What are the benefits of offshore trading?

1. Reduce tax costs The main difference between offshore companies and general onshore limited companies is taxation. Different from the commonly used practice of levying taxes based on turnover or profits, all offshore legal areas have stipulated to varying degrees that the operating income and profits obtained by offshore companies are exempt from local taxes or paid at a very low tax rate. The governments of offshore legal areas only levy annual management fees from offshore companies and no other taxes. Some are even exempt from inheritance tax. Overseas companies can be used to properly arrange taxes and avoid taxes reasonably and legally. All overseas companies have reduction or tax exemption policies, which can save you considerable tax burden every year. If a double tax treaty is signed between the country where the company is registered and the country of origin of the original company, there is an opportunity to defer or reduce the prepayment tax on overseas profits. The following are international business companies registered in Hong Kong, BVI, and Bermuda. For companies engaged in international trade, offshore companies can be used to conduct international trade operations, that is, offshore companies receive orders from suppliers and then deliver the goods directly to customers. The offshore company will send the bill directly to the customer. Profits from buying/selling are not taxable in offshore companies. For example, a Chinese company sets up a trading company in the BVI, then sells the products to the subsidiary at a lower price, and then the subsidiary resells the products to buyers in another country at normal prices. In fact, the goods are shipped directly from the Chinese company to buyer. Or on the contrary, when a Chinese company needs to purchase goods from another country, the subsidiary can purchase them from another country at normal prices and sell them to the Chinese company at a higher price, while the goods are shipped directly from the seller to China. company. Here, the subsidiary conducts a purely fictitious business, but in this way, through repeated transactions, it transfers the income originally derived from China to tax havens, achieving the purpose of reasonable tax avoidance. 2. Reduce international settlement costs. For companies engaged in international trade, use offshore companies to conduct international trade operations to avoid foreign exchange settlement losses in international trade settlement. Reduce exchange risks. For example, if a customer does both import and export, then the foreign currency used to pay for import should be paid in foreign currency surplus from export receipts as much as possible to reduce the number of exchanges. If the funds deposited in the offshore account are relatively large, the bank can give a certain amount of deposit interest, which is generally much higher than the quoted interest rate. In addition, for some businesses that charge per transaction, try to consolidate payments to reduce the number of transactions. Interest tax on offshore account deposits is exempted or only subject to a lower interest tax. For example, Xiamen exempts offshore account deposits from interest tax, Fuzhou only levies an interest tax of 10% on offshore account deposits, and currently mainland China levies an interest tax of 20% on interest on bank deposits. 1) If your account is opened in Hong Kong, your money is free and can be withdrawn because there are no exchange controls in Hong Kong. 2) If your account is an offshore account opened in China, it is equivalent to a bank account opened overseas. The funds in the account can be freely remitted to domestic and foreign companies or individuals without submitting any government approval, customs declaration, or verification. Sales orders, invoices, contracts, etc., are equivalent to personal wallets, with free entry and exit of foreign exchange, and any payment, including the collection of personal foreign exchange commissions, because according to the country's "Offshore Bank Account Management Measures", such accounts are regarded as overseas accounts. It is not subject to national foreign exchange control and is not subject to forced foreign exchange settlement. It is very convenient for you to conduct international trade settlements such as transferring LC and receiving TT. 3. Reduce financial costs. Many offshore legal areas stipulate to varying degrees that the operating income and profits obtained by offshore companies are exempt from local profits tax. The law does not require offshore companies to submit audited company accounts to the local tax bureau. , as long as the data is retained to reflect economic conditions. These loose legal regulations save companies the burden of accounting and auditing and financial costs. 4. Reduce shipping operating costs. For companies engaged in international trade, offshore companies are used for international trade operations. The goods are shipped directly from the Chinese company to the location designated by the buyer, unlike normal trade operations where the goods need to be shipped to the buyer’s location. Then it is re-exported to the final buyer, which reduces the cost of shipping operations.

5. Reduce customs costs. By using offshore trade operations, the goods are shipped directly from the country of production and export to the destination specified by the buyer. There is no need to go through third-party customs declaration, so only one export and one import declaration procedures are required, which obviously eliminates the need for customs declaration. By eliminating the intermediate link of customs declaration work, customs costs will naturally be reduced. 6. Reduce the cost of import and export business operations. Using offshore trade operation methods, you only need to prepare a set of export documents according to the contract with the offshore company, and then hand them over to your offshore company. The offshore company will follow the final purchase agreement with you. The home contract is completed by simply going through a document exchange procedure and handing the documents to your final buyer. These tasks can be completed in your current office. Compared with normal trade operations, by eliminating the intermediate links, your costs will of course be reduced. 7. Reduce document costs. Use the offshore trade operation method and only perform a simple order exchange procedure in your current OFFICE. The entire transit trade process is completed, eliminating the need to do the collection and delivery of other documents and documents. This reduces the cost of trade documents. 8. Avoid country-specific trade barriers. After joining the WTO, there are more and more international trade frictions and barriers. For example, if a company exports products to the United States, it needs to apply for quotas and a series of related procedures, which will cost one to two times more. . And if the company owns an overseas offshore company, and the company exports products to the offshore company, and then the offshore company exports to developed countries such as the United States, it can bypass tariff barriers and obtain tax-free treatment, and can also successfully bypass exports. Quota limits. 9. Resolved the risks in international settlement in certain countries