| Dixcart Trust Corporation |
If an e-business is correctly set up offshore, trading through a computer server sited offshore, then it is possible for the business to pay only the low rate of tax levied by that offshore jurisdiction.
When planning the offshore e-business, it is very important to ensure that the computer servers are physically located offshore, not just administered from an offshore location; thereby preventing an onshore jurisdiction from taxing the trade. Whether the trade to be handled is business to business, or business to the public, the benefits of low tax rates can only be obtained by the setting up of a new company in an offshore location. This can be managed and controlled offshore, including the organisation of the e-business trade and running of the company. This is why Dixcart.Net does not regard the setting up of an offshore web site facility as a sales medium for the products of a client, but as the setting up of a whole new business, where contact with the customers and potential customers (or suppliers) is through the Worldwide Web. The ideal situation is to effectively transfer part or all of an existing trade, which is presently being undertaken by conventional means, into an offshore e-business. Start-ups, where there is no existing trade, are possible, but require a strong, unique idea, and sufficient funds to set up and run the business until the level of trade can make the company self-sufficient.
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