Tax Free Zone - Zero Tax

[konfuci]

I am running my company in a Tax Free Zone. Which means that any income which I get from abroad (100% of my income is coming from abroad, yours as well ) I do not pay anything in taxes.

With this scheme, I am saving:
- VAT
- Profit Tax

Which is together around 38% !

As it saves a lot for me, I am ready to share my experience with you.
I am open to questions.

 

[Deleted member 658642]

You're probably missing a few lines of instructions there.

 

[konfuci]

Here is to FIZ website, where you can fill the application, freezone.hualingfiz.ge

For any details feel free to ask me.

 

[blogzandstuff]

Here is to FIZ website, where you can fill the application, freezone.hualingfiz.ge

For any details feel free to ask me.

Doesn't really sound like your're promoting

 

[greymoon]

Hello my main questions are :

- What country it is?
- How much it cost to open it?
- Does it have bank account with IBAN to get wire transfers?
- If yes in what country?
- Lets say you live in Europe random country and your tax free company is not in europe - how money reaches you? How you get your money? You use company credit card to take them out from ATM? If yes these money not get taxed in your country?
- Who is your company beneficiar? Who owns shares of it? Because logically that person is taxed in your native country.
- You can open paypal/payoneer and other accoutns with your company?

 

[konfuci]

Doesn't really sound like your're promoting

That's why I did not include any information in the first post.
I am not promoting.

I have digital marketing and web development company,5 month ago I have registered my company in free zone and saved a lot, I am just sharing my experience as it can be a huge benefit for the companies who has at least 5k$ + turnaround in a month.

 

[konfuci]

Hello my main questions are :

- What country it is?
- How much it cost to open it?
- Does it have bank account with IBAN to get wire transfers?
- If yes in what country?
- Lets say you live in Europe random country and your tax free company is not in europe - how money reaches you? How you get your money? You use company credit card to take them out from ATM? If yes these money not get taxed in your country?
- Who is your company beneficiar? Who owns shares of it? Because logically that person is taxed in your native country.
- You can open paypal/payoneer and other accoutns with your company?

- Georgia (europe)
- I paid one time fee around 7k$, there is no cost above it. Cost is depended on the type of company and services you want, I can't comment it in details as I am not the representative of FIZ.
- Yes it has, you will have your bank account in Georgian bank.
- You open a company in Georgia (both foreign legal and physical entity can open a company in Georgia), register Georgian company in free zone, get a bank account and you can take your money either by SWIFT bank transfer or withdraw cash from ATM. Money is not taxed in my country, as the company is registered in Free Zone, company is getting income fro foreign country. Georgian legislation says that company, registered in Free Zone who has income from foreign countries, does not pay any tax.
- Company beneficiary is you or your company. You are registered it and your are the owner.
- Both are working in Georgia. Paypal withdrawal was accepted in Georgia around a year ago.

 

[kickthat]

Surely though, if you are living in another country and taking a salary or income from your business, you are eligible to be paying income tax at the very least on your personal earnings?

I.e company makes £10,000
You keep £9,000 in the company
You pay yourself £1,000 for groceries etc.
You therefore have to pay tax on that £1,000

 

[konfuci]

Surely though, if you are living in another country and taking a salary or income from your business, you are eligible to be paying income tax at the very least on your personal earnings?

I.e company makes £10,000
You keep £9,000 in the company
You pay yourself £1,000 for groceries etc.
You therefore have to pay tax on that £1,000

Let's look at it opposite.

You are having an operating company in Georgia.
Your company has profit 10,000$

You, as a owner, you are getting your profit from your company 10,000$ which is tax free.
You get your money from Georgian company, you should not pay tax in your country as the money you get is fully white and under every regulation.

P.S If you have worked in abroad, got salary, would your salary double taxed in your country? No, the same is here.

 

[kickthat]

Let's look at it opposite.

You are having an operating company in Georgia.
Your company has profit 10,000$

You, as a owner, you are getting your profit from your company 10,000$ which is tax free.
You get your money from Georgian company, you should not pay tax in your country as the money you get is fully white and under every regulation.

P.S If you have worked in abroad, got salary, would your salary double taxed in your country? No, the same is here.

I don't think it works that way. At least not in the UK.

The profits made by a company does not equal personal income. Which means I can't use company money to buy my groceries or other everyday stuff that is not company related.

If I own a company in the UK then I pay corporation tax on those profits, but I would also pay (personal) income tax on any income I get from that company - whether in dividends or in a salary from the company. If you're working as a registered company, rather than as a sole trader, then you can't just move money in and out of the company as you please.

You get your money from Georgian company, you should not pay tax in your country as the money you get is fully white and under every regulation.

I would not expect to pay corporation tax on the company profits, but yes, I would expect that I would still be eligible to pay personal income tax.

P.S If you have worked in abroad, got salary, would your salary double taxed in your country? No, the same is here.

No, because I would be physically based in another country. So I would pay the income tax rate that is applicable in the country I reside in.

What I am saying is if I pay either dividends or a salary to myself out of the company, it would go through my UK bank account and would be seen as income. HMRC in the UK are going to see that as income and as far as I am aware, it would be eligible for personal income tax.

 

[greymoon]

yes thats what I'm asking if company makes 10,000 and I take 1,000 and 9,000 stays in company so whats the point for me from these money? So i need to cash back them in not legal way or some bitcoins - which makes no point in making the company. And if they stays in company and after a year I live eating mcdonalds with 10k monthly income and in company I have 90,000$ after a year so again whats the point for me if I cant use my money.. If i send them to my country to my bank acc its like getting profit and im taxed.

 

[MisterF]

OP,

You paid $7k to set this up ?

 

[konfuci]

I don't think it works that way. At least not in the UK.

The profits made by a company does not equal personal income. Which means I can't use company money to buy my groceries or other everyday stuff that is not company related.

If I own a company in the UK then I pay corporation tax on those profits, but I would also pay (personal) income tax on any income I get from that company - whether in dividends or in a salary from the company. If you're working as a registered company, rather than as a sole trader, then you can't just move money in and out of the company as you please.


I would not expect to pay corporation tax on the company profits, but yes, I would expect that I would still be eligible to pay personal income tax.


No, because I would be physically based in another country. So I would pay the income tax rate that is applicable in the country I reside in.

What I am saying is if I pay either dividends or a salary to myself out of the company, it would go through my UK bank account and would be seen as income. HMRC in the UK are going to see that as income and as far as I am aware, it would be eligible for personal income tax.

I can not comment UK tax, as I do not know it, but logically it should not differ from other countries much.

Let's take a situation, I (Georgian citizen) am having a company in UK, working company which has profit. In UK I made a profit of 100,000$, from there I took 20,000$ profit share and took it in my country. I won't pay anything in my country, so what is different in current situation?
If you are having a company in a country, from where you take company profit, why should you pay in UK ?

P.S alternative for you, can be to find non-UK resident, who will open an company in Georgia (free zone), take out money from company and transfer it to you via Bitcoin.

 

[konfuci]

yes thats what I'm asking if company makes 10,000 and I take 1,000 and 9,000 stays in company so whats the point for me from these money? So i need to cash back them in not legal way or some bitcoins - which makes no point in making the company. And if they stays in company and after a year I live eating mcdonalds with 10k monthly income and in company I have 90,000$ after a year so again whats the point for me if I cant use my money.. If i send them to my country to my bank acc its like getting profit and im taxed.

I don't understand what do you mean by 9,000 stays in company. Why it stays?
You can cash out 10,000$ (whole your profit)

OP,

You paid $7k to set this up ?

Yes. It's worth when you have 5,000$ + monthly income.

 

[1761]

Does this setup require a specific citizenship?
Are you constantly traveling (digital nomad stuff) to keep your company payouts tax free or do you keep them in your company?

 

[mickyfu]

Anyone taking tax advice from this thread probably shouldn't be running a business.

 

[konfuci]

Does this setup require a specific citizenship?
Are you constantly traveling (digital nomad stuff) to keep your company payouts tax free or do you keep them in your company?

It does not need specific citizenship.

I don't travel constantly. I take out money whenever I want, as my money is on Corporate Bank Account and via Online Bank I can make transfer anytime.

 

[Wilson Grant Fisk]

Obvious self promotion bullshit. Probably a bought account.
Prior to this thread OP hasn't posted since 2012, comes back 5 years later to offer tax advice?

 

[konfuci]

Obvious self promotion bullshit. Probably a bought account.
Prior to this thread OP hasn't posted since 2012, comes back 5 years later to offer tax advice?

It's not a tax advise, nor self promotion. It's a fact, how you can avoid taxes.

Once you are running a business with a solid income, you will understand how better it is not to pay 30-40% in shitty taxes.

 

[1761]

I don't travel constantly. I take out money whenever I want, as my money is on Corporate Bank Account and via Online Bank I can make transfer anytime.

I'm pretty sure that you have to pay taxes in the country you are located (if it's not georgia), once you transfer cash to your private account or use the company funds to pay private stuff.

You can prevent this by traveling for example. But there are much better "Digital Nomad" setups.