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[HELP] Offshore company, so I don't pay 44.16% TAX!

Discussion in 'Business & Tax Advice' started by plonk, Aug 3, 2014.

  1. plonk

    plonk Junior Member

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    I need some advice with offshore business.

    I'm currently living/working in Australia. I am a sole trader that allows me to work up to 75k p/a.

    I am leaving in 1 month. After I talked to some professionals regarding business they told me that I can't keep working for too long without being in Australia.

    I am moving back to my home country that is very, very unfriendly for business I believe. If I decide to keep doing what I'm doing here I would have to pay 44.16% TAX per month if I earn more then 300 Euro. It's a nice F U in the face, right..?

    So to have 1000 Euros in my pocket I have to earn around 1800 euros.

    I hate everything that is in my country regarding taxes and law.

    Now Travel is not a issue if I can skip paying 44% tax I'll travel where it's needed just set this up.

    What are the costs involved in opening a offshore business and the typical processes involved?
    How many of you actually have a offshore business..?
     
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  2. Sugirl

    Sugirl Regular Member

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    Probably wrong forum lol.
    95% of members here earn less then $10/day or nothing at all from interwebs
     
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  3. infoasian

    infoasian Supreme Member

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    Just move to a different country where there is no or low taxation. Very simple.
     
  4. Duffers5000

    Duffers5000 Elite Member

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    Offshore is something for large corporations or perennial tax dodgers to get involved in. Despite what you will read on business forums in your situation its something you would want to seriously avoid.

    Speak to an accountant instead of talking heads on the interwebz. Your first plan of action should be to investigate opening a legitimate company and trying to build something.
     
  5. plonk

    plonk Junior Member

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    Well quite a lot of people say they do earn nice amounts, so I hope someone knows something about not paying tax, but staying legal..

    easier said then done, I've been living abroad for the last 2 years, time to go and back and enjoy home...

    Huh, I kind of thought that people here would be masters at avoiding the taxman while staying legal..
    At this stage there was/is no need to open a legitimate company as Australia is very good for sole traders and that is legitimate.

    I will meet accountant when I go home to talk about this.


    How about if I have a offshore bank account, get paid there and then I pay myself via Skrill or some way like that?
    That would be more simple but not legit...
     
  6. GringoMonkey

    GringoMonkey Regular Member

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    Hi,

    Different countries have different tax laws and you don't say where you are from, so it is tricky to help directly.

    It also depends on how much you are making each month and your age!

    But the 3 quickest are...

    1. Keep traveling, so long as you "live" in 3 countries per year and no more than 6 months in each you are "non domiciled for tax".

    2. Buy a pad in Dubai, you get residency and pay 0% tax.

    3. Bearing in mind you said your in Australia, I am assuming traveling to that part of the world isn't a big issue. In which case set up a Hong Kong based company, you pay 0% tax on profits generated outside of Hong Kong.
     
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  7. plonk

    plonk Junior Member

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    I'm originally from Latvia, almost 21 y/o.
    Income about $1000-1500 p/m online.

    Can't afford a pad in Dubai at this stage..
    However I can get address for myself in 3-5 countries: Germany, Scotland and of course Latvia, Australia...
     
  8. GringoMonkey

    GringoMonkey Regular Member

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    Hi,

    There are some countries that allow you to retire there if you are over 50 and have a decent monthly income, but at 21 you cannot do that!

    Unfortunately you don't earn enough money to keep traveling / buy a place in the sun / set up an offshore business. So like most people who just earn an ok living you get f##ked by the taxman!

    I am from the UK, and the amount is too small to even have to really bother telling the taxman - you can earn 10,000 GBP tax free per year. So perhaps using the Scotland address and getting paid into a UK bank account as your business. Then if you can get your friend to withdraw / western union you the money (anything under £1999) doesn't attract UK government interest you can get the money into Latvia without anyone knowing! If you end up earning more get them to WU it weekly!
     
  9. Ralph Urner

    Ralph Urner BANNED BANNED

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    With $1000-1500 per month forget about offshore LLC and shit. Cost of managing it alone would cost you more than your taxes + earning.

    If you doing atleast 20K USD per month. Then i think its profitable to setup offshore setup. Offshore setup come with several strings. Offshore setups are best for people who are responsible for paying other people in bulk without worrying about TAX liabilities. Better suited for those who can pull large amount of money in short periods of time.
     
  10. infoasian

    infoasian Supreme Member

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    You have to keep one thing in mind! Taxman at your home has access to records of health insurance, utility bills, etc. If you have no income and pay no taxes, they will ask you: how do you make a living? They have access to WU payment records, ATM withdrawals from cards in your name. Once those transactions accumulate to more than 6k Euro, your name pops up above the radar.
     
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  11. plonk

    plonk Junior Member

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    Thanks for the tip, I will be in UK/Scotland end of the year and I'll open accounts in both places to keep the options opened for me..

    I guess the amounts I'm working at this stage are too small...Need to make more to successfully avoid tax man...

    My living arrangements home don't require me to pay anything so I have no bills also Health Insurance is not a must have so... theoretically I can get away without poping up..
    What about the prepaid debit cards such as Skrill can a government (a Latvia tiny government) get their hands on that information?


    Thanks for your tips! I appreciate that!
     
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  12. 3pmdigital

    3pmdigital Newbie

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    1st. Yes, Latvia will smack you around with their insane tax rates, social insurance and personal income primarily.

    2nd. Setting up an "offshore" business is actually amazingly easy these days, and way cheaper than you'd imagine.

    3rd. Do you understand that if you did in-fact set it up, you'd spend a butt-load of time on your infrastructure for what is essentially 300-400/month in tax savings?

    If you should so choose to go down this road, you can open a bank account at NatWest or any of the other 1000's+ of banks that offer online banking, debit/credit cards and are located in tax havens. You would then need to set all the documentations to "e-mail only". You might even consider paying for a business address from a 3rd party like Regus. They offer solutions that can give your business a prestigious address and all paper mailings be scanned and forwarded to your e-mail.

    Like was previously mentioned, your only problem is if your ever examined by your domicile countries tax people... But that is a non-existent issue if you are only making 1,2, or even 5K per month. Just don't go buying a new Maserati while getting government assistance.

    Done & Done
     
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  13. I-marketer

    I-marketer Regular Member

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    OP, look here: www.streber.st

    You will find better info there. Ask in comment if need to clarify something, owner of the blog is very nice person.
     
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