Due to the unstable economic situation in the country, Ukrainian entrepreneurs are increasingly resorting to such financial instruments as offshore companies. Foreign banks, for the most part, are willing to cooperate with non-residents, and business owners get the opportunity to save on taxes.
Despite deoffshorization, foreign banks offer clients many profitable financial products that allow them to pay salaries, travel allowances, and all kinds of bonuses. In the modern world, the turnover of cash is gradually declining. They are being replaced by electronic payments and cryptocurrencies. In the case of the payment of salaries, the – a rather risky option, but payment cards – stable and reliable way to pay employees.
How to get a salary card offshore
To get a card you need:
- open a corporate account in a foreign bank;
- tell the bank officer about your plans;
- conclude a cooperation agreement;
- order the issue of cards with the name of your company or offshore bank.
In addition to salary cards, there are also prepaid cards issued in the name of a financial institution. They can be ordered for payments to both partners for services and employees. These cards earn fairly quickly, are accepted worldwide, and can be anonymous. At the same time, the employer is charged for issuing cards, a monthly commission for transferring funds. However, these costs are offset by a reduction in income tax.
The benefits of offshore banking
- Reduced tax burden, the ability to pay employees higher salaries.
- Reducing the tax rate with the right choice of offshore jurisdiction for business registration.
- High level of service, banking transactions are carried out within an hour.
In addition, offshore companies and services in foreign financial institutions are used to keep business ownership confidential and increase confidence from international partners.
How wages are calculated in offshore jurisdictions
Salary is calculated according to the general rules – hourly, for the number of shifts worked, per month. Deductions (tax on personal income, contributions to funds, and others) are made and paid in accordance with the laws of the country of jurisdiction. The salary, net of taxes, is transferred to the employee on the salary card.
An accountant is responsible for calculating payments in any company. Our employees of "Key Solutions - payroll for offshore companies" will assist in the calculation of payroll for the staff of an offshore organization, taking into account the specifics of the legislation of the country in which it is registered.
In addition, we will help you with choosing a bank that serves a non-resident company and issuing payroll cards on the most favorable terms. Our specialists are well aware of the tax legislation of foreign countries, as well as international accounting standards.
To order a service, please contact our staff by phone or fill out an electronic application on the website.