When we heard of banking offshore many of us sounds that it is irrelevant and voidable of using such bank account. But the real situation is different only people with merchant banking and international businesses man known the real picture of banking offshore. What people think about banking offshore is not all true here are some myths about offshore Banking that will change your personal and professional overview.
Offshore Bank Account are Illegal? No banking offshore is fully legal, but in some countries, you need to show the feasible offshore assets report to your home authorities. For eg, if you are Citizen of U.S and have a bank account in Canada you must declare that account. The place and country matter in holding an offshore account. The tax issue occurs because most countries taxed interest income in the country of residence, while this income is taxable in an offshore jurisdiction.
Regulation and Banking Restriction is Poor since it not implies too many restrictions on Account Holders, given full freedom of confidentiality. Some small jurisdiction is subject to particular laws and regulation on behalf of FATF and other authorities. This may take your business in great loss.
Offshore Bank Account is Fully Anonyms whenever you open an offshore bank account your Name and bank account detail are not anonymous to the bank. Only your bank knows each and every detail.
The fund is not safe in Offshore bank which has global visibility It can explore your information and account detail to the parent bank in your home country. But a subsidiary offshore bank is a separate legal entity subject to the different law and jurisdiction. Keeping full confidentially of depositors and clients and not passing any information to the parent banks. In some countries, it is punishable to disclose the information by prison terms.
Fully Tax-Free Not Fully tax-free, but give some tax benefits to the merchants. In most cases, its free of local taxation of the banks jurisdiction.
Physical Appearance is Compulsory for Opening Such Account No Clients doest not have to appear physical in order to open an account. These banks have developed a procedure for opening remote and mobile bank account. Clients need to provide certain extra documents t provide proof of identity.
Needs Heavy Deposits Not all banks require a heavy deposit, mainly it requires deposits starting with US$100,000 or equivalent. But a significant number of smaller banks are still interested in a regular middle-class customer and their initial deposit requirements may start with US$1,000 or less.