World travelling and taxation

devnull

Building Trust
Entrepreneur
Hello,

i have a small problem, i have so many places that I want to visit and stay for some time each country. I am a digital nomand, i only like my PC enqipment.

But how does the taxation of personal income, when for example, i am abboard all the time outside of the country?
 

xzars

Building Trust
Entrepreneur
This topic is discussed excessively in this forum and I believe all answers are available.

1. What country issues your passport?
2. Are you registered anywhere but in your country of passport issue for tax purpose?
 

devnull

Building Trust
Entrepreneur
I will use the search function, thank you. (Im german citizen and Malta resident)

I want to visit Singapore, Hong Kong, Vietnam and Thailand in 2019.
 

xzars

Building Trust
Entrepreneur
I will use the search function, thank you. (Im german citizen and Malta resident)

I want to visit Singapore, Hong Kong, Vietnam and Thailand in 2019.
Since I'm a no-name commenter on the internet with no reputation at stake, don't take this as final conclusion. Furthermore, I'm a consumer of tax advice not giver - my basis for comment is to relay information what I've heard from paid conversations when setting up my own structures. 2 More questions:

1. How long do you intend to stay in Singapore, Hong Kong, Vietnam and Thailand in 2019? Do you foresee your stay to extend beyond 3 months in any of the mentioned countries?
2. Do you earn income from any of the following countries in 2019: Malta, Singapore, Hong Kong, Vietnam or Thailand? It's best to earn income from as few (preferrably none) of the states mentioned. Local income is subject to local taxes in all of those countries mentioned (and more importantly - local declaration and reporting). Even when you can get tax credits in Malta, you do not want to have have an obligation to fill tax forms in 5 countries. It would be a major maintenance burden.

It would considerably ease your life in 2019 if you:
a. Do not earn income in Malta, Singapore, Hong Kong, Vietnam and Thailand
b. Do not stay in any of the countries besides Malta for more than 90 days. Although the standard residency test is 183 days, many countries require you to fill forms and elaborate your reason for stay after 90 days.

If you fulfill a and b, your total tax bill will be 5000 euros in 2019 (in benefit of Malta) regardless of how much you earn. And you only declare your income to Malta. Capital gains earned abroad will be fully tax exempt.
 

xzars

Building Trust
Entrepreneur
Just a quick clarification on 5,000 euro tax bill in benefit of Malta. This will be waived if your total foreign earned income is less than 35,000 euros in 2019. Of course, it is highly unlikely that you will earn less than that.
 

devnull

Building Trust
Entrepreneur
@xzars

I am earning income from internet advertiments such as popup ads, and this is from world-wide. Mostly paid by both companies in UAE/Costa Rica and Cyprus. The company which receives the funds currently, is run in HK and UAE.

So i thought, if i am not working in Malta, but keeping my company there, i can get tax-free income outside of Malta.

About b: i stayed more than 183 days in Malta already this year.
 

xzars

Building Trust
Entrepreneur
@xzars

I am earning income from internet advertiments such as popup ads, and this is from world-wide. Mostly paid by both companies in UAE/Costa Rica and Cyprus. The company which receives the funds currently, is run in HK and UAE.

So i thought, if i am not working in Malta, but keeping my company there, i can get tax-free income outside of Malta.

About b: i stayed more than 183 days in Malta already this year.
Are you concerned about your corporate taxation, or personal taxation? The first is far too complex of a topic settle over an internet forum. I can only talk in regards to your personal taxes (after your corporate tax affairs are clear). My advice only covers any dividends, salary or remuneration you receive as an individual.

Malta changed their remittance based taxation system for non-dom individuals. If you earn more than 35,000 eur a year outside the country, you pay the "alterative minimum tax" of 5,000 euros even if you do not remit the funds to Malta. Check this with their tax office to clarify but I'm pretty sure that if you want to escape that alternative minimum tax in 2019, you will need to register as non-resident in Malta ASAP.
 

devnull

Building Trust
Entrepreneur
Uhm, i dont have registiered as Resident in Malta yet, so? I did not heard about alternative mininum tax.
 

xzars

Building Trust
Entrepreneur
Uhm, i dont have registiered as Resident in Malta yet, so? I did not heard about alternative mininum tax.
You said you are resident in Malta. Are you aware you must properly register yourself in Malta to be treated as a resident and let your presence known to local authorities?

As EU national, after 90 days in country have exceeded, and your intention is to make Malta your place of residence you need to go to Valletta Malta or Victoria Gozo and properly fill in some forms. What you are doing is "fly under the radar", subject to steep penalties when caught. There's no point in discussing legal matters and by-law taxation if you already lean towards non-declaration.

Maybe you can use the forum to discuss fly under the radar strategies instead. As you're in the mentor group already, make use of that section. As I've seen numerous times, admin keeps reminding that such strategies should not be discussed on the public pages.
 

devnull

Building Trust
Entrepreneur
Well dont worry, im not over 90 days yet, but im be registiered soon as I already making income here and proper income taxation etc, i also am hired at my own company.

But so, i am not happy with my lawyer office who does the bookholding and taxation for me etc, so im looking for new place to stay, only problem is my rental lease for 1-2 years atm. Maybe Singapore as new home, because of different laws there, that it can befenits to me. I dont like EU either, especially, they made new laws such as Article 13 and now im thinking about leaving EU.
 

xzars

Building Trust
Entrepreneur
Singapore, Hong Kong, Thailand are excellent options for online businessmen. They have territorial taxation - all income earned abroad is exempt from local taxes, something you will not find in EU in 2019. Malta played a tax trap with their alternative minimum tax for non-remitted gains above 35K and no longer qualifies as tax haven for online entrepreneurs. That 5K tax is not much but they already crossed the line by introducing this significant tax change. In the future, it's much easier to further raise this number as the legal framework is in place.
 

devnull

Building Trust
Entrepreneur
Ok, thats the point.... you are right... what if they raised the number to 20K$ mininum tax instead of 5K$ in 2020... so i would choose Singapore business for long term instead, as the country use English as language too. Thanks for pointing this out, not all lawyer tells this.
 

darkster

Trusted Member
Business Angel
Mentor Group
Commercial Service
Singapore is cool place if you have lot of money otherwise it's horrible to work with for the average joe.
 
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