How to avoid taxes for selling virtual item based sites?

velututax

New Member
I have a simple membership based (selling virtual items) site earning 1000-2000 usd monthly average.
I am from Eastern EU.
My business is worldwide and I have blocked my own country from accessing to it.
Payment gateway is US Based and I have both payoneer (virtual US and EU Bank ACC) and my friend's real US Bank ACC -however he isnt living in US and he isnt a US citizen.

-If I get my deposits into that bank acc from payment gateway and cash it in any ATM(VISA-MC Network) in my country then this will not a problem with tax and bank?

I talked with my payment gateway and they said you dont have to enter any tax form because you are not a US citizen and resident.
But what if IRS or US Bank or Payoneer report my earnings to my Country's Tax authority?

-Or should I have to create a seyschelles - belize based company and get a bank acc from there and cash with it?

- Is there any benefit to open a offshore company in my current situation?
 

therealmarv

Building Trust
Entrepreneur
Payment gateways usually work only with US or EU entities. There usually do not work together with Belize or Seychelles companies at all.
 

TurnedToRobot

Trusted Member
Business Angel
You can setup a company for instant in Cyprus and use the LOAN model to pay out money from the company to you tax free.

In order to use the loan model you will need to make use a of a good tax advisor and a tax lawyer, this means the amount you want to pay taxes from has to be high at some point in order to cover the costs of the professionals.
 
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