IBC for Asset Protection
An Italian structural engineer has accumulated significant
wealth over the last 20 years in a successful career. He is
concerned that, in the unlikely event that he is sued by his
clients for malpractice his personal assets will be seized.
A Seychelles/BVI/Belize IBC is formed to hold all the assets a
structural engineer based in Italy. Should the engineer be sued
for malpractice or go bankrupt these assets are locked in the
IBC Company and cannot be seized by creditors.
IBC for Personal Service
Mrs. Padayachy is likely to spend more than eight months in each
country in which he undertakes a project and is therefore likely
to become tax resident in that country and subject to that
country's full rate of tax on the income generated from the
She is normally resident in a low tax country and is therefore
unwilling to pay higher levels of tax. She also finds it
difficult to be competitive when she quotes for a project unless
she is tax efficient in the way that she works.
She should set up a personal service company. This company,
rather than her in a personal capacity, should enter into
contracts with clients. If her company is located in a
jurisdiction that has a tax treaty with the country in which she
carries out the work, the company should be able to be paid
gross of tax on the assumption that it will be taxed in the
country where her company is located. Her company can then pay
her a moderate salary, leaving the balance of the contract value
to be taxed at the company's low rate.