Urgent help needed

[Marzio]

Any suggestions for a region that I can do this easily? White listed in EU as my customers are there in several countries?

If you want to use a EU capital company and pay 0% taxes then the only option i'm aware of is the Estonian company with a Bulgarian branch in tax free area setup.

Speak with @Don

 

[JackieTsan]

If you want to use a EU capital company and pay 0% taxes then the only option i'm aware of is the Estonian company with a Bulgarian branch in tax free area setup.

Speak with @Don

I prefer not to use EU capital company, just region that is whitelisted for EU. Any suggestions?

 

[daniels27]

In short you can have a Singapore company while not being resident nor Singaporean. If you make the money outside Singapore and never remit it to Singapore it won't be b taxed. You have to distribute it as dividends directly to the owners bank account which also may not be in Singapore.

Please do not confuse it with FSIE, which is on regards to passive income and concerns situations where you try to avoid dividend taxation of EUSSR companies. It has nothing to do with this. Please do not discuss any FSIE regulations here.

 

[Marzio]

In short you can have a Singapore company while not being resident nor Singaporean. If you make the money outside Singapore and never remit it to Singapore it won't be b taxed. You have to distribute it as dividends directly to the owners bank account which also may not be in Singapore.

To be considered resident in SG a company needs to have substance in SG (a nominee director wouldn't fly) so prepare to shell out some $

Tax Residency of a Company/ Certificate of Residence

Your company is a tax resident of Singapore when its control and management is exercised in Singapore in the preceding calendar year.

www.iras.gov.sg

 

[JackieTsan]

In short you can have a Singapore company while not being resident nor Singaporean. If you make the money outside Singapore and never remit it to Singapore it won't be b taxed. You have to distribute it as dividends directly to the owners bank account which also may not be in Singapore.

Yes I don’t have any residency in Singapore and no customers inside. Nothing in Singapore. I’m just looking to open a real 0% tax region and get the dividends. That’s it ! But this region needs to be EU whitelisted.

To be considered resident in SG a company needs to have substance in SG (a nominee director wouldn't fly) so prepare to shell out some $

But why the company should be considered tax resident of Singapore? If NOT doing so, saves taxes to 0%??

Please do not confuse it with FSIE, which is on regards to passive income and concerns situations where you try to avoid dividend taxation of EUSSR companies.

Every response has a new term to learn, amazing how much knowledge you need to open a company… no idea about it, I’m not asking I’ll research in Google. Thank you very much

 

[Cloudbanck]

@Marzio thank you very much! That’s what I say, it’s better I go with a normal company with director and shareholder, as I need something simple that I can take the dividends every time I have income, easily. Correct? That’s what I need too. Any suggestions for a region that I can do this easily? White listed in EU as my customers are there in several countries?

A US LLC is the simplest I think. That it is disregarded just means that you pay tax as an individual where you live, and not to the US (unless you live in the US or have an office employees there). There are just some quite light reporting requirements to the US.
From the US perspective if you pay yourself from the US LLC it is called a distribution.

Then depending on where you live this distribution can be treated in different ways. There are many places where there is legally or de facto no tax on distributions from US LLCs. And other places where it s best to create a PE/substance in a different country than where you live. And of course high tax western countries where they would tax distributions from your US LLC as if you had a local company.

Another thought is that if you earn around 300k USD, you could pay yourself a 200k salary, and still pay no tax in the UAE using your UAE company. 200k is quite reasonable as salary for a founder/CEO of a successful small business. I think you d be fine with regards to GAAR rules.

 

[Marzio]

But why the company should be considered tax resident of Singapore? If NOT doing so, saves taxes to 0%??

Because if it's not tax resident in Singapore guess where it will be tax resident?

A company can't be tax resident nowhere.

 

[daniels27]

Yes I don’t have any residency in Singapore and no customers inside. Nothing in Singapore. I’m just looking to open a real 0% tax region and get the dividends. That’s it ! But this region needs to be EU whitelisted.

Yes, you do not want to be tax resident in Singapore.

Every response has a new term to learn, amazing how much knowledge you need to open a company… no idea about it, I’m not asking I’ll research in Google. Thank you very much

Sorry to be unprecise. What I mean is that it you read FSIE, you ignore it. It is something that does not apply to your situation. You can ask, but please do not waste your time with discussing and thinking about FSIE regulations as it has nothing to do with active trading .

Because if it's not tax resident in Singapore guess where it will be tax resident?

A company can't be tax resident nowhere.

In Singapore it can. Also we do not know where OP lives. He may be travelling on which case Singapore is a good fit.

A US LLC is the simplest I think. That it is disregarded just means that you pay tax as an individual where you live, and not to the US (unless you live in the US or have an office employees there). There are just some quite light reporting requirements to the US.
From the US perspective if you pay yourself from the US LLC it is called a distribution.

To be honest I would not recommend this. He has a director which is not him.

 

[Marzio]

In Singapore it can.

Ok i got it, you are relying on the fact that SG will not consider the company tax resident because the lack of substance while at the same time appears to EU that the company is tax resident in SG because of the place of incorporation.

It surely can work but be aware that this loophole could be closed like Cyprus did last year.

Also we do not know where OP lives.

This also is a big factor

BTW will you be ale to open a bank account for a SG non resident company?

 

[daniels27]

Ok i got it, you are relying on the fact that SG will not consider the company tax resident because the lack of substance while at the same time appears to EU that the company is tax resident in SG because of the place of incorporation.

From what we know, there is also not substance in Europe. The rules for Singapore are that you cannot remit the revenue from outside Singapore to Singapore. You can even have a PE in Singapore under certain circumstances.

It surely can work but be aware that this loophole could be closed like Cyprus did last year.

This also is a big factor

Yes, it really depends on the circumstances of OP. But he states that he is not the director, I see not much problems with Singapore.

BTW will you be ale to open a bank account for a SG non resident company?

Yes.

 

[Marzio]

If you are sure that a SG company can open bank account outside SG and payment gateway like Stripe and PayPal then it could be a valid option.

Just out of curiosity, will the bank account will be with an EMI like Currenxie?

 

[GPT]

I live abroad, not in UAE. In the one of the two companies, the Director is UAE resindent. Nothing is clear in UAE so I decided to move away rather than getting this headache and stress. BUT WHERE TO GO?????

Wherever you go... it wont be your last move.

Things change at a much faster interval compared to a decade ago which basically means that, if you are adamant on having 0%, you will have to move again, and again.

 

[ZipZop]

Apologies if i was not clear. I said my income is aroud $300k (three hundreds thousands usd) per year, and the cost that I found to struvcture a company in Singapore was around 10.000USD to 15.000 USD. And again need special processes for tax excemption etc etc.. Is not something easy, you open it, invoice, give dividends, 0% tax etc. That's what I am looking for.. No headaches of processes.

What do you think ?

Maybe I missed something... your income is USD 300k (so this will be your company income right?) in UAE the first AED 375k of profit (emphasis on the word "Profit" not income) are exempted, so about USD 100k.
remaining is USD 200k . I assume you have some expenses (corporate but also personal that you can invoice under the company like traveling, F&B,etc..) let's say USD 50k per year.
then are you are living in a country with territorial tax, you can pay yourself at least USD 150k per year which wouldn't be considered as exaggerated.. either as a freelancer (you send your invoice to the company) or salary (as director of the company for exemple).
at the end, as I assume you do not have any customers in UAE so no VAT, you have absolutely no tax. even better you do not need to pay the fees to close the company and open a new one somewhere else. nor the struggle to choose a new jurisdiction that you don't know at all.

what I am missing? it looks like you are stressing out for nothing

 

[benbao]

Maybe I missed something... your income is USD 300k (so this will be your company income right?) in UAE the first AED 375k of profit (emphasis on the word "Profit" not income) are exempted, so about USD 100k.
remaining is USD 200k . I assume you have some expenses (corporate but also personal that you can invoice under the company like traveling, F&B,etc..) let's say USD 50k per year.
then are you are living in a country with territorial tax, you can pay yourself at least USD 150k per year which wouldn't be considered as exaggerated.. either as a freelancer (you send your invoice to the company) or salary (as director of the company for exemple).
at the end, as I assume you do not have any customers in UAE so no VAT, you have absolutely no tax. even better you do not need to pay the fees to close the company and open a new one somewhere else. nor the struggle to choose a new jurisdiction that you don't know at all.

what I am missing? it looks like you are stressing out for nothing

That may all be true but he wants 0%!!! Just plain and simple 0%!!! No questions??? No nothing to do. Where to get it?????

In all honesty this thread has provided some great and interesting solutions. If OP doesn't take any of them he can't be helped anyway

 

[daniels27]

That may all be true but he wants 0%!!! Just plain and simple 0%!!! No questions??? No nothing to do. Where to get it?????

I want that too. in my opinion Guernsey and Singapore are the ones to go.

 

[5K1PP3R]

I wonder can Cambodia be used? The recent thread was quite in favor. US LLC with a personal account in Cambodia on a business visa? You don't need to live in Cambodia. Pay salary, dividends, buy crypto if you want.

 

[daniels27]

I wonder can Cambodia be used? The recent thread was quite in favor. US LLC with a personal account in Cambodia on a business visa? You don't need to live in Cambodia. Pay salary, dividends, buy crypto if you want.

It is tax free?

 

[5K1PP3R]

It is tax free?

Nothing is tax free, but seems like still non CRS and Cambodian banks don't care if you receive dividends on your account there. You can check the link to the original thread. At the same time Cambodian banks are reputable and modern.

So can anybody estimate the feasibility and cost of such a setup? Form a LLC in Wyoming, single partner. Receive 300k EUR yearly, spend 30k on business expenses, send 270k to personal account in Cambodia.

1. is it easy to pull in general?
2. initial costs and yearly costs. Do I still need an agent? Costs?
3. how easy to open an EMI account? Will currenxie work with this setup?
4. any US taxes? Reporting?
5. any issues that there is no personal income reporting?

 

[benbao]

Nothing is tax free, but seems like still non CRS and Cambodian banks don't care if you receive dividends on your account there. You can check the link to the original thread. At the same time Cambodian banks are reputable and modern.

So can anybody estimate the feasibility and cost of such a setup? Form a LLC in Wyoming, single partner. Receive 300k EUR yearly, spend 30k on business expenses, send 270k to personal account in Cambodia.

1. is it easy to pull in general?
2. initial costs and yearly costs. Do I still need an agent? Costs?
3. how easy to open an EMI account? Will currenxie work with this setup?
4. any US taxes? Reporting?
5. any issues that there is no personal income reporting?

Have you ever been to Cambodia? Calling the banks there modern and reputable is... maybe a bit of a stretch

 

[5K1PP3R]

Have you ever been to Cambodia? Calling the banks there modern and reputable is... maybe a bit of a stretch

I know some people personally who recommend Cambodia.
Also @Martin Everson banks there afaik