In the thread "Where to relocate to not pay capital gains tax and live cheap" it was mentioned that some countries "don't tax foreign income" in the context of owning a business registered elsewhere while living in the country that "doesn't tax foreign income", i.e. a territorial tax country.
I'm thinking there are significant differences between territorial tax systems, both in what the law says and how the law is (or isn't) enforced, and that it would be useful to compile a list of these details for territorial countries (and we can also include zero tax countries as these are also not always straightforward). This thread is to compile such a list with the experiences/knowledge of the people in this forum.
The details that would be interesting to know:
If you have a foreign business, and run it via your laptop from country X that supposedly doesnt tax foreign income. Does it a) legally count as local income since you effectively manage the company from country X, even if you have no office or employees in country X. And b) even if it legally/technically counts as local income, is it enforced? Also, c) can you make it count as foreign income by having employees/offices in some other country, or even just by having a residence permit or tax certificate somewhere else.
A list of territorial and zero tax countries can be found on wikipedia here, International taxation - Wikipedia. Feel free to add further details on any of the countries listed by wikipedia in this thread!
I'm thinking there are significant differences between territorial tax systems, both in what the law says and how the law is (or isn't) enforced, and that it would be useful to compile a list of these details for territorial countries (and we can also include zero tax countries as these are also not always straightforward). This thread is to compile such a list with the experiences/knowledge of the people in this forum.
The details that would be interesting to know:
If you have a foreign business, and run it via your laptop from country X that supposedly doesnt tax foreign income. Does it a) legally count as local income since you effectively manage the company from country X, even if you have no office or employees in country X. And b) even if it legally/technically counts as local income, is it enforced? Also, c) can you make it count as foreign income by having employees/offices in some other country, or even just by having a residence permit or tax certificate somewhere else.
A list of territorial and zero tax countries can be found on wikipedia here, International taxation - Wikipedia. Feel free to add further details on any of the countries listed by wikipedia in this thread!
