With the right paperwork and initial outlay, it is possible for a foreign citizen to open a bank account in Denmark. This opportunity for international accounts and investments offers several advantages based on economic regulations and tax structures. Interest rates, tax laws, and fees vary depending on the specific country in which you are investing; careful research and strategic financial moves could result in significant portfolio growth.

A value-added tax (also known as VAT) is levied in some countries from selling/purchasing certain goods and services. Generally, it can be defined as a consumption tax estimated and charged based on the value being added. Usually, VAT is considered destination-based, as application of VAT depends on the jurisdiction of the seller and purchaser. It must be noted that VAT provides almost 20% of total tax amount charged worldwide.

Whenever you choose to do business in the EU, you are surely to face the question of VAT number registration. VAT questions are complex. Nevertheless, all EU Member States follow EU VAT Directive, thus each EU country worked out its own legislation towards VAT requirements and reports.

As soon as the company is registered for VAT number, it must regularly file its VAT report, which will contain information about the incoming and outgoing invoices, whether those were issued / received by other EU counterparties or non-EU partners or not. Most importantly, all deals must be declared in the VAT report, including invoices where 0% VAT was applied.

VAT returns
A VAT return – is a balance document, which indicates the amount of VAT due on sales (also known as the output VAT) and the amount of VAT that can be returned on purchases (also known as the input VAT), hence providing detailed information about how much VAT is paid and how much can be reclaimed from the local tax administration.

Periods of VAT returns
The periods of VAT report mostly depend on the turnover of the company, number of deals within the EU and on the legislation of the specific EU Member State. Most common periods for VAT returns are:

On monthly basis: 1) for EU companies with large turnover and large amount of transactions; or 2) typical for such EU States as Bulgaria, Poland, Czech Republic;
On quarterly basis: typical for such countries as Cyprus, Austria, the Netherlands;
On semi-annual basis: this period term is used rarely for companies with limited activity or 2) companies which are newly registered for VAT (for example, Cyprus);
On annual basis: 1) in some EU States Annual VAT Return is used as additional report uniting all monthly or quarterly VAT declarations submitted throughout the year (for example, in Italy); or 2) this period can be used for non-active companies, which have VAT numbers.
We must note that more and more EU Member States move to monthly VAT returns, due to the toughened compliance and increased amount of intra-community deals, and especially, increased amount of fraud deals with 0% VAT rate application.

Information indicated in the VAT return
Each Member State draws its own rules for VAT returns, but there are some common guidelines for all VAT declarations:

Totals of all incoming and outgoing invoices (dis-regardless, made with EU or non-EU companies);
Totals of VAT for all incoming and outgoing invoices (including all types of VAT rates: standard VAT rate and reduced VAT rate);
VAT amount due (total of VAT payable to the government);
Total of intra-trading supplies with 0% VAT rate (including names of countries, where the goods come from and where they are delivered to).
Besides periodic VAT declaration VAT scope of work includes:

EC Sales Lists (ECSL) and Intrastat forms;
VAT Refunds;
EORI number requirements.
Professional support is crucial when dealing with VAT matters, especially when it comes to VAT refunds and VAT returns. Do not hesitate and consult with Confidus Solutions regarding correct use of 0% VAT rate for intra-trading and triangulation schemes.

Today's international business leaders register IBCs primarily because this legal structure provides a way to run a business on a global scale while legally avoiding property taxes and excessive paperwork – in addition to having offshore bank accounts or buying non-reportable assets like offshore gold, etc Real estate abroad or productive, high-yield farmland in politically and economically less influential countries using cryptocurrencies. Some believe that low tax rates are the future.

At the same time, the jurisdictions that offer such opportunities to business owners are often referred to as tax havens or offshores. Offshore jurisdictions are often blacklisted as IBC beneficiaries are typically prohibited from conducting local business - meaning they are legally unable to conduct business in the country where their company is based to do. IBC owners can use transfer pricing to distribute intellectual property and sales for very low tax rates. However, this may have certain consequences as their home country will likely require them to report their involvement in offshore business activities. Offshore jurisdictions may aim to generate profits by allowing business owners to hide their names while supporting illegal and harmful business activities, including war, drug trafficking and other harmful activities.

Depending on the particular jurisdiction, offshore company owners may take the opportunity to comply with laws that are more customer- or company-friendly than creditor-friendly. Some countries offer protection from all claims unless the transfer is deemed fraudulent. There are different types of offshore companies, so-called letterbox companies and shelf companies, which have been set up specifically to carry out illegal activities. The former exist only on paper, produce nothing, and encourage tax avoidance while disguising the identities of scammers. The latter are full-fledged entities with no activity, created to bypass the registration process while still making quick trade deals with established companies.

Thirty countries are currently on the EU offshore blacklist drawn up by the European Commission. It includes countries such as Anguilla, Andorra, Antigua and Barbuda, the Bahamas, Belize, Barbados, Bermuda, Brunei, the British Virgin Islands, the Cook Islands, the Cayman Islands, Grenada, Guernsey, Hong Kong, Liechtenstein, Liberia, the Maldives, the Marshall Islands, Mauritius , Montserrat, Monaco, Nauru, Niue, Panama, Saint Vincent and the Grenadines, Saint Kitts and Nevis, Seychelles, US Virgin Islands, Turks and Caicos Islands and Vanuatu.

The consequences of a company being located or making and receiving payments in offshore jurisdictions that are blacklisted can be quite severe as those involved may unknowingly engage in hostile and questionable activities such as terrorism, warfare and the search for weapons of mass destruction ( nuclear programs) trigger or support. and enter into partnerships with socially and politically dangerous terrorist organizations, human traffickers and drug cartels. In addition to legal charges, sanctions and a criminal record, involvement in such activities may lead to increased corruption after due diligence has been carried out.

There are also certain grey-listed countries that are considered to be insufficiently cooperative, as they only partially meet and follow the European Union (EU) and Organization for Economic Co-operation and Development (OECD) regulations and standards on information transparency that are aimed at to harmonize corporate tax laws and align tax systems across EU Member States.

Such jurisdictions support greater transparency by increasing social security and committing to the internationally agreed tax standard, but have not substantially implemented that standard. They are seen as alternatives to blacklisted offshore companies that have not committed to internationally agreed tax standards, nor have taken steps to work with the OECD.

Nominee services are typically provided by an intermediary to disguise the beneficial owner's business. Nominee services refer to nominee shareholder and nominee director. As a rule, the nominee services should also be a P.O. Box service (office address for correspondence purposes). Nominee services are suitable for large corporate structures for tax planning purposes and often contain international elements. For example, the final beneficiary is based in another country and not within the company itself.
Nominee shareholder services are typically provided on the basis of a declaration of trust, with the nominee declaring that they hold shares on behalf of anyone else and are not authorized to make decisions in the company, vote at a shareholders' meeting, or receive dividends, it unless the customer has expressly instructed it to do so. The nominee has no right to sell shares unless the customer requests it. However, the client and the nominee can agree on certain tasks that the nominee should perform. Such tasks are often entrusted to lawyers and lawyers who are active in this field and who can protect the interests of the client.
Nominee Director, also known as the “Shadow Director”, who normally only appears for official records, while the company is practically managed by the customer by proxy. Based on the authorization, the customer can open a bank account and acquire full management and control of the company.

Benefits of nominee services
The benefits of using nominee services can be seen in cases where an entrepreneur wants to maintain his privacy and reduces visibility in official records or does not want his name to be associated with the company in question. In addition, there may be a situation where a person has restrictions in performing the intended activity or when the law requires local management, such as a local secretary in Hong Kong.
When quick action is required to register a business overseas in the event the client cannot travel, it is often more convenient to temporarily appoint a local business manager. When the intent is to open a business in a foreign jurisdiction such as BVI, Belize, Hong Kong, it can be physically complicated to show up in person.
Nominee services usually guarantee confidentiality and anonymity. However, disclosure is sometimes made to a bank or investigative authorities during legal proceedings.
The nominee services are widely used for tax planning and asset protection purposes. If the final beneficiary of the full corporate structure is based in low-tax countries, they should enjoy the benefits of the low-tax system on the dividends received from the profits generated.
Other benefits arise from the country of registration and are often referred to in financial statements and reports. In some tax haven areas there is no need to present the annual financial statements, hence low auditing and bookkeeping requirements which offer certain benefits if the person is willing to increase privacy and confidentiality and hide their assets.

Nominees
The term “nominee” can be used to refer to a nominee director or a nominee shareholder. Confidus Solutions can offer you both services worldwide, depending on your company structure and your personal goals.
Nominee Director
The nominee director is usually a local resident. However, it can also be a person from abroad, as there are no special requirements. The nominated director should be an individual or a private person. In some countries a director is - an institution, so the director can be a collegiate body.
Nominee shareholder
For the purpose of nominee service in certain jurisdictions, the nominee shareholder is usually an individual private individual. The person can be resident or non-resident, depending on the individual case.

The nominees from Confidus Solutions
It is possible to combine nominee services and expand the corporate structure to include two nominees. The nominee director and the nominee shareholder should not necessarily be the same person or in the same jurisdiction. There can be different solutions for tax planning purposes.
Confidus Solutions has partners and agents around the world that enable us to offer nominee services worldwide, depending on the needs and goals of our customers. Our lawyers and tax advisors will advise you in detail on tax planning and offer you a unique corporate structure that meets your needs.

Legal basis for nominees
Nominee services are set up by mutual agreement between the customer and the nominee. The agreement is usually valid for one year and can be extended if the cooperation is successful. The documents confirming the actual status serve as a declaration of trust signed by the nominee shareholder confirming that he / she has no real interest in the company and that all decisions are made by the client, including but not limited to profit sharing and dividend payments, appointment of the company's board of directors, etc. The nominee director should give power of attorney by giving full power of attorney to the actual owner or to any other person at the customer's option. The nominated director doesn't actually run the company.
The contract concluded between the client and the nominee is subject to local civil law. Historically, the nominee concept stems from banking law as a specific service for bank customers. Today, many jurisdictions offer such services as a business, and the provision of such services is a result of common law that combines best practices around the world.

Candidate Liability
The nominee bears full responsibility for his actions and the customer bears him responsibility at all times. The nominee should only act in good faith and with a high degree of loyalty in accordance with the instructions of the client and the order placed. The liability provisions can be regulated by the agreement.
Nominee status, however, does not change legal liability and government agencies hold him responsible for his actions as an officer, including civil, criminal and administrative liability. The nominee is also liable to the client according to the content of the agreement and the order placed.
In low-tax areas, the nominee services are usually well developed and liability is more flexible. However, the nominee cannot act against the will of the customer.