Quote:
marketsmart:
There are only 1 or 2 places in the world that are not part of the World Tax Treaty. And that will probably change too. "Offshore" raises a lot of flags, especially with the Patriot Act. If you are a US Citizen, you are still liable to be tried under breaking US law. My advice would be to stay onshore, so if the shit ever hits the fan, you wont be charged with Tax Evasion and/or money laundering...
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What's the deal with non-working quotes here?
Very good point ms - OS needs to be treated legitmately, otherwise it can cause serious problems. For most people - this is fine and the most clean-cut method is being actually resident OS, - then there are no problems or obstacles and nothing needs to be hidden. There are no obligations for any reporting to agencies in their "home country" and all revenue is, normally, tax free.
For US folks it gets more complex. Unlike other nationalities where there is no reporting requirements for eg taxation etc back to the "home country", the US imposes worldwide taxation on US citizens, irrespective where they actually live (in or outside the US). There is still the need to file IRS data etc. This defeats the whole purpose of offshore and takes away the principles of privacy to a degree.
On the plus side, there are a fair number of accountants offshore who handle US clients (they are mainly US accountants and familiar with US laws and obligations). There is also a "bonus" tax allowance from the IRS in the region of $70-80K'ish/year. So.. everyone seems to earn $69,995
- tho seriously - it does need legal attention to ensure everything is covered.