WHAT IS A BOND-FINANCED READY-MADE COMPANY
A bond-financed ready-made company is a unique product, which we offer our customers looking for a ready-made company with a structure prepared for project financing, moreover in a tax-effective manner. A bond-financed ready-made company je ready-made company that has the same prerequisites as a standard ready-made, and in addition has registered an issue of crown bonds with the Central Securities Depository before the end of 2012.
For these bonds, it applies that the tax base for calculating deduction tax will not exceed the crown limit. Because of the lawfully stipulated rounding off of the tax base, individuals pay zero tax on interest gains, which is otherwise 15 per cent.
Hence, company owners have the option of financing projects through bonds issued by the given company, instead of lending the company money from their own resources for interest, on which they would then have to pay tax. Not only do they not pay any tax from the interest, but the company can also include the interest into its expenses and thus reduce its tax base (provided the general conditions of tax eligibility are fulfilled). As a result, it pays lower income tax.
The benefit of bond-financed ready-made companies from 2012 is that at present, it is no longer possible to issue tax-preferential crown bonds, because this option ended as of 31 December 2012. However, the existing favourable tax conditions still apply for bonds registered with the Central Securities Depository before the end of 2012, which is the case of all of our bond-financed ready-made companies. This means that the preferential tax system applies to all of our bond-financed ready-made companies.
BENEFITS OF PURCHASING A BOND-FINANCED READY-MADE COMPANY
- option of tax optimisation
- zero taxation of yields from interest from bond
- possibility of including interest expenses from bonds into the company’s tax-eligible expenses
- reduction of the company’s tax base
- financing through the issue of bonds was arranged for our ready-made companies by issuing bonds in 2012
- at present, new issues of these “crown” bonds cannot be made