Hi All
Trying to structure my business in a tax efficient manner here and could use some help.
I have an Irish company providing services to the public. I have a non-EU offshore company of which I am the sole director. I live in the same offshore jurisdiction as this company.
I'll be extracting the profit from the Irish company straight into the offshore company and I want to know how best to do this.
Option A -
I charge the Irish company for management service which I am providing to it. I'll be making all the management decisions from offshore so it is completely legitimate.
Does this raise a VAT issue? I think the Irish company has to charge VAT to the offshore company on a reverse charge basis but for the life of me I can't figure out what this means practically speaking? Can anyone dumb it down?
Option B -
I can personally lease a residential property (which is the subject of the business) to the offshore company who can then sub-lease it to the Irish company and charge for that which will work to extract the profits.
Any issues here? Is there a VAT liability or is letting a property VAT exempt?
I'm comfortable with option A (bar from not understanding the VAT part yet) but Option B I have only begun to consider so I would be grateful if anyone could point out any issues they see.
Thanks
Trying to structure my business in a tax efficient manner here and could use some help.
I have an Irish company providing services to the public. I have a non-EU offshore company of which I am the sole director. I live in the same offshore jurisdiction as this company.
I'll be extracting the profit from the Irish company straight into the offshore company and I want to know how best to do this.
Option A -
I charge the Irish company for management service which I am providing to it. I'll be making all the management decisions from offshore so it is completely legitimate.
Does this raise a VAT issue? I think the Irish company has to charge VAT to the offshore company on a reverse charge basis but for the life of me I can't figure out what this means practically speaking? Can anyone dumb it down?
Option B -
I can personally lease a residential property (which is the subject of the business) to the offshore company who can then sub-lease it to the Irish company and charge for that which will work to extract the profits.
Any issues here? Is there a VAT liability or is letting a property VAT exempt?
I'm comfortable with option A (bar from not understanding the VAT part yet) but Option B I have only begun to consider so I would be grateful if anyone could point out any issues they see.
Thanks