Hello
I'm a lurker on this forum and just registered to get some advice.
I am doing affiliate marketing and making good profits 40,000 $ monthly. I live in the Netherlands.
With this amount of money I need a company formation.
What I basically want is:
- To pay less taxes
- Rather not move to another country, maybe Hong Kong. But I think the Dutch Tax Authorities will still try to get their taxes even if I cut all ties.
- Be able to live good
I have researched 2 options:
1. Dutch B.V (100% legit way)
You pay 20% corporate taxes as a Dutch B.V on the profits. The UBO needs to get a minimum salary of 46,000 EU a year which you need to pay income tax over so you keep like 23,000 EU a year of salary. If you want to pay dividend to yourself you pay 25% total taxes on it.
My plan is to keep everything in the B.V and make as many expenses as possible. But the problem is that the authorities will question those expenses. How can I travel with the profits I made? How can I enjoy live with it?
2. UK Limited with IBC
In the Netherlands the UK Limited is a legit alternative to the B.V as of 2003. I found a company in the Netherlands that offers a company formation:
The formation is: Company (Limited) owned by a holding (Limited), the holding is owned by a IBC (Limited). The IBC has a nominee shareholder. The IBC will be sending invoices so there will be no profits.
+ So you don't pay 20% corporate taxes.
+ UBO minimum salary can be 20,000 a year
- still need to pay income tax if I want to take it out of the company unless I move to another country and cut ties with the Netherlands.
I'm not sure if this is a smart formation.
Any advice or suggestions would be appreciated
I'm a lurker on this forum and just registered to get some advice.
I am doing affiliate marketing and making good profits 40,000 $ monthly. I live in the Netherlands.
With this amount of money I need a company formation.
What I basically want is:
- To pay less taxes
- Rather not move to another country, maybe Hong Kong. But I think the Dutch Tax Authorities will still try to get their taxes even if I cut all ties.
- Be able to live good
I have researched 2 options:
1. Dutch B.V (100% legit way)
You pay 20% corporate taxes as a Dutch B.V on the profits. The UBO needs to get a minimum salary of 46,000 EU a year which you need to pay income tax over so you keep like 23,000 EU a year of salary. If you want to pay dividend to yourself you pay 25% total taxes on it.
My plan is to keep everything in the B.V and make as many expenses as possible. But the problem is that the authorities will question those expenses. How can I travel with the profits I made? How can I enjoy live with it?
2. UK Limited with IBC
In the Netherlands the UK Limited is a legit alternative to the B.V as of 2003. I found a company in the Netherlands that offers a company formation:
The formation is: Company (Limited) owned by a holding (Limited), the holding is owned by a IBC (Limited). The IBC has a nominee shareholder. The IBC will be sending invoices so there will be no profits.
+ So you don't pay 20% corporate taxes.
+ UBO minimum salary can be 20,000 a year
- still need to pay income tax if I want to take it out of the company unless I move to another country and cut ties with the Netherlands.
I'm not sure if this is a smart formation.
Any advice or suggestions would be appreciated