Creating Real Business Substance
- Facility Management
Business substance defines the level economic reality of a company that allows the benefits from tax laws and double taxation treaties.
Substance is essential to avoid high tax burdens and to prevent disputes with tax authorities and banks.
Substance requirements are increasing and banks are currently evaluating their clients in line with new laws and regulations.
Nominee Director and Shareholder with Virtual Address
- not FATCA compatible
- will get challenged by financial institutions
- regular challenged transactions by sending, intermeadiate or receiving financial institutions
Part time employed "Direcor" with nominal office rental
- allows account opening and limited transactions
- does not create any value added
- no sufficient defence against tax authorities from high tax jurisdictions
Proportial Business Substance
- allows account opening and unchallenged transactions
- fully integrated into the corporate value chain
- BEPS, FATCA and CRS compatible
Business transactions need commercial substance to allow tax recognition and bank approval.
Missing substance can lead to the rejection of banks to execute related financial transactions, blocked transactions by intermeadiate banks or even blocked funds at the receiving side.