Yes. You can move your company to a lower tax country
to reduce your overall tax burden. However, if you have a substantial business
presence in the country you are leaving then the benefits may be minimal.
Some countries impose an exit tax just because they can. I guess they are trying
to make it more expensive to leave and you might reconsider. We like to refer to
it as the sour grapes tax. Tax laws change sometimes to try to kill the benefits
of moving offshore but people and businesses adjust and will continue to
The fight between the high tax and low tax nations has been continuous. Some
countries claim that others are helping their citizens avoid paying tax!
Legally? or Illegally? We don't think it matters. They are just mad because they
are losing tax dollars that could be spent on something. Think about it - you
would be mad too if you were losing your income to a person or company in a
foreign country. If it was me, I would be fully supporting the sour grapes tax
to make them suffer for taking away my income.
So as we preach, go offshore from the start. Don't get hit with sour
If you have any questions about the above, send us an email.