Offshore World's Blog By FBSB

Looking for a tax haven out of France before the presidential elections is the new escape for more and more French. This solution is expanding, for it allows you to face the new regulations aiming at increasing the tax scheme on the highest income. This drastic policy is urging French people to choose expatriation rather than the loss of their assets.

New disturbing regulations

French Legislation projects are increasingly seen as warning signals for those who fear to be deprived of their capital. Reducing the deficit implies new measures about taxable income, in other words those who can pay the bill. Right as well as left political agendas do not bode encouraging perspectives for after the election. Besides the increase of the tax burden, new regulations will be planned such as the taxation on capital gains and financial transactions.

A unanimous decision

Tax haven is not an easy decision for these expatriates who leave behind them their family and their social life. To face up geographical distance, they usually prefer to live in a neighbouring French-speaking country such as Belgium or Switzerland. However Switzerland is a favourable jurisdiction for them. Indeed, on top of the quality of life, this is a State which pursues a lower tax scheme than the French one.
The inheritance tax can vary from 6 to 0 % depending on cantons. Switzerland is a safe place for foreign investors. Other factors confirm it. Helvetian currency keeps a real value within the foreign exchange market which gives it political and monetary stability. Building on its tax scheme, Switzerland hosts about 50% of French expatriates among its biggest fortunes.

As in each year, PriceWaterHouse and the World Bank prepared their annual report about applicable taxes for companies per country. It came as no surprise to hear that France has been classified 164th out of 183! A most disappointing ranking that invites questioning about the relevance of the current fiscal policy. Calling into question a tax regime exposed to the deepest criticisms.

France put on the substitutes’ bench

The announcement is irrevocable. France takes the 164th place on this list and positions itself again among the countries with the highest taxation. For a very good reason, the tax rate on the French companies amounts to 65.7 %. A suggestive and disproportionate figure especially when it is confronted with its nearby jurisdictions such as Qatar, United Arab Emirates or Luxembourg (20.8 %) applying a low jurisdiction. Other countries pursue the same dynamics as Switzerland being always in the lead by applying a 30.1 % rate positioning on the 43rd place of the classification. The lowest jurisdictions are mainly States which have known political issues such as Timor or Namibia where the taxation is almost non-existent.

The economic crisis significantly influenced the current fiscal policies. To restore a new advantage to companies and make the managerial economics more dynamic, some countries chose to lower taxation.

A fiscal discrimination not supported

The year 2010 is marked by new measures of the European Commission and the Court of justice regarding France. Accused of fiscal discrimination within the European Union, France does not respect the principle of free circulation of capital. Indeed, no tax exemption is given to the French companies putting back their dividend in pension funds and in foreign investments while this exemption is applicable for all the dividends put back in France.

A disparity which amounts to 15 % and which penalizes the French companies having the ambition to develop their international business.

France hardens its tax policy

The credit tax-research increased its tax base in its new 2011 project and impacts on the Research and Development department of companies. That which previously increased the companies’ development capabilities becomes the new headache of firms. Indeed, the 5 % decrease of tax systematically allocated to companies for Research is henceforth outdated. The restrictions also apply to new companies committed in the Research which have taxation increased by 10 % for the first year and by 15 % for the second. These new measures should save the State 100 million euros.

The current French fiscal policy does not make it easier for the companies’ development.

Nevertheless, alternative solutions can be geared towards the success of your professional project: whether you want to develop your international company or need to open a bank account in a low tax jurisdiction, FBS Banking ™ and its partners will help you in all your approaches.

Verdict issued by December 2011. Within the framework of this turnaround plan, 2350 jobs have been cut by Crédit Agricole to reduce its corporate and investment bank as well as its consumer credit business. Drastic measures to strengthen its medium-term goals.

The green bank confirmed the 2350 jobs cut in the world which included 850 in France. These jobs concern mainly corporate and investment bank businesses. In the consumer credit (the CACF) section 300 positions in France and in other countries will be also cut. Some measures which should enable banks a debt pay down of about 50 billion euro by the end of 2012.
The restructuring plan is also based on the reduction of its corporate and investment bank. To achieve this goal, the three-coloured bank will withdraw from 21 countries but will remain within 32 countries. A new restructuring plan implemented in answer to the European banking authorities asking banks for 9 % ratio before June, 2012. These last ones will also have to state an adjustment plan on December 15th, 2012. Moreover, Crédit Agricole announced its net income should slash by 500 million euro in the 4th quarter.
These medium to long term targets should allow the bank to reduce its 60 billion euro balance sheet in 2013 by following a conservation policy of its net banking.
Are you interested in opening a bank account in France for a non-resident? The FBS Banking ™ team will ease your administrative duties and you will benefit from its partners’ network.

After a tempestuous year, the Swiss National Bank is reconciled with figures and announces a 13 billion Swiss franc profit for the account year 2011. Encouraging perspectives which stimulate the local economy.
Explanatory factors

The National Swiss Bank owes these renewed activities to the quotation of Gold which has a strong growth in 2011. The ounce of gold achieves up to 1354€ in September, an overestimation which gives a definite advantage to the NSB which records a 5 billion Swiss francs capital gain on its capital in ingot. This surplus can also be explained by the differences of exchange rate between the currencies, giving to the Helvetian currency, an estimated asset about 8 billion Swiss francs in 2011. Governed under the bank secrecy, the bank also takes advantage of its Swiss legitimacy.
A fair redistribution
The profits of the NBS will be used to replenish the monetary supplies up to 3.2 billion Swiss francs and about 5 billion Swiss francs should fill the debit balance of the account year of 2010.
One billion Swiss francs will be allocated to the Confederacy and to the Cantons in this following proportion: two-thirds for cantons and a third to the Confederacy. An amount much lower compared to the one awarded in the previous year’s which reached the 2.5 billion Swiss francs. It gives the first positive signs of a growing economy.
If you are too interested by the Swiss jurisdiction or opening a bank account, FBS Banking ™ offers you custom-made banking and fiduciary services, to help you achieve your business projects.

On April 20th, 2011, Hong Kong regained prestige by signing an agreement with the People’s Republic of China and France. New regulations soften the fiscal and legal barriers between states. It introduces a common bilateral agreement that will remove surcharges on entrepreneurs and the discovery of this market has resulted in rapid growth.

A discharging tax scheme

An investigation of the UNCTAD World Investment Report 2010 positions Hong Kong as 4th in the world ranking among areas conducting foreign direct investments. It is hardly surprising when we notice that the Hong Kong tax scheme is very hospitable. Indeed, the 17.5 % tax rate is applicable on only the base of the projects. In other words, taxes on dividends and on surplus are subjected to no tax. This fiscal policy reinforces a stable economy and a very effective banking system. This emerging market provides a new lease on life to companies willing to develop their international business.

A strategic position

Belonging to the special administrative regions of the People’s Republic of China, Hong Kong holds a strategic position with direct access to the Chinese market. This opportunity positions investors to set up in an expanding market. Hong Kong also owes its success to the performance of its infrastructure and to its legal safety. These assets contribute to its leading position for exports and production capacities.

A successful program

We have to admit that Hong Kong has the advantage of a politically stable market where the light legislation allows the free flow of information. Investors have understood this and can settle down freely and establish their brand without being a Hong Kong citizen. Moreover a program has been set up to ease economic integration in the same way the program for capital investment does. Recently established, it makes it easier to establish the right of the residence for foreign taxpayers and allows them to freely invest their assets without setting up a new company.
These advantageous tax measures invite investors to invest more and more offshore. Aware of these opportunities, FBS Banking ™ offers its banking and fiduciary services also in Hong Kong. For more information, consult our services in Hong Kong.

At FBS Banking, confidentiality and security of our customers is our daily concern. That is why we are always looking for new ways to maintain your anonymity.

Today, FBS Banking is proud to announce that our partners in Switzerland and Liechtenstein are able to offer you a 100% secure anonymous card, the “Travel Cash Card”, which will allow you to withdraw money and pay retailers all around the world.

Available in Euros, Dollars or Swiss Francs, this card guarantees anonymity: You first charge your card online, and then, when using it, no link to your bank account can be made whatsoever. It is therefore impossible to determine the source of funds.

The Travel Card now exists for your internet purchases. The internet cash works exactly as the Travel Cash does.

Feel free to contact our consultants at 00371-67-325-121 for more information!

Always looking for new opportunities, FBS Banking is proud to announce the arrival of two new partners: The first in Tanzania, the second in Liechtenstein.

As usual, we focus on reliable partners, with strong international experience and a solid reputation, but also offering a wide range of opportunities for their customers. These two new banks are no exception, and we are confident that their services will suit the needs of our customers!

Feel free to contact us for more information!

Since the 1st of July 2011, and following the European Union Savings Tax Directive, the Belgian tax administration has accepted to establish an automatic exchange of fiscal and bank-related information in Europe. This directly targets the accounts of all the leading bank of the country. That is to say 250.000 European citizens, including 100.000 French citizens.

Do not panic! Boosted by its privileged network, FBS Banking provides you with a simple, safe and confidential account opening in numerous jurisdictions.

Do not hesitate to contact our team for supplementary information.