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How best to conduct business when there are a lot of payments to individuals from all over the world

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kandopoga

New member
We are an Internet advertising service (advertising network), we receive money from advertisers, take commission and pay them to publishers (owners of sites where we show ads). Most publishers are individuals from all over the world, and payments to individuals from classical jurisdictions (Europe) are a big problem. The accountants who were consulted all say that a large number of such payments, even if you collect a lot of documents from the recipients of payments, will most likely arouse the tax authorities' attention. And the tax authorities, most likely, will not allow these payments to be taken into account as costs. And considering 80-90% of such activities, it will break the entire economy.

Please tell me how best to organize such an activity?

Thanks
 

BlueMist

Entrepreneur
Malta + EMI (e.g. Finductive)
or
UAE + EMI (e.g. Paysera).

Nobody should question this as long as those individuals would issue an invoice against this payment. I also pay many individuals every month from Malta company and have no problems getting this accounted as expense.
 

kandopoga

New member
Malta + EMI (e.g. Finductive)
or
UAE + EMI (e.g. Paysera).

Nobody should question this as long as those individuals would issue an invoice against this payment. I also pay many individuals every month from Malta company and have no problems getting this accounted as expense.
Thanks for your reply

One more aspect about invoicing. Our "product" is an internet traffic counted by our system. So we are calculating how much to pay to our publishers and automatically issuing invoices on their behalf. Some consultants told me that that is absolutely not ok for tax offices from most of continental jurisdictions (invoice must be issued by supplier itself). How do you think - is it ok for Malta?

Regarding UAE. Some of our publishers - owners of adult sites. As I know - adult is strictly prohibited in UAE so it's risky to work with such counterparties. Am I wrong?

Currently we are working via classical offshore + some EMIs and without bank accounts. But this option will not work for long time, thus we are looking for better alternative that will allow us to have a bank account.

Thanks once again.
 

BlueMist

Entrepreneur
One more aspect about invoicing. Our "product" is an internet traffic counted by our system. So we are calculating how much to pay to our publishers and automatically issuing invoices on their behalf. Some consultants told me that that is absolutely not ok for tax offices from most of continental jurisdictions (invoice must be issued by supplier itself). How do you think - is it ok for Malta?

I think so. Many companies do it like that, for example Google adMob. There is also German mobile advertising company doing the same - AddApptr, they issue automatic invoices based on the revenues less their commission.

Regarding UAE. Some of our publishers - owners of adult sites. As I know - adult is strictly prohibited in UAE so it's risky to work with such counterparties. Am I wrong?
I would think there is little risk. I guess the company name behind the adult business does not implicate the adult business, so who will know? It's not that you run the adult business under UAE FZ LLC.
 

kandopoga

New member
Hm.. Seems strange that it's possible to do with German company.

There is one large player in our area - Exoclick. They are from Spain and also working with individual publishers and also doing self-invoicing. (They cover that by #5 in their terms ). And that is what I'm confusing about. Most accountant and business consultants I've talked with told that working with individuals from EU jurisdictions is a pain. At the same time I see that some of our competitors doing that for years.
 

kandopoga

New member
I think so. Many companies do it like that, for example Google adMob. There is also German mobile advertising company doing the same - AddApptr, they issue automatic invoices based on the revenues less their commission.


I would think there is little risk. I guess the company name behind the adult business does not implicate the adult business, so who will know? It's not that you run the adult business under UAE FZ LLC.

After two months of studying the issue, I still cannot find confirmation that such activities can be carried out from Malta (with payments to individuals without documentary confirmation). I would be very grateful if you could send me where you can qualitatively clarify this point.
Several "consultants" and "tax attorneys" are hesitant to provide conflicting information.

If someone is a specialist in Malta and is ready to advise (and further - help with the opening and support of the company) in our situation - give a sign, please.
 

firstoffshore

New member
I used to apply a merchant account for similar services. They has a website and their client pay to advertise adult services
  • Jurisdictions: we form a company in classic offshore (Belize) with nominee shareholder & director.
  • Merchant Account: Verotel.com
  • EMI: bitsafe.com (another product of Verotel).
    • All the money process by Verotel will be deposit to bitsafe (mandatory).
    • Bitsafe offer Netherlands IBAN & Debit Card
  • Currency:
    • If you processing in EUR, the account is free.
    • If you processing in GBP, the account cost 500 EUR to set-up.
  • Restriction:
    • No USA related.
      • no payment in USD (I just check their website, verotel now accept US Check, so thing may change)
      • Domain & hosting should NOT be buy from US Company. For example: no Godaddy.
      • domain .com is fine as long as you buy from Europe merchant.
    • No International location
      • The service offered to end user should be happen in Europe. For example:
        • a Columbian paid to advertise to offer service in Spain is fine.
        • a Spanish paid to advertise to offer services in Columbia is NOT.
 
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