Am I in danger?

Discussion in 'TAX Issues or Questions' started by DarkMonza, Jan 24, 2019.

  1. DarkMonza

    DarkMonza New Member

    Hello,
    First, thank you to all members of this forum, I am new here, it is my first publication but I follow for months.

    Sorry for any English error.

    I will explain my situation.
    I work with a sales site. I'm Brazilian, for now I live in Brazil, but in the next few months I'll be a digital nomad and I'll ask for the declaration of definitive departure from the country. I will no longer be forced to declare for the IRS of my country. I have an LLC Delaware. The payment gateways officially sell in my company's name. But I get the sales money through Ecopayz (EMI), which is in my own name. I transfer the money from Ecopayz to Payoneer (which is in my own name) through Skrill. In other words, the money ends up on the Payoneer.

    I started last year. I don't tax my country's IRS. They don't know (or I imagine they don't) about the existence of my LLC and the profits from my sales. I would like to know if I am taking risks in this scheme that I am doing. If there are any of these services that automatically report information to the IRS. I would like to know what I can do to protect myself better.

    Thanks to everyone who can give an opinion
     
  2. xzars

    xzars Building Trust Entrepreneur

    Not much risk unless of high revenue. I'd just recommend to establish new tax residency somewhere that does not have any income tax. A second-best option is residency in a territorial taxation regime country that doesn't care about foreign-earned income, but obviously, having no obligations to file any tax paperwork would be ideal. Paraguay is an interesting country for option B, it's a stone throw away from your home.
     
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  3. DarkMonza

    DarkMonza New Member

    Thank you for your answer
    Digital nomads have no tax residency and obligation to pay taxes for a country, as far as I know, if anyone disagrees, can correct me. The amounts are currently around 50K, but should increase over time, would ideally migrate to an offshore bank?
     
  4. xzars

    xzars Building Trust Entrepreneur

    This is a temporary privilege you can enjoy. A number of tests are in place which differ from country to country. There's also the fallback OECD framework for determining residency.

    If you fail to establish a new tax residency somewhere and provide evidence as needed, OECD gives tax rights to the country of passport issue. This is effectively allowing residence-based taxation countries to do what USA does - tax based on citizenship.

    As for now, nobody is aggressively practicing this right, but this may change in the future.
     
    happyjohn, DarkMonza and Admin like this.
  5. happyjohn

    happyjohn Corporate Services Entrepreneur Business Angel

    how would this work in real live? can you explain in a few steps?
     
  6. Mark Rucken

    Mark Rucken Building Trust Entrepreneur

    Using that logic ... every damn person on this planet could be a digital nomad :D

    Where do you live? Do you live in Brazil for more than 6 months a year?