In terms of taxes, what's the best jurisdiction to open an Offshore Company for launching a Mobile App on the Apple & Google Play Stores?

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OffshoreTalker

Mentor Group Gold
Hello,

I live in a Territorial Tax System country.

In terms of taxes, what's the best jurisdiction to open an Offshore Company for launching a Mobile App on the Apple & Google Play Stores?

For example, I am considering Hong Kong and Singapore because of how quick and relatively cheap it is to open companies there with an EMI bank account. Presumably, since they are also Territorial Tax Systems and I don't live in either, if I prohibit users from each respective country from downloading my App in the App Stores, then the revenue should be considered fully "offshore" with no tax liability.

So along that line of thinking, what is actually the best jurisdiction for this in terms of taxes?
 

BA UK

New member
Hello,

I live in a Territorial Tax System country.

In terms of taxes, what's the best jurisdiction to open an Offshore Company for launching a Mobile App on the Apple & Google Play Stores?

For example, I am considering Hong Kong and Singapore because of how quick and relatively cheap it is to open companies there with an EMI bank account. Presumably, since they are also Territorial Tax Systems and I don't live in either, if I prohibit users from each respective country from downloading my App in the App Stores, then the revenue should be considered fully "offshore" with no tax liability.

So along that line of thinking, what is actually the best jurisdiction for this in terms of taxes?
Hi, I invite you also consider UK, you can create a company in less than 24 hours or buying a ready-made company. PM more details!
 

OffshoreTalker

Mentor Group Gold
Where is your tax residency? Are you an US citizen?
Tax residency is in a Territorial Tax System country with no CFC rules and that would not charge me taxes for such overseas business income.

No, I am not a US citizen.

Hi, I invite you also consider UK, you can create a company in less than 24 hours or buying a ready-made company. PM more details!
Would a UK company be subject to any taxes from the UK in this case? What if I have UK customers of my App?
 

Don

Active Member
Are looking to sell the app at one point? (Make an exit)
UAE, Cyprus, Estonia, Malta, Romania - using these jurisdictions and a little tax planning you can achieve 0% effective tax from operations and exiting the company. (Or very low tax up to 5%).
I wouldn't only look into tax though.
 

OffshoreTalker

Mentor Group Gold
Is the mobile App developed in this Territorial Tax System country?
No, I outsourced it to a Developer in another country (Pakistan).

Are looking to sell the app at one point? (Make an exit)
UAE, Cyprus, Estonia, Malta, Romania - using these jurisdictions and a little tax planning you can achieve 0% effective tax from operations and exiting the company. (Or very low tax up to 5%).
I wouldn't only look into tax though.
Thank you for the suggestions. What advantages do those jurisdictions have over Hong Kong and Singapore for my purposes / situation considering I should be able to achieve 0% tax without much planning or work (presumably I would only need to prohibit locals from the respective countries from being able to download or use my App to ensure there are no local customers of my App)?
 

Don

Active Member
No, I outsourced it to a Developer in another country (Pakistan).


Thank you for the suggestions. What advantages do those jurisdictions have over Hong Kong and Singapore for my purposes / situation considering I should be able to achieve 0% tax without much planning or work (presumably I would only need to prohibit locals from the respective countries from being able to download or use my App to ensure there are no local customers of my App)?
How do you avoid taxation of HK, SG company in your home country? Where will be the director of the company and office based?
 

OffshoreTalker

Mentor Group Gold
How do you avoid taxation of HK, SG company in your home country?
Hong Kong and Singapore are Territorial Tax System countries that only tax companies on profits that are derived from within their jurisdictions. Prohibit users from those jurisdictions, and all income is considered offshore and therefore not liable for corporate taxes.

Where will be the director of the company and office based?
Outside of Hong Kong/Singapore in a Territorial Tax System country with no CFC rules, and therefore not liable for personal income taxes on offshore income derived from a company incorporated outside the country.
 
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Don

Active Member
Hong Kong and Singapore are Territorial Tax System countries that only tax companies on profits that are derived from within their jurisdictions. Prohibit users from those jurisdictions, and all income is considered offshore and therefore not liable for corporate taxes.


Outside of Hong Kong/Singapore in a Territorial Tax System country with no CFC rules, and therefore not liable for personal income taxes on offshore income derived from a company incorporated outside the country.
Absence of cfc rules dont mean there wouldn't be a PE and thus company be fully exposed to liability of paying corporate income taxes in a place where the company is managed from.
 

OffshoreTalker

Mentor Group Gold
Absence of cfc rules dont mean there wouldn't be a PE and thus company be fully exposed to liability of paying corporate income taxes in a place where the company is managed from.
I cannot speak for all Territorial Tax System countries, but in the one I live, overseas companies can be managed locally without incurring any additional tax liabilities (personal or corporate). That was one of the big selling points of the long-term visa I am on here that was used to attract us.


So with all of this that we discussed in mind, what's the best jurisdiction to open an Offshore Company for launching a Mobile App on the Apple & Google Play Stores in terms of taxes ?
 

georgianboy

New member
I cannot speak for all Territorial Tax System countries, but in the one I live, overseas companies can be managed locally without incurring any additional tax liabilities (personal or corporate). That was one of the big selling points of the long-term visa I am on here that was used to attract us.


So with all of this that we discussed in mind, what's the best jurisdiction to open an Offshore Company for launching a Mobile App on the Apple & Google Play Stores in terms of taxes ?
I cant assist you with your question but curious where you live with such system.
 

Don

Active Member
I cannot speak for all Territorial Tax System countries, but in the one I live, overseas companies can be managed locally without incurring any additional tax liabilities (personal or corporate). That was one of the big selling points of the long-term visa I am on here that was used to attract us.


So with all of this that we discussed in mind, what's the best jurisdiction to open an Offshore Company for launching a Mobile App on the Apple & Google Play Stores in terms of taxes ?
Do you happen to have a legal opinion on that matter? Care to share the country in DM?
 

marzio

Mentor Group Gold
DhQ7P4.jpg


This is a list of territorial taxation countries according to Wikipedia so if i would guess i'd say it's Panama
 

Don

Active Member
I cannot speak for all Territorial Tax System countries, but in the one I live, overseas companies can be managed locally without incurring any additional tax liabilities (personal or corporate). That was one of the big selling points of the long-term visa I am on here that was used to attract us.


So with all of this that we discussed in mind, what's the best jurisdiction to open an Offshore Company for launching a Mobile App on the Apple & Google Play Stores in terms of taxes ?
DhQ7P4.jpg


This is a list of territorial taxation countries according to Wikipedia so if i would guess i'd say it's Panama
If it's Panama then the OP is misinformed.
A company is considered as a tax resident when it has been incorporated in Panama and if Panama is regarded as the place where the central management is located. Entities incorporated abroad may also be registered with the tax administration in order to avoid WHT.
Panama follows the Organisation for Economic Co-operation and Development (OECD) PE rules.
The income referable to a PE or fixed place of business is the income obtained by the PE, as if it was an independent or different entity, taking into consideration the activities developed, assets used, and risks assumed.

@marzio or anyone else who can figure out which country allows that please share here.
 

Don

Active Member
@Don i'd say no country allows that, it's probably more along the lines of "we aren't going after foreigners"
Exactly. It is not the best strategy to leave yourself fully exposed this way, and only count on the ignorance of local authorities.
In 2022 and onwards banks can hardly accept such structures as they often need to assess internally wether the structure is used for tax avoidance.
Anyway, op, if you are going to set up anything offshore at least appoint a local director.
 
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OffshoreTalker

Mentor Group Gold
Can we please stay on-topic?

Assuming one does not need to pay taxes in the country where they live when setting up an Offshore Company, what's the best jurisdiction to open an Offshore Company for launching a Mobile App on the Apple & Google Play Stores?

If you don't have an answer to my actual question, then please don't derail this thread with an off-topic post.
 

marzio

Mentor Group Gold
So let me understand, you are looking for informations that will help you but are not willing to give informations that could benefit us by labeling those as off-topic?

Good luck :)
 

OffshoreTalker

Mentor Group Gold
So let me understand, you are looking for informations that will help you but are not willing to give informations that could benefit us by labeling those as off-topic?
First, asking anonymous people where they live violates their privacy and you can't equate that with the generic business question I asked which does not violate anyone's privacy. But it's not even about privacy. Create a different thread for that topic and please stop posting off-topic. Answers in threads don't only help the OP, they help everyone in the future searching for the same question and helps the site by bringing in new members. There are few things more frustrating than finding only 1 thread on the internet that happened to ask the same question you had and has several replies, only to find that none of the replies actually answer the question. You aren't just wasting the time of all current readers here with your off-topic posts and sarcasm, you are also wasting the time of all future readers that find this thread on Google. That diminishes the value of this forum and community since it increases the bounce rate and perceived quality of the site.
 
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