As a company is considered to be a distinct legal entity, residents of high tax countries may be able to reduce the tax they pay by arranging for profits to be attributed to a company which is subject to low or zero tax.
There are numerous ways in which an offshore company can be used to mitigate tax. These include: –
- Property Owning Companies
- Trading Companies
- Investment Companies
- Companies for the avoidance of probate and for privacy
- Professional Service Companies