Published 10 February 2017. Some rules have changed since; ask us for the current position.
What is driving this? International business "operations" keep growing in scale. That is why international bodies, such as anti-money laundering (AML) organisations, are raising their transparency requirements for international business. The era of classic offshore jurisdictions is passing.
Companies now have to follow the current OECD standards and adjust the way they keep their accounts. To meet the current requirements, tax authorities are doing everything they can to avoid putting the whole offshore industry at risk, and they are amending their bookkeeping rules.
It follows that, in the accounting and tax records of offshore companies, the key advantage is how quickly financial statements on the receipt and use of income can be provided to the tax authorities. What are the benefits? Access to offshore tax incentives and to double tax treaties.
For example, a company registered on sunny St Kitts must keep records that explain its transactions and describe its financial position. This makes it possible to produce full financial statements. The records must be kept for 5 years at the office of the registered agent or elsewhere, but always at a specified address outside the offshore jurisdiction.
We recommend entrusting your record-keeping or an audit of financial statements to our company. Why? Find out on the service page.
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