On April 14, 2020, the first online discussion of Intax Insider (from the creators of the Intax Group) “CoronaCrisis2020: What will be the tax planning in the world after the apocalypse?”took place. With the participation of international tax consultants: Alexander Zakharov (Moscow), Dmitry Zapol (London) and Vadim Neumann (Zurich).
Vadim Neumann underlined less rigorous tax conditions according to residents of Switzerland, Luxembourg, the Netherlands, Malta and Cyprus: tax deadlines are allowed to “shift”, collectors are prohibited, direct loans are issued for small and medium-sized businesses, the procedure for which is simplified as much as possible. Switzerland does offer a unique business support program, registered before March 1, 2020. Provided you have a Swiss bank account, you can get a loan of up to 10% of a previous year’s turnover. And most importantly,amid a coronavirus,a stable and rather bureaucratic Switzerland simplified the procedure for obtaining a loan. Today, it is enough to provide a one-page document and in two days the money will be transferred to your account! But there, alas, freedom ends: Swiss banks still prefer to see a client rather than cut a deal online.
The UK also provides substantial support for small, medium and even large businesses, and land tax incentives. However, Dmitry Zapol predicts income and other taxes increase. However, The Foggy Albion is famous for its flexible tax system and is likely to continue to be a pleasant place for registering a business. Dmitry Zapol compared tax planning in Britain with walking a tightrope: you are surrounded by strict compliance and severe fines, but with careful compliance with the legislation, you can completely get rid of the tax burden.
The situation might be different in Russia, where, due to the widespread practice of doing business “in the gray”,companies will have to change in order to pass compliance and justify their income. By the way, Dmitry Zapol assumes holding and trading organizations to move from the CIS to other countries’ jurisdiction which provide support to their residents.In this case, Britain again stands out for being attractive for businesses with its understandable legal system, minimal cost of creating and maintaining legal entities, benefits and the ability to avoid double taxation. The latter advantage is especially important: experts advise to abandon the idea of transferring business to offshore for this reason and choose a country that supports the agreement on the avoidance of double taxation on income. Besides, offshore companies may even cease to be offshore due to the exchange of banking information. Therefore, today the prospects of companies registered in offshore are not very bright.
Overall, the participants of the conversations are optimistic. The Wealth industry has become online and continues to evolve adjusting to the new rules of the game and client demands.
With this web meeting Intax Insider begins a series of discussions with leading experts in the field of wealth management and tax planning. The broadcast was watched by 667 people from more than 15 countries.Next week we will hold two new online meetings with professional speakers who will share insiders on the most relevant topics. Subscribe to our newsletter not to miss unique information from Intax Insider experts.