Tax Planning 2019

[JohnnyTrill]

Idea is to incorporate a business and of course, optimise the personal income by leveraging global opportunities.

What I was thinking of is to have a;
- Singapore business for webshop, selling mainly Digital services, this to minimise VAT/GST cost as Revenue below 1m s$ is excluded from VAT/GST
- business in Cyprus, as sort of Holding, for lowest Corporate tax in EU, move money from Singapore business to Cyprus business for Royalties payment (or something like that)
- Cyprus business, owns the Singapore business (Cyprus business is only the shareholder, both need to be created/are new) and use the Singapore business for revenue generation (day-to-day business)
- move money to personal account in EU and use double treaty tax arrangements to avoid paying in EU again on income

My questions;
What do you think of the suggested structure? Have other/better suggestions?
Will the operational company in Singapore have a negative impact on payment processors and acceptance of that business for, for example Stripe, PayPal or other?
Is Bermuda a better option for Holding (like Google does) as the Corporate tax there is 0 (at least, thats what I heard)
I think I will need local Bank account in Singapore and Cyprus (eventually Bermuda) for above, right?

 

[negon]

How much turnover are you doing on a annual basis?

 

[JohnnyTrill]

currently 200k, planning to grow to about 600k this year

is Seychelles or Belize eventually better options instead of Bermuda? Also considering the privacy?

 

[negon]

For many of the setups I have been using during the years I have used Seychelles & Belize corps. I didn't really found there to be a point to setup corps in other places even though I know there may have been benefits doing so which I may not have understood

 

[JohnnyTrill]

Can we chat somewhere? I cannot find an option for DM

 

[sergeylim88]

I might be missing something, and I am no expert of any kind for sure, but let me tell you few things that you have to keep in mind:

• if you are selling services to people who are from EU, you have to charge VAT and pay it to EU's account
• if you are using Cyprus company as a non dom., you will not be paying VAT if you are selling to non EU clients (not sure about this, please check with someone
• now back to CFC rules: paying company profit taxes in Cyprus is fine, but also I've heard of situation that home country in EU will just consider money paid to Cyprus as a credit if the tax rate they have is higher than in Cyprus.

I don't see the point of Singapore company here. Can someone tell me why he should have Singapore company insteade the Cyprus one?