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What does distributed profits means?

SoNewToAllShit

Pro Member
Sep 10, 2018
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Can you explain or draw what exactly distributed profits means?

I read it in a lot of threads where ppl try to gain 0% tax on profits, the latest I read was below:
10M outsourced services (33.3%) to Estonian company that does not distribute profits (0% tax)
How does it work ?
 
Once company has paid corporate tax in Dubai, the rest can be send to the shareholders in Estonia without taxes.. the shareholder must be Estonia citizens to get tax free profits?
You are making confusion. We were talking of profits of an Estonian company.
Estonian residents pay taxes on their worldwide profits.
 
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okay, now I think I understand it.

I can use distributed funds to the Estonia company once there tax free, I can reinvest it in other business! I don't need to take out the money for taxation!

Is Estonia the only country or Cyprus and UK LTD could work also?