Tax strategies for 2024, new game?

[pieceofmind]

A lot has changed in the age of 2024. From FSI re-definition in Malaysia, to new corporate tax in UAE, to global substance requirements for offshore corporations, to BVI investigations, Thai changes, to way higher bar for MM2H, to Panama Papers, to OECD 15% corporate tax minimum rolling out, countries making changes who want to get off EU’s grey list, and on and on.

I feel the elites are closing in the gaps in a post-COVID world where the mid-class have been able to work remotely. They didn’t like sharing the benefits and seems now harder for anyone making under $500K / yr. It was the dream come true 5+ years ago where the flag theory was for just about anyone, now you need at least $1mil liquid to play the same game.

Anyone else feeling defeated and brain hurting about trying to find a good solution anymore? Any thoughts or is this some kind of cycle?

 

[Marzio]

Brain will hurt if you don't settle for nothing else than 0% tax.

It's a goal that could be reached but there are less options then before.

 

[Sols]

Once you change your goal from achieving zero tax to simply achieving as low tax as possible while living comfortably, it's really not that bad.

 

[manukahoney]

Someone needs to pay for "green" policies, growing bureaucracy, immigration support and vanity projects.

 

[pieceofmind]

Ok yes 0% is over, except for the wealthy (but replaced with compliancy fees so still never 0% really). And morally I’m ok with paying tax as long as it’s not going toward unjust wars.

So what are some options to explore for low tax strategy for a tech freelancer? Still UAE even with added fees for substance? Portugal, Monaco, Cyprus, Malta?

And it seems I must reside where my company is registered because since I operate the business, then it is taxed where I live no matter where the company is since that gap is closing up too.

Apologies for sounding like a newbie, but honestly done so much research over the past year and hired tax consultants and even made some concrete moves within the last year like ending my home country residency and relocating half way around the world.

No regrets but as soon as I started to feel I had a good plan and acting on them, things are drastically changing and many conflicting and outdated info now.

 

[manukahoney]

Still UAE even with added fees for substance? Portugal, Monaco, Cyprus, Malta?

UAE or Cyprus for both personal and corporate residence. The rest will be a pain in the arse.

 

[JohnLocke]

I wouldn't say that 0% tax is over, it's just not possible everywhere where it's also nice to live. And it also depends on whether you have a family - wife, children, etc. - or if you live the single life! If it's the latter, there are probably plenty of paradise islands where you can live without paying taxes. The question is how fun it will be in the long run.

 

[Marzio]

low tax strategy for a tech freelancer

The best option for you would be Polish IP Box at 5% tax if you qualify.

The next best option would probably be Malta's resident non domiciled company where you pay 5000€ tax year if foreign sourced income is over 35K (which is your case) + don't remember exactly how much on any sum remitted to Malta. You have to like island lifestyle.

There is Romania at 1% CIT up to 500K / year turnover + 8% dividends distribution but they are costantly changing rules.

Then there's UAE at 9% but you have to like the place.

At 12.5% there's Cyprus but you have to like island lifestyle.

Those are the first that come to mind, then there are 0% options more in the gray zone that involve creating usually a US LLC and taking tax residency in Panama, Paraguay or Thailand (without remitting anything in Thailand) where you rely on those countries not enforcing PE rules.

 

[Martin Everson]

Anyone else feeling defeated and brain hurting about trying to find a good solution anymore? Any thoughts or is this some kind of cycle?

Nope perfectly happy with my zero tax situation .

Bottom line if your serious is to relocate for now and wait for the below to be enacted. Things are about to change on her tax rules are rolled out globally .

to OECD 15% corporate tax minimum rolling out, countries making changes who want to get off EU’s grey list, and on and on.

OECD grip on global taxation rules is effectively dead since the UN vote earlier this month. OECD will become a defunct entity now...lol. Taxation at global level will now be decided outside this elite group (OECD) of countries and at UN level for a much fairer system going forward.

https://www.offshorecorptalk.com/th...ric’-global-tax-convention-now-adopted.43344/

 

[wellington]

Put everything into Bitcoin so you can walk away and decide where you want to pay tax i guess...?

Nope perfectly happy with my zero tax situation .

Bottom line if your serious is to relocate for now and wait for the below to be enacted. Things are about to change on her tax rules are rolled out globally .



OECD grip on global taxation rules is effectively dead since the UN vote earlier this month. OECD will become a defunct entity now...lol. Taxation at global level will now be decided outside this elite group (OECD) of countries and at UN level for a much fairer system going forward.

https://www.offshorecorptalk.com/th...ric’-global-tax-convention-now-adopted.43344/

Wishful thinking they will still entrap their own citizens.

Ref if countries introduced a min tax rate of 15% thats idiotic, i was speaking with someone yesterday, self employed in the UK, pays the same tax as a PAYE but also has to pay for accounting on top.

Basically killing entrepreneurship and innovation.

 

[Martin Everson]

Wishful thinking they will still entrap their own citizens.

Nope your totally wrong. They will actually chart a different path. One that is fairer and caters for needs of developing countries unfairly penalized by western countries tax practices. Notice how all the tax havens voted its not by accident

The west loves democracy and they got it in this historic vote. They were outnumbered by the developing world at the UN

 

[Konstanz]

You can still do Caribbean and achieve 0% as discussed many times here on the forum.
Disadvantage of Caribbean:
Island life, quite far from everywhere, dependent on flights, quite expensive to live quality life

 

[pieceofmind]

I’m realizing separating the corporation and personal is impossible if you’re a consultant or freelancer due to Permanent Establishment rules in territorial tax regimes I think across the board.

I’m thinking of buying some online or passive income business so I have more options in where I can live. I don’t want to be tied down to my corporation’s country because usually there’s a reason why they give tax incentives begging for people to come.

 

[wellington]

Nope your totally wrong. They will actually chart a different path. One that is fairer and caters for needs of developing countries unfairly penalized by western countries tax practices. Notice how all the tax havens voted its not by accident

The west loves democracy and they got it in this historic vote. They were outnumbered by the developing world at the UN

Still not entirely sure how it doesn't work in the favour of the developing nations (haven't looked into) - but look at like this.

I am a UK Citizen, non-resident (actual) as such i do not pay tax in the UK (would probably drop my citizenship if forced to - in part I left the country because it was deteriorating whilst my huge tax payments to the government were bailing our European Banks specifically in EIRE).

But as a UK Citizen you do not pay tax in the UK unless you have specific assets in the UK, or some other things, namely property, or business.

So that leaves you to the tax levy elsewhere - > territorial, tax haven, or low tax, or high tax, remittance tax, thats your decision, and the decision of the country you choose to reside in, the country you choose to reside in makes their own decisions, you decide if they are attractive to you.

So i am unsure how the developing world is impacted by this or how they were impacted by the prior system, if anything CRS, OECD works in their favour as they can determine if their tax residents are evading taxes, they can also see if their citizens are evading taxes.

So it's a really big plus for them i think.

 

[Martin Everson]

So i am unsure how the developing world is impacted by this or how they were impacted by the prior system, if anything CRS, OECD works in their favour as they can determine if their tax residents are evading taxes, they can also see if their citizens are evading taxes.

So it's a really big plus for them i think.

The issue is the OECD is a small group of nations that decided some tax rules in their favour and to their benefit. The west cannot simply decide the tax rules for the world when they are in the minority. A fairer system would be to allow all countries to vote or give input on any global tax changes that negatively or positively impact them. All countries need a voice and for their priorities to be taken into account. The decision making needs to be democratic just like this UN vote. If the tax rules are just then the majority of the world will agree with it. If they don't then it gets ditched....its called democracy something the OECD should support now the body is irrelevant when it comes to global taxation .

But don't believe me believe the world. Just look at the voting results it speaks for itself. The majority of the world has spoken and left the OECD and west out in the cold.

I am a UK Citizen, non-resident (actual) as such i do not pay tax in the UK (would probably drop my citizenship if forced to - in part I left the country because it was deteriorating whilst my huge tax payments to the government were bailing our European Banks specifically in EIRE).

I am not a UK citizen but left years ago for same reason after a short spell. The writing was on the wall even as a non-dom. Taxes have gone up and non-dom scheme may be cancelled if Labour come to power following their last failed bid to scrap it under the Conservatives.

 

[maxiz]

The issue is the OECD is a small group of nations that decided some tax rules in their favour and to their benefit. The west cannot simply decide the tax rules for the world when they are in the minority. A fairer system would be to allow all countries to vote or give input on any global tax changes that negatively or positively impact them. All countries need a voice and for their priorities to be taken into account. The decision making needs to be democratic just like this UN vote. If the tax rules are just then the majority of the world will agree with it. If they don't then it gets ditched....its called democracy something the OECD should support now the body is irrelevant when it comes to global taxation .

But don't believe me believe the world. Just look at the voting results it speaks for itself. The majority of the world has spoken and left the OECD and west out in the cold.



I am not a UK citizen but left years ago for same reason after a short spell. The writing was on the wall even as a non-dom. Taxes have gone up and non-dom scheme may be cancelled if Labour come to power following their last failed bid to scrap it under the Conservatives.

I think that your expect too much as changes, due to that vote, but Eventually, most the countries that voted, will need OECD or it`s members, for loans\trade\etc.. and will play by the rules set by them.

 

[Martin Everson]

I think that your expect too much as changes, due to that vote, but Eventually, most the countries that voted, will need OECD or it`s members, for loans\trade\etc.. and will play by the rules set by them.

Wishful thinking. The world is changing.

 

[Kirito]

@pieceofmind I'm a freelancer too. Please let me know if you find a solution

 

[Revoltec]

@pieceofmind I'm a freelancer too. Please let me know if you find a solution

Why don't you freelancers go to Georgia?

 

[lacomaco]

Wishful thinking. The world is changing.

OECD countries generate around 90% of the world’s GDP. Money talks bullsh…t walks