how UK rich guy survive?
- Thread starter amzzoo
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ReliableSEOGuy
Power Member
- Feb 23, 2015
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- Jan 22, 2008
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USA is the last place where you should go. IRS is crazy.
In Europe we have many ways to avoid taxes:
-add expenses to your company, that reduces taxes
-UK and Germany have huge "free of tax" limit
-you can have multiple ltd companies in many countries to reduce tax and move money
pro tip: Estonia, Czech, Slovakia, Cyprus - they are all in EU, also UK have some tax paridse territories outside main island
- Jan 22, 2008
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Thx these taxes, Europe have the best roads and medical services on the world
Even Obama was jealous and made some Obama Care
Vybra
BANNED
- Jul 2, 2018
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That is the good thing about paying taxesThx these taxes, Europe have the best roads and medical services on the world
Even Obama was jealous and made some Obama Care
and a lot of other good things come with it. Where I live (Peru), probably less than half of the companies pay their taxes correctly. Hopefully, that will change someday or we will never progress...
- Feb 12, 2018
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In Estonia you need to pay tax when you go over 6000 euros revenue, it was 2000 something before and was recently changed.. And If im correct then this number starts around 60 000 pounds in UK.
- Jan 22, 2008
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But there is one difference:
in UK, you pay tax when you get income, in Estonia you pay tax when you consume income for personal usage. It means, every reinvest in Estonia is free of tax. It's perfect for bitcoin traders but also internet business. Earn>reinvest>earn>reinvest. You can pay tax after 10 years.
Yes, you need to consume but also your company can be owner of your flat, cars, etc. You have also 50 euro/day diet for business traveling (for example hotel...or food).
pro tip: you can be resident of Spain, biggest tax free in EU and just move cash from Estonia to Spain
Someone who’s “rich” can always survive.
Let’s say you make 60k a year and you pay 40% taxes flat, that’s 24k. You then would have 36k left.
Now lets compare this to someone who makes 200k a year and has to pay 50% tax because of the amount he makes, that would be 100k for the government and 100k for him. I would always rather earn more money and pay more taxes than the other way around.
Obviously this is all simplified just to showcase that rich people don’t need to worry about taxes as the middleclass does.
Let’s say you make 60k a year and you pay 40% taxes flat, that’s 24k. You then would have 36k left.
Now lets compare this to someone who makes 200k a year and has to pay 50% tax because of the amount he makes, that would be 100k for the government and 100k for him. I would always rather earn more money and pay more taxes than the other way around.
Obviously this is all simplified just to showcase that rich people don’t need to worry about taxes as the middleclass does.
Tax isn't 40% at all. The 40% is just one of the tax brackets in the UK.
https://www.gov.uk/government/publications/rates-and-allowances-income-tax/income-tax-rates-and-allowances-current-and-past
- Nov 3, 2017
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Eh the naiveness.
Business taxes:
US corporate tax until Trump - 35% (now 21%).
EU average - 21%.
UK specifically - 20%.
Lets look at individuals:
For the US "effective tax rate of about 24% for the average household" - now add Health insurance (6% of annual income) and 401 plans (6.2% at average)... = 36%
For EU average: 44%, for UK specifically 35% (remember this includes your health insurance, pension, unemployment insurance, sick days (usually unlimited) and so on).
So all in all in the US you are paying the same taxes as in the EU, but you are getting WAY less for your money.
Gr00t007
Power Member
- Sep 17, 2017
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India's per capita income as of March 2018 was $1978 ~1,42,572.50 INR. There's no income tax till an income of 2,50,000 INR.
For FY 2017-18, the max tax slab is 30% for an income of 10,00,000 INR.
Only 1% of 120 crore people paid income tax as of 2015-16. Moreover, only 76 lakh people showed income of over Rs 5 lakh. So I don't know from where are you saying that 30% tax is for "moderate income".
Secondly, it's the corruption that has slowed down the country's growth and i mean corruption among citizens and government.
No offense but you can't generalize that every tax paying citizen has a moderate income of 10,00,000 INR ( i wish) just because you "might" be having it.
Also, I don't think, the UK and US have ever seen the amount of poverty that people in Asia (mostly colonized countries) have seen. All we can hope is for a better future.
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- Sep 10, 2010
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If the income is more than 10,00,000 INR, you pay 30%. I considered 10,00,000 INR as moderate (I am comparing the income to other countries.. because this is an IM forum and people over here earn money not according to where they stay but according to what they do) but it depends whom you are talking to. I had to pay 30% for the last two years (after all the deductions like 80C, 80D etc). What I get in return? Nuts..
All I see is broken roads,broken bridges,poor medical services and whatnot. I don't care how many people pay taxes. All I want is value for money for the taxes I paid.
Gr00t007
Power Member
- Sep 17, 2017
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So you don't know a thing buddy. I spoonfed you all the stats and still you're ignoring them just because one person among a million is earning that? So you need good roads for the whole country, or maybe your area in 3~4 Lakh? Then you're better off building one for yourself as you'll be the incharge so less corruption and quick work.
- Sep 10, 2010
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I am not ignoring the stats. I am just saying that it is just better to live in an European country and pay 45% tax than living in a developing country and pay 30% tax and get nothing out of it. I hope you get it. Perhaps, you should read my original post again