Russians its offshore business in the UK seems to be a conceivable solution of a first draft. This is the case for certain types of business entity to such companies or LTD “Limited society”. This category can benefit from including a number of advantages, not only in the area of ​​taxation, but also in terms of approach to its creation and practice of its business. But other forms of institution, they are particularly subject to other special rules according to their classification.

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One wonders what it is foreign banks setting up shop in length in London. To elucidate this, we will try to talk through this article the necessary details concerning the situation of these two types of the aforementioned business entity towards the current tax status in the country.

Corporate Taxation in London

It can be said that the company Ltd is the main beneficiary of the system of tax exemption has always opted for London. Choose this form of business provides various tax benefits as follows: For VAT, the tax rate is lower by about 2 points from that applied in France, you will have a total exemption from VAT if your Turnover ‘Business is below 90,000 euros. Of tax on profits of companies Ltd, the tax rate is 19% up to 130,000 Euros, 30% of 130,000 Euros to 2.1 million and 32.75% after. (A these figures are approximate, they depend on the exchange rate between the Pound Sterling and the Euro). Ltd. The company also pays payroll taxes on wages well below those of France with about 20% of employer contributions and employee instead of 72%.

All these advantages motivate many business leaders of the European Community, often encouraged by their shareholders, to look to London to domicile their offshore business unit. This choice is made possible by the fact that European Community law does not contradict, and even authenticates, the creative process of a company called “active” whose headquarters will be located in another member country of the European Union, outside the home country of the shareholders. This provision is stipulated by Article 54 of the Treaty of Rome. Moreover, Britain has in addition a flexible administrative approach consists of the possibility of creating a corporation without capital contribution (1.5 euro symbol) and a minimization of shareholder engagement.

Tax credit of London

If the system of tax exemption benefits of London back to Limited Liability Companies, it’s not really the case for banking entities, despite their abundance in this country. Some leaders of institutions Offshore Finance argue that the rationale for their establishment in the territory of London is rather easy side of the sequence of transactions that hope to benefit from some tax planning. Nevertheless, it is confirmed that the banks that settled in London pay much less tax than those who hold office in other European countries. The rate of tax burden, including that of their employees, for example reduced by 62% compared with that of France. Where the amount of European and American financial investors to direct their banking in Britain rather than elsewhere. It is estimated that 40% of investments in offshore finance in the world are concentrated in the Thames!