NEW Global Corporation Tax

[billybobs]

Can anyone please clarify the 2 scenarios below and how this new global corporation tax would effect me any different to now -

1. Im a UK resident with UK company and sell goods and services worldwide (USA, UK, Europe etc)

2. Im a UAE resident with UAE company and sell goods and services worldwide (USA, UK, Europe etc)

Thankyou

 

[Sols]

You're going to have to book an appointment with a fortune teller if you want firm answers. Nothing is for certain yet. No international treaties and laws have been written, voted on, and put into effect.

 

[vvvictor]

they only know how to raise taxes, impressive It's really hard to understand what's going to happen. Surely not everyone will join

 

[Martin Everson]

Surely not everyone will join

Back in the day that is what they were saying about FATCA and CRS.....and......

 

[vvvictor]

Back in the day that is what they were saying about FATCA and CRS.....and......

I hope for this but no one know. Maybe AMZ, FB, GOOG will take some action against. I hope this tax will help governs to reduce all others tax on people, if not, is a scam

 

[carz]

Any opinions if/how this will effect UAE property market?

 

[Martin Everson]

Any opinions if/how this will effect UAE property market?

UAE property market is about dirty, stolen or untaxed money flowing into it. Don't think this will change anything there.

 

[GPT]

No answers can be given at this moment. The only thing I can say from experience is that "when one door closes, two new doors open".
Keep in mind that it takes (a) decade(s) to come up with a proposal and implement it globally. It takes hours to find a new loophole once its clear on how it will affect "us".

I wouldn't worry too much about it.

I hope for this but no one know. Maybe AMZ, FB, GOOG will take some action against. I hope this tax will help governs to reduce all others tax on people, if not, is a scam

Tax = theft. Always. No exception.

 

[JohnLocke]

Back in the day that is what they were saying about FATCA and CRS.....and......

I totally agree, they can do what ever they want, governments will always be the winner.

 

[troubled soul]

I totally agree, they can do what ever they want, governments will always be the winner.

Still people find way to save tax.

 

[Martin Everson]

Still people find way to save tax.

Yes they will but not in the way it has been done in the past.

 

[fbsworld]

If selling goods to Europe, definitely a UK company because of the new VAT regulation in Europe arriving in July 1, 2021!

 

[GPT]

If selling goods to Europe, definitely a UK company because of the new VAT regulation in Europe arriving in July 1, 2021!

Why would that be beneficial? VAT still needs to be paid in the respective EU countries. Having a UK company is setting yourself up for more admin which means higher accounting costs... A European entity is easier from a compliance point of view and therefore cheaper to maintain.

 

[fbsworld]

Why would that be beneficial? VAT still needs to be paid in the respective EU countries. Having a UK company is setting yourself up for more admin which means higher accounting costs... A European entity is easier from a compliance point of view and therefore cheaper to maintain.

You have to consider 2 points about ecommerce in the EU:
- fiscal transparency of the UK LLP (if you live in a no income tax coutry for sure)
- EU VAT tax agent (for a UK company or any other UE company) versus EU VAT tax representative (for a non-UE company)

 

[GPT]

You have to consider 2 points about ecommerce in the EU:
- fiscal transparency of the UK LLP (if you live in a no income tax coutry for sure)
- EU VAT tax agent (for a UK company or any other UE company) versus EU VAT tax representative (for a non-UE company)

I probably don't understand... why then preferring a UK entity over an EU entity?

 

[fbsworld]

I probably don't understand... why then preferring a UK entity over an EU entity?

Because of the tax transparency of the UK LLP if you are tax resident in a country with no income tax (as UAE) or territorial tax system (as Thailand).

 

[GPT]

Because of the tax transparency of the UK LLP if you are tax resident in a country with no income tax (as UAE) or territorial tax system (as Thailand).

The same applies with any EU entity. Where is the benefit?

 

[fbsworld]

The same applies with any EU entity. Where is the benefit?

Not at all! Have a look to the UK LLP to understand it about tax.

 

[uplana]

Not at all! Have a look to the UK LLP to understand it about tax.

So you mean a UK LTD will be exempted from VAT in any case!?

 

[GPT]

Not at all! Have a look to the UK LLP to understand it about tax.

Its treated transparent. Is that what you mean?

The same applies with an EU entity when you can proof that management and control is exercised somewhere else (can be a tax haven even).