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If I am a US Citizen and have a Seychelles or UK Ltd. with an offshore merchant account...

Discussion in 'Business & Tax Advice' started by daveslaine, Jun 6, 2016.

  1. daveslaine

    daveslaine Newbie

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    How do the taxes work?

    I have both a Seychelles company and a UK company and am looking to process with Instabill.

    Instabill has offshore banks they work with and I will be using Auth.net hopefully if I process using the UK company...

    But in this case, how and where would I pay taxes?

    I mean if you are US based usually your merchant provider will send tax information to the IRS, but if you are offshore based but a US citizen, what happens then?
     
  2. burnett4congress

    burnett4congress Regular Member

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    Like all tax answers, it depends.

    You'll have to pay whatever corporate taxes in the jurisdiction the entity is located.

    If any money flows to you personally, you'll have to declare that income and pay the tax on it less any foreign tax credit. Or if you are out of the US for more than 330 days, you'll have a foreign earned income exclusion of about $100k.

    On top of that, you'll also have an FBAR reporting requirement if the sum of your foreign assets goes above $10k at any point during the year. If it goes above $50k you'll also have an IRS reporting requirement on top of the FBAR.
     
  3. THUNDERELVI

    THUNDERELVI Elite Member

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    First of all, you posted on the wrong forum. Second, I really think you should ask a professional when it comes to tax and/or legal issues. There may be a few people here who know such stuff pretty well, but the majority don't and tax laws vary by country.
     
  4. RuthSam

    RuthSam Jr. VIP Jr. VIP Premium Member

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    They will still have to send your information to the IRS that's international law since 2 years! It's comes into full force from now and during the next years. As a US citizen you are pretty much limited to what you can do without to pay tax... wonder when it will be the same for people in Europe :eek:

    Anyway, you need to speak with a tax consultant or accountant they may be able to help you to reduce the tax to be paid in the US at least.