Online Business - OffShore Bank Account

[Josip Planinic]

Hello there. My name is Josip and im coming from Bosnia and Herzegovina. First of all i would like to apologize in advance if somethings wrong with me posting as this is my first post. Ive read rules and everything but still. I hope its ok to post and ask this next few questions. Looking forward to Your replay.

I am a music producer and beatmaker who works online and currently im recieving payemnts through PayPal and im withdrawing them every 1st of month to my VISA Debit Card - Bank Raiffeisen of Bosnia and Herzegovina. Because of high taxation for freelancers in my country i was reading on internet about offshore companys, bank accounts and so on. And while researching I ve stumble upon your Forum and im reading it 3 days now and Ive already found out for lot of things.

My questions is what would you advise me to do with my situation and where is a best go to place to open a bank account for example in Cypr. to avoid taxation in Bosnia and to withdraw money on VISA Debit Card. I would like to find a person who would help, of course I would like to pay for your service and help as well. I kinda imagine this that i can open an offshore bank account (like savings) and just redirect my paypal payments to that bank account and thats (sounds easy but i read it doesnt go like this unfortunately ).
Bosnia is very corrupt country and they are basiclly stealing money from people with different laws and %.
I hope that you can help me with my situation, sorry for my bad english and looking forward to your replay.

Kindest regards and all the best from Bosnia,

Josip

 

[Martin Everson]

Hi Welcome, Your English is better than mine

The personal and corporate income tax rate in Bosnia and Herzegovina is a flat 10%. What rate are you paying as a freelancer?

 

[Josip Planinic]

Hehe thanks and thanks for Your prompt replay!

Yea thats how its written online, but when you are paying it you have 4% for health insurence. Which I am already paying ( cause im fulltime employeed in one company in Bosnia) and through that job im paying for pension and health insurence. Music production is my 2nd job (as freelancer) and i should be only paying 10% but they added this 4% for health + 6% for pension. And now problem is im paying pension and health double but i have absolutely nothing from it, its like im paying it once. Niether my pension will rise niether health insurence. Ive asked main chief in IRS Tax Office of Bosnia why is that? She sad you just have to pay this son and thats it its above us.. Because this is a corrupt land, things like these happens very often. This is the main reason why i want to redirect my paypal money somewhere else offshore as savings with visa debit card.

 

[Martin Everson]

So you are gonna end up paying 10% + 4% + 6% i.e 20% all together on this 2nd income.

Excuse my English too but.....WTF are you trying to avoid a 20%. That total rate sounds fair and most people can only dream about having to pay just 20% in total on their income. I don't know what to say.....lol. 20% loss on your part time secondary income and you want to work out how to reduce that .......whats the world coming too...lol.

 

[Josip Planinic]

No you got me wrong totally. Did you read my post at all?
Im not trying to avoid taxes i am legalist and paying 10% is totally fine. But paying this additional 10% is stealing, because im paying for it and i have perfectly nothing from it. While on another side. Ive asked my friend whos Bosnian living in Germany also having a primary job and secondary job freelancing (web and graphic design). Hes paying health insurence for 2nd job and HES HAVING BENEFITS FROM IT. I am paying health insurence for my 2nd job and i have absolutely nothing from it. They just say, this money goes to a Health Fund. What am i here financing my state or what? If i would have something like some sorts of benefits for paying health insurence for 2nd job - like (private policlinics up to one point, free stuff at health facilities and etc other things regarding to Health System). I have nothing.
Paying for pension 6% (additional for 2nd job) would normaly raise your pension status? In every country Yes. In Bosnia not.
Would you give your hardworking earnd money just like to to someone? And that amount of money is monthly salary which i can give to my mother or brothers. Why would i give it to a state which is on top list of coruption in Europe. Thats why im trying to avoid paying this. Nothing more.

 

[Martin Everson]

Did you read my post at all?

Your comprehension of English is not as good as I thought .

I asked why you are trying to avoid 20%. You get to keep 80% of what you earn and your complaining? Seriously you are on greedy person. People in most western countries in the world will sell their grandma to have to pay just an extra 10% over the base rate 10%. Paying 20% and keeping 80% or what you earn is very good.

Don't be a greedy fool. Your not earning Bill Gates money where that extra 10% in health and pension combined is $1bn.