US Disregarded Entity LLC and EU

[RealDude]

Has anyone here in the EU had success with their US Disregarded Entity LLC being recognized as a sole proprietorship by the IRS? In which country was that? Does anyone have experience with Germany or Poland (flat 19% PIT or even less)?

 

[Marzio]

In which country was that?

I know a guy in Poland who is selling software through his US LLC and is taking advantage of Polish IP Box.

Total tax paid: 5%

If you aren't a programmer you'll pay 19% flat

 

[RealDude]

I know a guy in Poland who is selling software through his US LLC and is taking advantage of Polish IP Box.

Total tax paid: 5%

If you aren't a programmer you'll pay 19% flat

Im a studied software developer. I will sell with the LLC subscription based
1. mobile apps at apple/google store
2. SaaS

Is IP Box possible in Poland, or less than 19%?

 

[Marzio]

I don't know if your case will work for taking advantage of the IP Box, you should do a consultation with an expert that has positive track record.

I did a quick Google search for you and i found some advertisers:

1. Ewidencja IP BOX - Kancelaria Mentzen
2. Ulga IP BOX dla programistów - PRAVNA.pl
3. Can a programmer take advantage of IP Box in Poland?

The first two are in Polish so shoot them an email asking if they speak english.

 

[RealDude]

Thanks for the links. My guess is that IP Box only works when selling a software license and not for subscription business models. What are the experiences in this forum?

 

[AndyAresa]

IP Box a dochody uzyskane z udostępnienia oprogramowania SaaS – Kancelaria Traple Konarski Podrecki i Wspólnicy

Ulga IP Box pozwala na opodatkowanie dochodów osiągniętych przez podatnika z kwalifikowanych praw własności intelektualnej preferencyjną stawką podatkową w wysokości 5% podstawy opodatkowania. Czy udostępnienie oprogramowania w chmurze w modelu SaaS również może stanowić podstawę zastosowania...

www.traple.pl

if you use google translate and go to the summary at the bottom - it seems saas may be subject to ip box

 

[RealDude]

IP Box a dochody uzyskane z udostępnienia oprogramowania SaaS – Kancelaria Traple Konarski Podrecki i Wspólnicy

Ulga IP Box pozwala na opodatkowanie dochodów osiągniętych przez podatnika z kwalifikowanych praw własności intelektualnej preferencyjną stawką podatkową w wysokości 5% podstawy opodatkowania. Czy udostępnienie oprogramowania w chmurze w modelu SaaS również może stanowić podstawę zastosowania...

www.traple.pl

if you use google translate and go to the summary at the bottom - it seems saas may be subject to ip box

Summary
Taking into account the position taken by the tax authorities, it should be assumed that, in principle, the preferential IP Box tax rate can be applied to income earned from the provision of services involving the provision of SaaS software, regardless of whether or not the agreement provides for the licensing of the software. It is worth remembering, however, that in order to obtain full legal and tax protection for the application of the IP Box relief, so that it is not later challenged by the tax authorities, it is necessary to obtain an individual tax interpretation - which is also emphasized by the Ministry of Finance in its tax explanations on IP Box.

 

[Marzio]

it is necessary to obtain an individual tax interpretation - which is also emphasized by the Ministry of Finance in its tax explanations on IP Box.

This is amazing, with 2-3K you'll have a binding dcision if you will be taxed at 5%

 

[RealDude]

This is amazing, with 2-3K you'll have a binding dcision if you will be taxed at 5%

Has anyone here gone through the process before?

 

[RealDude]

As an alternative model for Germany, one pays a total of 21% tax with a German KG and a permanent establishment in the USA as LP.

 

[OffMyBack]

how do you extract profits ? pay 5% tax but then Poland seems to have a withholding wealth tax of 19%?

 

[RealDude]

how do you extract profits ? pay 5% tax but then Poland seems to have a withholding wealth tax of 19%?

We assume sole proprietorship / personal company taxation (PIT).

 

[Marzio]

Has anyone here gone through the process before?

Yes, the guy who told you in the beginning obtained a binding tax ruling from Polish tax adiministration.

 

[RealDude]

Yes, the guy who told you in the beginning obtained a binding tax ruling from Polish tax adiministration.

With a IT subscription business?

 

[Marzio]

With a IT subscription business?

He sells software, don't know if it's a subscription but regarldess on what he is doing you know that there could be an opportunity for you. Ask somebody that knows this stuff.