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Low tax setup for self-pub Amazon royalties? EU citizen options?

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Just answering what you︄ questioned above as well. I don't have a company or any setup. I receive the︅ royalties on my bank account and file in a form each year, only paying social︆ contributions and no income tax.

I don't know what you mean by "should be taxed".︇ If you also live out of royalties you can ask this question to any Romanian︈ accountant and they will give you the same information. I have a friend who's been︉ doing this for five years, and I just submitted my first form a month ago,︊ which I got help from an accountant to fill in. Obviously, accountants here know better︋ than IRS how you're supposed to be taxed in Romania, and I did not pay︌ any income tax since it was already taxed in the US, only social contributions/pension

If you have a SRL or a company, you will pay corporate tax and dividend tax︍ so 20 percent in total, because you don't get a tax credit on those 10︎ percent withheld, plus you have to deal with bureaucracies and headaches. I'm not sure if️ that's what you're referring to.
 
Thank you, you’re best placed to answer and I’m glad you can confirm. So the set︆ up in Romania is not so bad.

Do you pay any VAT on advertising in︇ countries outside of Romania? Just wondering.

Have you︍ found any solution to the VAT on ad spend? I’m thinking it will only be︎ waived if you have a company and a VAT number.

Let me know if you️ have found any solution to this, royalties are paid net of VAT, and VAT is‌ a heavy expense if not reclaimed.

Quick question in regards to this, the LLC will avoid VAT in⁠ the US, but do you know if it will have to pay VAT on UK⁤ advertising spend?
 
I don't pay for advertising. If you are publishing consistently, writing︂ to a market and writing good content, word of mouth is all you need. Just︃ look what E. L. James accomplished 😉

Although I would imagine you'd be paying VAT. I︄ don't see why you shouldn't as a physical person.
 
Fair enough. I found that⁤ advertising only amplified my sales. I'm in the UK with a VAT number so I⁣ do not pay VAT in the USA, however a move to Romania and a switch⁢ of structure would mean VAT has to be paid and that is a fat 20%︀ on spend.

It looks like what has been suggested is the best option so far,︁ a US LLC disregarded entity, and then tax residency in Georgia.
However, I am not︂ too sure that the tax rate will be zero due to the LLC, rather than︃ receiving the royalties directly as an individual.
 
She became‌ famous because she wrote to her market/audience, choosing all the right tropes a woman could‍ possibly want. After that, her readers talked and shared that book with their friends, social⁠ media, etc, so basically spreading through word of mouth.

It was very little advertisement behind⁤ the success of fifty shades of gray, especially taking into consideration it was self-published at⁣ first.

Not many can spend a year or two on something, with little to no⁢ costs, end up a multi-millionaire and never have to lift a finger ever again.

Props to her.
 
Thank you.

In regards to the mandatory social‍ contributions, do you happen to know how this is calculated, or a website you can⁠ point me to?
 
Hi. Sorry to jump in. I was reading this, are we sure that⁠ the 10% WHT tax is not treated like a credit that get considered when calculating⁤ the Romanian taxation? It seem strange that is gonna cancel completely the Romanian taxation. I⁣ could be wrong, but I dont think that is the way DDT treaties works, but⁢ someone else could probably enlighten this matter more than me

I have 3 question connected︀ to the all theme that I would like to share with you guys.

In case︁ of US LLC do not you have to elect it to be treated as a︂ C Corporation to bypass the non-resident withholding tax?

Can you use a 1065 partnership and︃ file a W9 being a United States entity and not a disregarded entity, to avoid︄ WHT taxes? In this case can you deduce marketing expenses?

Can anyone explain better the︅ set-up with the UK company?
 
I'm just coming back to this, just to confirm with you, because I am still︂ interested in this set up. Why does the IRS treaty with Romania say the royalties︃ can be taxed in both.

I need to be fully confident Romania wouldn't want to︄ tax me as well. It does say it's allowed to be taxed in both countries︅ in the agreement.

Have you confirmed this with an accountant there?
 
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