Professional Services Companies (PSC)
Expatriates working abroad often utilize an offshore company when providing personal services to minimize tax burdens where they are perhaps not resident in a particular country and travel extensively for their business. Or perhaps where their country of residence only taxes domestic sourced income. In such cases, the contracting company may contract with the offshore company rather than the individual directly. The owner of the offshore company may then be paid out of dividends, consulting fees or salary from the offshore company depending on which would achieve the best tax treatment.