Personal Service Companies

Many individuals engaged in the provision of professional services such as business consultancy, software engineering, computers, design, finance consultancy can achieve considerable tax saving benefits using a Personal service company. The PSC can contract to supply the services of the individual outside the country in which he is normally resident and the fees earned can accumulate offshore, free from taxation in the offshore centre.

Benefits

1. Providing services through a company structure will prove to be a good organisational and marketing tool for two or more persons seeking to provide consultancy services to clients.
2. The PSC is set up as a limited liability company. Therefore, it provides protection for professionals offering consultancy services who will usually adopt a professional indemnity cover in order to reduce risks associated with his business. By using a PSC, such risk is reduced even further.
3. Using a PSC reduces the legal, accounting and administrative costs which can arise upon setting up such a company onshore
4. Using a PSC in one of the recommended jurisdictions will ease the taxpayer’s liability as the rate of tax will be much lower than in his country of residence, if not nil.
5. The PSC would be used mainly by expatriates, persons providing international services and consultancy, and professionals looking for asset protection against potential liabilities.