Don't go offshore for small growing business?

[thomasparra]

HK fits

Best reply here.

I know a person that moved to a tax haven from Germany and the tax office calculated an insane valuation for his business and a big tax bill to pay.
The sooner in your life you move to a tax haven, the better.

Funny how countries with CIT<15% are considered tax heavens by the west.

 

[banafinfodafuggiano]

Best reply here.

I know a person that moved to a tax haven from Germany and the tax office calculated an insane valuation for his business and a big tax bill to pay.
The sooner in your life you move to a tax haven, the better.

How would the German tax office what is his business about? (domain, name, etc)

How would the German tax office know if that person is still running that specific business when out of the country?

what you are saying doesn't make much sense, now are we creating value of online businesses out of thin air?
you are basically saying the guy has been taxed on an unrealised profit (the sale of the business which never happened).

 

[bonox]

what you are saying doesn't make much sense, now are we creating value of online businesses out of thin air?

Some people around guessing more like they know what they are talking about.

 

[MrBurns]

How would the German tax office what is his business about? (domain, name, etc)

How would the German tax office know if that person is still running that specific business when out of the country?

what you are saying doesn't make much sense, now are we creating value of online businesses out of thin air?
you are basically saying the guy has been taxed on an unrealised profit (the sale of the business which never happened).

The guy had a German company from which he was running his business.
The guy moved to a tax haven.
Told the German authorities that he moved to a tax haven.
The German authorities wanted exit tax on his company.

Very simple.

f you don't believe me, try it for yourself and report back to us with your findings. I'm sure the German authorities will be very nice and soft with you.

Funny how countries with CIT<15% are considered tax heavens by the west.

Where did I mention 15%? There are multiple tax havens in Europe with practical zero tax (terrirotial taxation, taxation only on remittence, etc).
I consider a country with 0% tax a tax haven. If you have anything better than 0% tax, please let us all know, I'm sure people here would love to hear about a country with negative income tax...

 

[sergeylim88]

which taxes heavens (0%) are in Europe?
which Europe countries have territorial tax?

 

[banafinfodafuggiano]

The guy had a German company from which he was running his business.
The guy moved to a tax haven.
Told the German authorities that he moved to a tax haven.
The German authorities wanted exit tax on his company.

Very simple.

f you don't believe me, try it for yourself and report back to us with your findings. I'm sure the German authorities will be very nice and soft with you.


Where did I mention 15%? There are multiple tax havens in Europe with practical zero tax (terrirotial taxation, taxation only on remittence, etc).
I consider a country with 0% tax a tax haven. If you have anything better than 0% tax, please let us all know, I'm sure people here would love to hear about a country with negative income tax...

mention these European countries please? Except Monaco and Andorra?

 

[baio12]

One option to eliminate exit tax is not to close the business instantly but to start the same business abroad.

You would let revenue slowly fall over many years then close it?

Tax authority would catch this because of CRS they would know about your new business bank account in the other country.

Another option is to find legal reasons why you cannot proceed with this business in your home country (in such a case, most likely exit tax is not applied).

Have you seen such scenario happen?

I know a person that moved to a tax haven from Germany and the tax office calculated an insane valuation for his business and a big tax bill to pay.
The sooner in your life you move to a tax haven, the better.

You agree with advise to run it in your home country until it makes sense to go offshore?

How would the German tax office what is his business about? (domain, name, etc)

How would the German tax office know if that person is still running that specific business when out of the country?

They can ask him these things when valuating the business for exit tax. If he removes tax residence from Germany they will need to know where he is becoming tax resident. They can search the business and see it is still operating from new country. If he lie about that they will see it same as regular tax evasion.

 

[banafinfodafuggiano]

You would let revenue slowly fall over many years then close it?

Tax authority would catch this because of CRS they would know about your new business bank account in the other country.

Have you seen such scenario happen?

You agree with advise to run it in your home country until it makes sense to go offshore?


They can ask him these things when valuating the business for exit tax. If he removes tax residence from Germany they will need to know where he is becoming tax resident. They can search the business and see it is still operating from new country. If he lie about that they will see it same as regular tax evasion.

You are over thinking.

Previous business failed, hence it was closed.

The new business is about something else... serial entrepreneurs start new startups all the fucking damn times...

I launched 15x new sites this year alone. Good luck keeping track of that.

 

[baio12]

I launched 15x new sites this year alone. Good luck keeping track of that.

Offtopic but do you start new business structures for new sites?

It's interesting for me are you comfortable to say what general industry or type (affiliate or software as service) where you can launch sites so quick?

 

[banafinfodafuggiano]

Offtopic but do you start new business structures for new sites?

It's interesting for me are you comfortable to say what general industry or type (affiliate or software as service) where you can launch sites so quick?

it's costly to run multiple business structures.

Since they are all of the same type, I run them all under the same private company.

I heard in Europe and other bureaucratic countries it's more complicated though.


I'm in ecom + blogging + services. Been doing this for 10 years now.