Best way to set up company to charge customers Tax Free?

[HeinzKetchup69]

Is there any company (between the ones listed below) that allow the company to be used to charge clients for services/goods, and then transfer the funds tax free into a foreign company: (e.g: UAE company) without going into illegal tax evasion areas?

For example:
- Irish company used to set up Stripe charges clients
- Profits are distributed from the Irish company into a UAE company either through Dividends OR the UAE company charges the Irish company for services
- The Director would be a resident of the UAE or similar low tax jurisdiction ( such as: Hungary, UAE, Hong Kong, etc...)


Is this possible and what is the Tax legal framework to make this work?

The reason behind this is that I need one of the countries below to charge my clients since it has high reputation and Stripe is easily supported.

Countries I'm talking about to set up the company that would charge clients on the front end:
Australia Austria Belgium Canada Czechia Denmark Finland France Germany Ireland Italy Netherlands New Zealand Portugal Romania Spain Sweden Switzerland
( I can legally reside in all of these countries to open bank accounts if required since I hold multiple passports )

 

[EliasIT]

The topic has already been covered in several threads here. It requires that you first register an operating company in the destination country (Company A), and then register a subsidiary (Company B), which is 100% owned by Company A and is registered as the payment processor for Company A.

You’ll need an accountant or a lawyer to help you register this properly, otherwise, you might end up paying taxes in both countries.

 

[HeinzKetchup69]

The topic has already been covered in several threads here. It requires that you first register an operating company in the destination country (Company A), and then register a subsidiary (Company B), which is 100% owned by Company A and is registered as the payment processor for Company A.

You’ll need an accountant or a lawyer to help you register this properly, otherwise, you might end up paying taxes in both countries.

That is a problem. It is not seen very well from payment processors, and some banks, they want a real director (not a company) when you set up an account with them.

Is there a way to simply "charge" the main company a fee to transfer the funds into the secondary (tax free) company and keep them separate?

 

[EliasIT]

Is there a way to simply "charge" the main company a fee to transfer the funds into the secondary (tax free) company and keep them separate?

Not as far as I know.

That is a problem. It is not seen very well from payment processors, and some banks, they want a real director (not a company) when you set up an account with them.

if it is a problem, look inside mentor group gold, can only recommend it. as @jafo says.... There i fixed it for you.

 

[daniels27]

To be honest, it definitely is possible. And I have seen many companies like this in the DACH area. You can for example setup a German company for your processing needs. Towards stripe you will claim to be resident in Germany and show them adequate proof of address. You then "relocate" to Switzerland and register your German company there. You then apply for a ruling with the tax authorities (most DTA include a ruling sharing, hence you only need one ruling with one country). You must state that you are a bona fide resident of Switzerland and only live in Switzerland but have the German company still and would hence suggest it to be taxed uniquely in Switzerland under the DTA articles X.

This is the very official way. It takes some effort, you can do it without tax advisor on your own if you want.

The alternative is that you set up your company in Ireland etc. You will still need to go there and get some address proof. Maybe open a bank account on a hotel you stay in etc. You will also need some mail receiving and forwarding agent for this in Ireland. You then set up another company in the jurisdiction of your choice. This company does all the operations while the Irish company acts as a Seller/Merchant of Record and only does the selling at a margin of typically 1 to 3%. You then pay taxes on those 3% in Ireland, which is about 1/400 of your turnover.

 

[HeinzKetchup69]

To be honest, it definitely is possible. And I have seen many companies like this in the DACH area. You can for example setup a German company for your processing needs. Towards stripe you will claim to be resident in Germany and show them adequate proof of address. You then "relocate" to Switzerland and register your German company there. You then apply for a ruling with the tax authorities (most DTA include a ruling sharing, hence you only need one ruling with one country). You must state that you are a bona fide resident of Switzerland and only live in Switzerland but have the German company still and would hence suggest it to be taxed uniquely in Switzerland under the DTA articles X.

This is the very official way. It takes some effort, you can do it without tax advisor on your own if you want.

The alternative is that you set up your company in Ireland etc. You will still need to go there and get some address proof. Maybe open a bank account on a hotel you stay in etc. You will also need some mail receiving and forwarding agent for this in Ireland. You then set up another company in the jurisdiction of your choice. This company does all the operations while the Irish company acts as a Seller/Merchant of Record and only does the selling at a margin of typically 1 to 3%. You then pay taxes on those 3% in Ireland, which is about 1/400 of your turnover.

Sounds promising. Can you send me a PM?

 

[dany]

To be honest, it definitely is possible. And I have seen many companies like this in the DACH area. You can for example setup a German company for your processing needs. Towards stripe you will claim to be resident in Germany and show them adequate proof of address. You then "relocate" to Switzerland and register your German company there. You then apply for a ruling with the tax authorities (most DTA include a ruling sharing, hence you only need one ruling with one country). You must state that you are a bona fide resident of Switzerland and only live in Switzerland but have the German company still and would hence suggest it to be taxed uniquely in Switzerland under the DTA articles X.

This is the very official way. It takes some effort, you can do it without tax advisor on your own if you want.

The alternative is that you set up your company in Ireland etc. You will still need to go there and get some address proof. Maybe open a bank account on a hotel you stay in etc. You will also need some mail receiving and forwarding agent for this in Ireland. You then set up another company in the jurisdiction of your choice. This company does all the operations while the Irish company acts as a Seller/Merchant of Record and only does the selling at a margin of typically 1 to 3%. You then pay taxes on those 3% in Ireland, which is about 1/400 of your turnover.

why make it so complicated? setup any company anywhere, register the processing company and done deal.

 

[JustAnotherNomad]

You could look into a partnership like a Dutch CV. Not sure how easy it would be to get banking for such an entity, but tax-wise, it would probably be a good idea.

 

[Houdini]

You could look into a partnership like a Dutch CV. Not sure how easy it would be to get banking for such an entity, but tax-wise, it would probably be a good idea.

what are the tax benefits of an Dutch CV ?

 

[JustAnotherNomad]

It's a tax-transparent entity. To tax in NL if nothing happens in NL. Just like a US LLC, UK LLP etc.

 

[Houdini]

That is a problem. It is not seen very well from payment processors, and some banks, they want a real director (not a company) when you set up an account with them.

you can appoint a director in the UK LTD - no problem.