Our valued sponsor

E-Commerce company structure for minimal tax

CP9931

New member
Aug 5, 2024
1
2
3
Canada
Hello!

I am looking for some recommendations on an effective structure to lower total effective taxes.
I am currently in the process of cutting ties with Canada and open to relocating (mostly) anywhere. I do have a preference on Malaysia due to the low cost of living and close proximity to the rest of South Asia.

I was originally looking to setup a Labuan company and meet the substance requirements in order to take advantage of the 3% CIT and 0% Dividends. However, from the looks of it, e-commerce does not seem to fall under the approved categories to take advantage of the 3% rate.

Would setting up a company elsewhere with a low CIT, then paying dividends to myself in Malaysia at a 0% rate be something that can work?

Any other suggestions or recommendations are greatly appreciated.

Cheers
 
USA LLC
You pay no CIT in the US as long as there is no permanent establishment in the US (check your tax treaty with the US of your new country of residence though, at least that's how it works with EU countries)
 
Singapore offshore company could work. Then you need to fly under the radar or keep travelling in SEA.

More permanent alternatives would be any of the SEA countries like Idonesia, Taiwan, etc. with about 3% personal income if done properly. If you know which country you prefer, check with a local lawyer doing expats. They normally know the holes.
 
  • Like
Reactions: dirtyharry
USA llc way easier and cheaper than sg company
Sg you are required to do accounting in Singapore and prepare annual financial report. That results in high cost because of high salary of accountant in sg
 
Hello!

I am looking for some recommendations on an effective structure to lower total effective taxes.
I am currently in the process of cutting ties with Canada and open to relocating (mostly) anywhere. I do have a preference on Malaysia due to the low cost of living and close proximity to the rest of South Asia.

I was originally looking to setup a Labuan company and meet the substance requirements in order to take advantage of the 3% CIT and 0% Dividends. However, from the looks of it, e-commerce does not seem to fall under the approved categories to take advantage of the 3% rate.

Would setting up a company elsewhere with a low CIT, then paying dividends to myself in Malaysia at a 0% rate be something that can work?

Any other suggestions or recommendations are greatly appreciated.

Cheers
the thing with labuan is, theres almost like 0% available info.