Amazon UK pays £2.3 M tax on £4 billion sales - Offshore Structure


LONDON (Reuters) - Amazon.com 's main UK business paid $2.3 million pounds of taxes on its 2012 income, it said on Wednesday, despite group UK sales of $4 billion pounds, prompting criticism from lawmakers and competitors.

Corporate tax avoidance has risen to the top of the political agenda in Europe following revelations in the past couple of years about how little big names like Apple Inc ., Starbucks, Google and Microsoft pay in tax in markets where they reap billions of dollars in sales.

The companies say they follow the rules but UK Prime Minister David Cameron has called for international action on the shifting of profits, which can help firms, cut tax bills.

Advised by Simon Cheung, Director of International Tax (HK) Co. Ltd. in Hong Kong .Investment structure for International investment and Business through Hong Kong company for tax efficiency.

When looking at Global expansion, it is often worthwhile for a foreign investor to consider not just the first but its overall plans to invest in the region. The aim should be to ensure that the gains of well-chosen investments are not unnecessarily subjected to taxation in the various jurisdictions involved.

Tax considerations are important for a foreign investor making oversea investments, both in terms of structuring the investment transaction locally and also ensuring that profits and capital gains from the investment can be extracted by the investor in a tax-efficient manner.

International Trading profits

A Hong Kong Trading company negotiates and concludes the terms of the purchase and sale contracts with European suppliers and customers and also carries out the relevant operations outside the Hong Kong . It may be possible to claim that the trading profits so derived are non-taxable in Hong Kong.