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Today there is a wide choice of jurisdictions available for incorporation of a non-resident company. However, it should be noted that every jurisdiction has its individual conditions and rules as regards the taxation status of companies, incorporated in that country. Some countries automatically subject any company incorporated there to tax, other countries consider a company incorporated there as subject to tax only if certain conditions are satisfied, yet others do not consider certain types of company to be liable for tax at all.
The issue of taxation status is a key problem for an entrepreneur. In many cases, if he or she intends to open a representative office of a foreign company in the relevant country or simply open a bank account, some countries require a certificate stating that the said company is (or, on the contrary, is not) liable for tax in the country of its incorporation. For this reason, the company may need a certificate bearing its tax identification (reference) number or some other document confirming its taxation status. The following options are available in such cases:
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| 1) | In some countries, for example in Great Britain, Ireland, etc, any company registered there automatically becomes liable for tax and therefore has a tax reference number. The certificate bearing this reference number may be ordered and received in due time. |
| 2) | In the USA, a US company's registration in the records of the Internal Revenue Service (IRS) relies on its completing and submitting the standard SS-4 form. |
| 3) | In classical tax-exempt jurisdictions (Panama, St. Kitts & Nevis, BVI etc.) International Business Companies registered there do not usually have a tax reference number, and are unable to obtain one. In those jurisdictions, instead of a tax reference number, it is possible to receive an official notice from the authorised institution of the relevant jurisdiction (for example - the Ministry of Tax & Finance, etc.) by special order, stating that the said company is not liable for tax in the relevant jurisdiction. |
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