates. This means you can get taxed twice! This is a major reason why more and more company owners are looking structuring their tax overseas.

Another pitfall of a company is shareholder loans. In the past company owners could loan money out of the company in order to try and lower the company’s tax liability. The Australian government has put an end to this by severely restricting these kinds of loans.

Is a company for me?

An offshore company incorporation can be a great way to establish tax structures overseas, thereby saving precious tax dollars. However, it may not be for everyone. Whether it will work for you or not boils down to individual circumstances, and if the pros outweigh the cons in your particular situation. It’s not always a clear-cut decision, and making the wrong one can lead to a financial disaster.

This is why you need advice from an expert. WealthSafe’s team of specialists will help you determine whether starting a company would be in your best interest. We take things like your business structure and base assets into consideration when helping you to select the best way forward.

How do I start a company?

You’re now ready to start a company, but where do you start? It can be quite a daunting process, with forms and documents and many do’s and don’ts. Once again, WealthSafe’s experts will put your mind at ease, by taking care of all the necessary steps to get your company up and running in no time. What’s more, we will ensure your company is set up in such a way that you can legally take full advantage of offshore tax structures. It is our mission to minimise your tax liability and maximise your savings.

Call the Tax Experts

WealthSafe is the only company that specialises in Australian tax. We have more than 20 years of experience guiding companies and individuals towards great tax savings. Warren Black, WealthSafe’s CEO, is a former ATO employee, and Australia’s number one international tax expert. His expertise lies at the heart of the company, and you can rest assured that you will get the same specialist advice and individual treatment.

Offshore Company Formation

Many businesses use an offshore company formation to lower their tax rate.

Call one of our advisors today for a free initial consultation to see how we can make a company work for you, and put your tax dollars back into your pocket.

-Warren Black

WealthSafe CEO

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