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Question Escaping Australia - Controlled Foreign Company Laws and living as a Nomad

flyinglow

flyinglow

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#1
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Hey guys, happy to have found this forum.

I run a location independent business which is currently incorporated in Australia. I want to get out of this hellhole and have thought of multiple strategies, however there is only one that I don't really have full clarity of, and that is whether I could incorporate my business elsewhere, live nomadically, pay tax as an INDIVIDUAL in Australia, however not pay company tax in Australia.

This issue has almost morphed into an ideological one. Would someone please tell me if I'm being over-emotional about it? I just don't want to pay tax in a jurisdiction that treats me like cattle and locks up the population like we're prisoners. I have been in lockdown for 3 months now, and it seems vaccine passports are under way. I'm not vaccinated and don't plan to be, however in the next couple of months it looks like they're going to mandate it for travel, meaning I would have to leave before spending Christmas and my 21st birthday with family here, making it very rushed.

But I don't want this to be a sob story. I am willing to leave, ASAP, I am just trying to find out if there is a way I can travel, pay an insignificant amount of individual income tax here (I would only be paying myself 60k AUD a year) and then pay no corporate tax because my company would be located overseas (Ireland, Cyprus etc). If it makes any different, I am sole director of company, and have the opportunity to buy a second passport if needed. Also have another passport by descent that is being processed now, although this one isn't of great quality.

I don't want to be trapped here and would need to submit my exit visa papers soon in order to make it out.
 
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#2
I understand they even reject flying out the island, so better hurry up! Avoid EUSSR since it is the same s**t! Depending on your spending capacity you can try Dubai, Thailand (cheaper, still in lockdown but most probably they gonna reopen soon), Chipre, Panama (I like it a lot but I am biased..) etc. Honestly, kind of business (remote or you need a specific location) and spending capacity are the two main factors, but I understand your situation, what is happening in Australia is unbelievable (there is also a specific thread in the forum).
 
#3
Be aware certain other countries will also require vaccination to enter, so maybe see this in a different light as it will benefit your travels.

You'd need to speak to a tax advisor, but from what i have seen so long as you as an individual are considered a tax resident of Australia, CFC rules would state that your company is also Australian as it is run by an Australian resident.

Taken from here:
https://www.ato.gov.au/Business/Int...s,-corporate-limited-partnerships-and-trusts/
"""
A company is a resident of Australia if:
  • it is incorporated in Australia, or
  • although not incorporated in Australia it carries on business in Australia and has either
    • its central management and control in Australia
    • its voting power controlled by shareholders who are residents of Australia.
"""

Your companies voting power would be controlled by shareholders who are residents of Australia.

This would mean you'd need to become a non-resident for tax purposes, easier said than done with the ATO if you're wanting to travel the world.
 
#4
EuroKiss said:
I understand they even reject flying out the island, so better hurry up! Avoid EUSSR since it is the same s**t! Depending on your spending capacity you can try Dubai, Thailand (cheaper, still in lockdown but most probably they gonna reopen soon), Chipre, Panama (I like it a lot but I am biased..) etc. Honestly, kind of business (remote or you need a specific location) and spending capacity are the two main factors, but I understand your situation, what is happening in Australia is unbelievable (there is also a specific thread in the forum).
Click to expand...
Could you link me this thread, can't seem to find it
 
#5
username84447 said:
Be aware certain other countries will also require vaccination to enter, so maybe see this in a different light as it will benefit your travels.

You'd need to speak to a tax advisor, but from what i have seen so long as you as an individual are considered a tax resident of Australia, CFC rules would state that your company is also Australian as it is run by an Australian resident.

Taken from here:
https://www.ato.gov.au/Business/Int...s,-corporate-limited-partnerships-and-trusts/
"""
A company is a resident of Australia if:
  • it is incorporated in Australia, or
  • although not incorporated in Australia it carries on business in Australia and has either
    • its central management and control in Australia
    • its voting power controlled by shareholders who are residents of Australia.
"""

Your companies voting power would be controlled by shareholders who are residents of Australia.

This would mean you'd need to become a non-resident for tax purposes, easier said than done with the ATO if you're wanting to travel the world.
Click to expand...
Thanks for the explanation! This country sure makes it difficult to live a global life. Honestly might even think of renouncing citizenship in the future.
 
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#6
flyinglow said:
Hey guys, happy to have found this forum.

I run a location independent business which is currently incorporated in Australia. I want to get out of this hellhole and have thought of multiple strategies, however there is only one that I don't really have full clarity of, and that is whether I could incorporate my business elsewhere, live nomadically, pay tax as an INDIVIDUAL in Australia, however not pay company tax in Australia.

This issue has almost morphed into an ideological one. Would someone please tell me if I'm being over-emotional about it? I just don't want to pay tax in a jurisdiction that treats me like cattle and locks up the population like we're prisoners. I have been in lockdown for 3 months now, and it seems vaccine passports are under way. I'm not vaccinated and don't plan to be, however in the next couple of months it looks like they're going to mandate it for travel, meaning I would have to leave before spending Christmas and my 21st birthday with family here, making it very rushed.

But I don't want this to be a sob story. I am willing to leave, ASAP, I am just trying to find out if there is a way I can travel, pay an insignificant amount of individual income tax here (I would only be paying myself 60k AUD a year) and then pay no corporate tax because my company would be located overseas (Ireland, Cyprus etc). If it makes any different, I am sole director of company, and have the opportunity to buy a second passport if needed. Also have another passport by descent that is being processed now, although this one isn't of great quality.

I don't want to be trapped here and would need to submit my exit visa papers soon in order to make it out.
Click to expand...
If you are willing to relocate then Cyprus is a great option. 12.5% corporate tax on company's net profit and then just 2.65% GHS contribution on dividend payments, so essentially you have an effective tax rate of 15%.
 
#7
CyprusLaw said:
If you are willing to relocate then Cyprus is a great option. 12.5% corporate tax on company's net profit and then just 2.65% GHS contribution on dividend payments, so essentially you have an effective tax rate of 15%.
Click to expand...
What's the Covid situation like there? Is there mandatory vaccination? Are the planning any vaccine passports etc? Cyprus is a country I haven't even considered for residency, but sounds interesting. Just want to make sure I don't move from one authoritarian shithole to another
 
#8
flyinglow said:
What's the Covid situation like there? Is there mandatory vaccination? Are the planning any vaccine passports etc? Cyprus is a country I haven't even considered for residency, but sounds interesting. Just want to make sure I don't move from one authoritarian shithole to another
Click to expand...
At the moment you need a 'safepass' for most places so basically either being vaccinated or have an antigen or pcr test, noting that most places don't check this.
 
#9
CyprusLaw said:
At the moment you need a 'safepass' for most places so basically either being vaccinated or have an antigen or pcr test, noting that most places don't check this.
Click to expand...
I have done some research, and cyprus seems like a very attractive offer.

I have a very minor criminal record, if I incorporated my company there and intended to become a resident director, would this be an issue?
 
#10
flyinglow said:
I have done some research, and cyprus seems like a very attractive offer.

I have a very minor criminal record, if I incorporated my company there and intended to become a resident director, would this be an issue?
Click to expand...
Could you please give me some more information on this? If it is ok with you I can contact you by PM so that this is not discussed in public.
 
#13
flyinglow said:
I could incorporate my business elsewhere, live nomadically, pay tax as an INDIVIDUAL in Australia, however not pay company tax in Australia.
Click to expand...
Keep in mind is that if you run your company's day to day operations from Australia and you don't have enough substance in the jurisdiction that you incorporated your company in, you will most likely trigger PE (permanent establishment), and your company will be treated as an Australian company from a tax perspective.

So make sure to talk to an Australian CPA and figure it out, because you might have to move out OR hire staff for your company so you could justify substance to the ATO.
 
#14
MiddleEuroAsia said:
Keep in mind is that if you run your company's day to day operations from Australia and you don't have enough substance in the jurisdiction that you incorporated your company in, you will most likely trigger PE (permanent establishment), and your company will be treated as an Australian company from a tax perspective.

So make sure to talk to an Australian CPA and figure it out, because you might have to move out OR hire staff for your company so you could justify substance to the ATO.
Click to expand...
Yah thanks man. I am aware of this, and am angling at just moving out to some place where I can actually live normally day to day.
 
#15
i heard that it is extremely hard to break your tax residency ties with ATO even when you move out of the country. I heard some horror stories about it. My advice is to go the extreme measure to cover your tracks and break your ties if you want to get rid of the Australian Tax residency
 
#16
@flyinglow You say you want to live normally, yet you want to ignore the simple reality of covid. It's not the aussie govt that's keeping you locked down, it's the virus. It's the fact that you selfishly won't get vaccinated and protect your neighbours as well as yourself that causes the lockdowns to keep being extended. Is the govt perfect? No. Is the PM a total tool? Absolutely! But thinking the solution is to run away to some magical country that doesn't require a vaccine and where everyone lives free of lockdowns and viruses is delusional - there is no such place on earth because the virus couldn't give a sh*t about your conspiracy theories. Stop with the conspiracy thinking and face reality. Get vaccinated - if not for you, for everyone around you.
 
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#18
toby9999 said:
@flyinglow You say you want to live normally, yet you want to ignore the simple reality of covid. It's not the aussie govt that's keeping you locked down, it's the virus. It's the fact that you selfishly won't get vaccinated and protect your neighbours as well as yourself that causes the lockdowns to keep being extended. Is the govt perfect? No. Is the PM a total tool? Absolutely! But thinking the solution is to run away to some magical country that doesn't require a vaccine and where everyone lives free of lockdowns and viruses is delusional - there is no such place on earth because the virus couldn't give a sh*t about your conspiracy theories. Stop with the conspiracy thinking and face reality. Get vaccinated - if not for you, for everyone around you.
Click to expand...
No
 
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#19
Totally relate... I fled Europe for real around 2018, after living in Asia for gradually longer periods - told people already back then that I felt happy to make it out just in time!

There are countries and areas where freedom still is up for grabs, like here in Thailand which is not too bad on a daily basis although actually making it here can be quite some process.

Other countries like Vietnam and Malaysia might be worse than even Australia, and super worst case I might have to relocate too. For now it seems that common sense still is intact here, but we won't know what power the globalists have on the ground here for at least a few more months.

Happy to help out if Thailand or Scandinavia is on your map!
 
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