how much tax do you have to pay in your country?

[Kak]

Good write up. You forget consumption taxes like the gas taxes and sales taxes, compliance taxes like the ones to keep your entities open, property taxes and governmental Ponzi schemes like social security and Medicare.

I really end up spending at least half of everything I make on taxes when it's all said and done and I'm in a very business friendly state.

To not get thrown in jail for tax evasion I have to hire a top tier tax guy to make sure I did everything right. So that's another tax in a way.

On top of all of this, they even tax my time because I have to spend so much time making sure everything is in order and working with my tax guy.

When it is all said and done.... You have worked until June or July for the government every single year. Then we have the communists in our country who like to camp out with signs and argue that business owners need to pay their fair share of taxes... Keep in mind that these worthless psychopathic imbeciles probably paid zero dollars in taxes the prior year and most of them are probably getting hand outs from the government... Financed by the BUSINESS OWNERS! If I could describe our tax situation in the United States I would call it a conflict of interest.

 

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[theag]

Too much.

http://www.kpmg.com/global/en/servi.../pages/individual-income-tax-rates-table.aspx
http://www.kpmg.com/global/en/servi...esources/pages/corporate-tax-rates-table.aspx
http://en.wikipedia.org/wiki/List_of_countries_by_tax_rates

 

[GlobalWealth]

Basically 0%.

My businesses are in zero tax jurisdictions. I am not a tax resident where I live. And as an American I take advantage of the FEIE (foreign earned income exclusion) for about $150k/y. All other income is deferred offshore.

 

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[GlobalWealth]

Portugal:
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23% VAT
23% Corporate Tax
48% personal income tax ( >80k€ )

Because I'm under 200k/annual sales I choose to be a sole proprietorship with simplified accounting, meaning that 15% of my sales are considered profit and then that is taxed as personal income. As my margins are way better than 15%, I'm better of this way, don't need an official accountant. On the other side all liabilities will come under my name, so it is riskier on that part.

Portugal has an interesting option for residency. You can apply for the NHR (non-habitual resident) visa and if your income is derived from dividends, you pay no tax in Portugal.

The best way to do this is to set up an offshore company (it is a bit more complicated as you need to be in the right country, but it is doable), and pay yourself only in dividends from the profit of the company.

Voila, no corporate tax from offshore jurisdiction and no personal tax since it is paid in dividends.

 

[Trivium iz rC]

In the US It depends on which state you incorporate in & wether you're a S-Corp or C-Corp.

C-Corp: 0%-35% Federal + State Corp Tax Rate + Obama Care Tax
S-Corp: 0%-20% Federal + State Corp Tax Rate + Obama Care Tax

Personal Income Tax:

Salary: 0%-39.6% Federal + State Income Tax (High Earners Also Pay Obama Care Tax)

Long Term Capital Gains/Dividends/Interest : 0%-20% Federal + State Corp Tax Rate + Obama Care Tax.

I always tell people incorporate in a state with no STATE corporate tax & have your residency in a state with no income tax. Keep salary modest and take the rest in LT Dividends or Distributions.

 

[Kak]

Ok, so you are saying if you make 100k you blow 82.5k on stuff you can call business expenses. Then your salary at 17.5 is the last expense to the business. That zeros out the business. Then at 17.5 you don't pay anything on a personal level...

 

[Napoolion]

OH wow, I am just doing my business yearly report and it is not so bad then now that I think about it here...

Estonia in numbers:
0% on profit retained in company; flat 20% when earned profit is distributed to shareholders
Payroll tax: 33%

So if you invest the money or write it to costs, it's 0%. If you want to pay yourself wage, it's 33%.

It's 20% if you take money with dividends.


You can become an e-resident here and create a company without really visiting the country shortly. It just came out: https://e-estonia.com/e-residents/about/

 

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[Trivium iz rC]

^ Agreed forgot payroll taxes, compliance & consumption taxes.

 

[theag]

How can you call everything you do a business expense? You obviously can't write off money you put in the bank... You would need to be spending every dime that comes in to even start to make this work.

Then again I'm not Canadian... Maybe I should be.

He must be living below minimum wage (see other posts for reference). I'd rather pay taxes than do that lol.

There are no taxes under a certain income level

 

[DeletedUser394]

He must be living below minimum wage (see other posts for reference). I'd rather pay taxes than do that lol.

In the eyes of the government, and on paper yes.

In reality no, not even close.

Sticking my middle finger to the dear ol' government.

 

[theag]

My question is how do you write off money that you put away?

Thats my question too. Also you must have paid near normal tax rates on your buyout money that you used to fund your current stocks etc.

So it seems like you are basing your tax calculations on already taxed income that you now invest and pay taxes on capital gains while the rest of us are actually talking about actual business revenue and how to get money out of the business at the lowest tax rate.

Maybe I'm wrong.

 

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[Kak]

I'm just confused now. I hate Canada.

 

[GlobalWealth]

The end goal is to live 180 + 1 days in a foreign country. That too is using a loophole available to the anyone (but in reality only those with the means/wealth) to 'skirt' the lines of not owing any tax in any jurisdiction.

Be careful here. This varies based on country. In some countries (ie. the US) you become a tax resident after 122 days in the country.

 

[GlobalWealth]

OH wow, I am just doing my business yearly report and it is not so bad then now that I think about it here...

Estonia in numbers:
0% on profit retained in company; flat 20% when earned profit is distributed to shareholders
Payroll tax: 33%

So if you invest the money or write it to costs, it's 0%. If you want to pay yourself wage, it's 33%.

It's 20% if you take money with dividends.


You can become an e-resident here and create a company without really visiting the country shortly. It just came out: https://e-estonia.com/e-residents/about/

I will be in Tallinn next Tuesday doing the e-residency.

 

[jazb]

F*ck it, Im moving to necker island

 

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[mosdef]

Too much.

http://www.kpmg.com/global/en/servi.../pages/individual-income-tax-rates-table.aspx
http://www.kpmg.com/global/en/servi...esources/pages/corporate-tax-rates-table.aspx
http://en.wikipedia.org/wiki/List_of_countries_by_tax_rates

its crazy really, so i can make 100 000 each month and i have to give away 50k.... its crazy

 

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[DeletedUser394]

Where are you located/residing if you don't mind me asking? And could you describe some of the loopholes that you are using?

Canada.

There are no taxes under a certain income level, so I artificially lower my income by writing off EVERYTHING. Everything that can be a business expense becomes a business expense.

Capital gains tax is calculated at your income tax level, but only 50% of your total capital gains are taxable. Because I don't pay income tax, I have no income tax percentage, so I only pay 7.5%.

Corporate tax is only 14% because I utilize the small business deductions for companies making under $500,000/yr. My company artificially brings in a low amount of revenue because I write everything off. I'm operating near $0 or even at a loss, not sure right now.

It's more complicated than that, but I pay my accountant to figure it out.

 

[JamesSJ]

Where is that?



And for me at the moment:

Income tax: 0% (I'm a sailer, no resident of any country, even though I am a citizen of one)
Corporate tax: once I finally get started 0% as it's not registered anywhere...you need to be a resident of a country to be able to register a company...I'm not a resident so I can't register a company.

For the long run I'm looking to register my company though in a nice area where:
1) it's a safe/reliable place to register my online business
2) No worldwide income taxes.
etc etc etc.

Sorry i should have said - Hong Kong

 

[Kak]

Canada.

There are no taxes under a certain income level, so I artificially lower my income by writing off EVERYTHING. Everything that can be a business expense becomes a business expense.

Capital gains tax is calculated at your income tax level, but only 50% of your total capital gains are taxable. Because I don't pay income tax, I have no income tax percentage, so I only pay 7.5%.

Corporate tax is only 14% because I utilize the small business deductions for companies making under $500,000/yr. My company artificially brings in a low amount of revenue because I write everything off. I'm operating near $0 or even at a loss, not sure right now.

It's more complicated than that, but I pay my accountant to figure it out.

How can you call everything you do a business expense? You obviously can't write off money you put in the bank... You would need to be spending every dime that comes in to even start to make this work.

Then again I'm not Canadian... Maybe I should be.

 

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[Kak]

He must be living below minimum wage (see other posts for reference). I'd rather pay taxes than do that lol.

Me too and I hate taxes.

 

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[theag]

My rent is a business expense (home 'office'), my transportation, a good portion of meals away from home, all domestic and international travel, etc

Those are all good but I hope you have that bulletproofed. Sounds like this could bite you in the a$$ in an audit. At least in Germany its VERY VERY VERY hard to get these approved as business expenses (travel is easiest of course, if you travel to business events/meetings/due diligence on investments etc).

 

[theag]

How can you pay corporate tax when your business makes no profits? I though that was the point of classifiying as much as possible as business expenses. You only pay corporate tax on profits, not on revenue. At least here.

I'm so confused

 

[Kak]

If taxes were paid on revenue instead of profit it would screw up everything so that isn't the case.

 

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[mosdef]

only positive with taxes in sweden is that you can go to university, medical care and when you get old you get get some money to live on.

socialism right?=

 

[Ikke]

Regarding not having a profit in your business. Here in the Netherlands you can set a reserve in your busines. Which is basically a piggybank on your balance where you store the money untaxed for future spending.

 

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[mosdef]

So how many % tax to you guys have to pay in taxes?

In sweden we pay almost 55% if you run a company and 35% if employed!

 

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[Luffy]

So how many % tax to you guys have to pay in taxes?

In sweden we pay almost 55% if you run a company and 35% if employed!

Personally the tax cut is done automatically when I get my salary and I only lose around 2k sek. I live in sweden and have a part time job. Also my tax returns are as much as I get in salary before the tax cut ironically.

 

[Ikke]

Maximum income tax rate is 52%.
1.2% (/year) on all personal capital above 21k
21% sales tax on all purchases (deductible for businesses)

LCC type companies have 20% revenue tax upto €200k and 25% on everything above €200k.

Furthermore you have lots of taxes hidden so that employed people won't notice them directly.

 

[DeletedUser394]

-2% (not a typo.. minus two percent) personal income tax

0% sales tax (provincial)
5% VAT

7.5% capital gains tax (50% of 15%)

14% corporate tax


These are the rates that I get (legally) for using all loopholes available to me. At the end of the year the gov pays me back more money than I paid in taxes generally.

 

[James Turchetto]

If I made £100,000 Sterling this year April 2015 - April 2016 - £29,403.00 in Taxes and if I wanted to make National Insurance Contributions : £5,231.28
Net Wage£65,365.72.

If you make £50K Net Wage of £36,365.72

UAE is my choice of destination long term the £35K loss a year on Tax can simply cover my rental costs & expenses over there as an example... if you want to keep going higher up the scale. If you want to misbehave over there think twice about moving though, save your fun for a trip or two out of the country

£1 million

Net = £540,625.72

Simply moving abroad to the UAE means £1 million earnt is 2 years for someone else working in the UK

Of course there are lots of tax loopholes but you can avoid the whole process I guess if you're an internet based business and your location could be anywhere.


Should I be so lucky I'm going where I can fill up my financial reserves for the long term, no flashy excess living either, not too materialistic in that sense thankfully. Although with the money saved on Tax I guess a nice car wouldn't hurt

 

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