Tax Free Zone - Zero Tax

[Wilson Grant Fisk]

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.

Pretty clear you don't know what you are talking about.

 

[winston_wolf]

- 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?

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.

Exactly what's puzzling me too. And even if you manage to avoid personal bank account to get money, i think you'd have to be really careful with spending it, especially in tax strict countries.

 

[mickyfu]

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.

Yeah I can see it standing up in court too.

No no no you don't understand, it's all above board your honour, @konfuci at blackhatword told me so.

 

[jonathgb26]

You can earn money online without declaring any tax that you're liable on it if you're living in a third-world country

 

[mickyfu]

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

It's also fact that you can avoid paying taxes by working on line and simply not declaring anything at all. Doesn't make it legal.

 

[indianfreak]

It's also fact that you can avoid paying taxes by working on line and simply not declaring anything at all. Doesn't make it legal.

Even in a third world country like India it is not possible nowadays. The money comes through RBI (Reserve Bank of India) to your bank accounts that have linked PAN and Aadhaar details (Unique tax and individual identifications). So, the big brothers knows!

 

[kickthat]

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.

And I can't comment on the situation where you are based, but it certainly does not work like that in the UK, as I explained.

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 ?

Herein lies the problem. In the UK at least, company and personal tax allowance are handled entirely differently and are seen as separate entities. Paying one does not mean you are exempt from the other.
Let's ignore your offshore solution for the moment and say I am resident in the UK, running a company which is also based in the UK. Again, company tax and personal tax are treated entirely differently.

As I said, if you're running a limited company, you cannot just use company money to buy your food, buy new clothes etc. If it's not directly related to the company, and the business, you can't pay for it with business money. You pay company corporation tax on your business profits when you do your taxes. You also pay VAT if you're VAT registered.

That means in order to survive (rent, food, etc) you have to withdraw money from the company accounts. Putting it simply, the two main ways of doing this are paying a dividend or paying yourself a salary. Either way, that is seen by HMRC (the taxman) as a personal income. They don't give a shit that you have already paid corporation tax - that was on the company profits, not your personal income - you have to pay both.

Now add back in your offshore solution. It might mean that I pay nothing in (company) corporation tax. But when I take money from that company and move it to my UK bank account, that becomes a personal income and is eligible for income tax.

If you are having a company in a country, from where you take company profit, why should you pay in UK ?

Because it's not company income once I transfer it to my back account for personal use. It's personal income and I am a UK resident. The tax I owe goes to fund services in the country in which I reside (healthcare, education etc).

I'm not sure whether tax is just dealt with in an entirely different way in your country, or whether you don't understand how tax works. You seen to be under the impression that company profit = personal income, which in the UK at least, is not the case.

The Gov.UK site covers this for those based in the UK: https://www.gov.uk/tax-foreign-income

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.

This seems like bad advice as I'm sure it basically amounts to tax avoidance. In fact, so does the whole scheme. If anyone based in the UK is considering something like this, consider the consequences:
https://www.gov.uk/guidance/tax-avoidance-an-introduction

I imagine the US is likely to be equally as strict on avoidance schemes...