How to get paid a Tax Free Salary from your own company?

[BerlusconiSchmidt]

I work online, mostly ecommerce, and looking to re-incorporate elsewhere and move to a country that does not tax foreign income.
For that reason, I will have to pay myself a salary from the foreign company, however, the only locations of companies that I can open are Singapore, Ireland and Hong Kong because of the relatively low tax
and because Stripe causes issues when opening an account with a UAE company, moreover, Shopify payments, Wise, etc... are not available for UAE companies, and I need them.

How can I get a Tax Free Salary from a Singaporean, HK or Irish company without living there? Everywhere I look I read that the Salary witholding tax is required even for non-resident directors (Wtf...)
any solutions to this?

 

[Marzio]

BerlusconiSchmidt said:
move to a country that does not tax foreign income
Click to expand...

I'm 99% sure your definition of "foreign income" will get you into trouble.

Foreign income isn't income that comes from outside the country where you are tax resident, it's income that comes from outside the country where you are tax resident AND that didn't arise by you working in the country.

Instead of foreign income call it "investor income"

Having that said there are some countries that simply don't care and will allow you to work from within the country and don't tax your offshore income.

Now, based on the fact that you need Shopify Payments thare are a couple of countries that are suitable for your needs:
- US
- UK

Both could potentially be tax free if managed from the right countries.

 

[GPT]

With tax free you also mean free of social contributions? For that matter you need to live in a country which doesn't have social contributions.

Your employer is obliged to pay where you reside except for the EU when you work in 2 or more member states. Look up the E101 (old) / A1 (new) laws. Based on that your EU employer can pay socials in land where they are incorporated/ headquartered.

 

[CyprusLawyer101]

I can take care of this

 

[Alexmorgan]

Live in Bahrain or Oman there is no taxes and they wont consider your income of your company taxable at all

Dubai is gone even if you are an EU man and you have a company in Singapore or HK or US and you got income from Africa or Asia or South America still they will ask you for corporate income tax so exclude UAE from this

 

[jafo]

Alexmorgan said:
Live in Bahrain or Oman there is no taxes and they wont consider your income of your company taxable at all

Dubai is gone even if you are an EU man and you have a company in Singapore or HK or US and you got income from Africa or Asia or South America still they will ask you for corporate income tax so exclude UAE from this
Click to expand...

You are developing a laser focus, my friend! I'm impressed. You are imparting excellent, focused knowledge!
😎

 

[EliasIT]

Marzio said:
Foreign income isn't income that comes from outside the country where you are tax resident, it's income that comes from outside the country where you are tax resident AND that didn't arise by you working in the country.
Click to expand...

Very good point and something most readers should note. Important to pay attention to the last words "that didn't arise by you working in the country." which most overlook.

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[TheCryptoAnt]

Just dont declare it 😎

Follow me for more tax-saving advice 😉

 

[Marzio]

TheCryptoAnt said:
Just dont declare it 😎

Follow me for more tax-saving advice 😉
Click to expand...

TheCyrptoAnt = Andrew Tate 😛

 

[kekmaw]

Alexmorgan said:
Live in Bahrain or Oman there is no taxes and they wont consider your income of your company taxable at all

Dubai is gone even if you are an EU man and you have a company in Singapore or HK or US and you got income from Africa or Asia or South America still they will ask you for corporate income tax so exclude UAE from this
Click to expand...

In the case of Oman, they have corporate tax so wouldn't having a PE there make it subject to corporate tax?

 

[Alexmorgan]

kekmaw said:
In the case of Oman, they have corporate tax so wouldn't having a PE there make it subject to corporate tax?
Click to expand...

They have corporate tax if you have a company in it but if you have outside and you live there no one will tax you legally

Besides in free zone areas there is no taxes on your foreign income

The only problem is the process to incorporate your company and to get the residency is really a hard work to do not fast like US and Dubai or even the upcoming big economic player in the region which is Saudi Arabia

 

[jafo]

Marzio said:
Foreign income isn't income that comes from outside the country where you are tax resident, it's income that comes from outside the country where you are tax resident AND that didn't arise by you working in the country.

Instead of foreign income call it "investor income"
Click to expand...

#Bingo!

 

[kekmaw]

Alexmorgan said:
They have corporate tax if you have a company in it but if you have outside and you live there no one will tax you legally

Besides in free zone areas there is no taxes on your foreign income

The only problem is the process to incorporate your company and to get the residency is really a hard work to do not fast like US and Dubai or even the upcoming big economic player in the region which is Saudi Arabia
Click to expand...

Sounds like a great place in that case to have your manager of a US LLC there while you reside in the UAE for lifestyle.

 

[BerlusconiSchmidt]

Marzio said:
I'm 99% sure your definition of "foreign income" will get you into trouble.

Foreign income isn't income that comes from outside the country where you are tax resident, it's income that comes from outside the country where you are tax resident AND that didn't arise by you working in the country.

Instead of foreign income call it "investor income"

Having that said there are some countries that simply don't care and will allow you to work from within the country and don't tax your offshore income.

Now, based on the fact that you need Shopify Payments thare are a couple of countries that are suitable for your needs:
- US
- UK

Both could potentially be tax free if managed from the right countries.
Click to expand...

Alexmorgan said:
Live in Bahrain or Oman there is no taxes and they wont consider your income of your company taxable at all

Dubai is gone even if you are an EU man and you have a company in Singapore or HK or US and you got income from Africa or Asia or South America still they will ask you for corporate income tax so exclude UAE from this
Click to expand...

I can't live in any of those countries, I was looking at a better quality lifestyle honestly, and nicer weather. To be honest Oman and Bahrain aren't the best place in the world other than for Taxes. Dubai is okay, but unlivable 6 months a year.

 

[JohnLocke]

Then I would have a look at this thread
https://www.offshorecorptalk.com/threads/stay-in-dubai-or-move-to-switzerland.44720/
Stay 6 months in Dubai and 6 months in Switzerland - could be a possibly solution for you.

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[yngmind]

How much are you making?

Get a US LLC, a good accountant, take owner's drawings, have lots of business expenses, buy flights with your business card, pay for some personal expenses that can look like business expenses, and pay 0% CT in UAE or a low 9% on your profits, which your accountant will optimize.

Why do you need a salary in the first place? It's taxed everywhere.

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I'm not a tax advisor, so please don't consider my posts here as tax advice. Always seek a professional opinion.
___
Business Bank Account for your US LLC Remotely

 

[Cloudbanck]

yngmind said:
How much are you making?

Get a US LLC, a good accountant, take owner's drawings, have lots of business expenses, buy flights with your business card, pay for some personal expenses that can look like business expenses, and pay 0% CT in UAE or a low 9% on your profits, which your accountant will optimize.

Why do you need a salary in the first place? It's taxed everywhere.
Click to expand...

Salary isn't taxed in the UAE , so in the case above one can also, to reduce profit, take a high but reasonable salary to not fall under GAAR rules.

 

[CyprusLawyer101]

This what i am structuring for a client as we speak:
Singapore company;
CY non dom, salary 100% exempt under 90 days rule;
Employmemt contract structuring necessary in Singapore;
Expect to file a tax rulling request in Cyprus;

 

[yngmind]

Cloudbanck said:
Salary isn't taxed in the UAE , so in the case above one can also, to reduce profit, take a high but reasonable salary to not fall under GAAR rules.
Click to expand...

Hmm.

What if your UAE company will own a US company

UAE company is a holding that receives money from US company, and you get your salary from the UAE company.

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Business Bank Account for your US LLC Remotely

 

[Cloudbanck]

You can do that.
Or just pay a salary directly from the US LLC. Then it is probably treated as a distribution in the US filing, and a salary in the UAE filing. How to do this on the UAE side is not clear though, but Im guessing that what is a distribution on the US side, can be split into salary and dividends on the UAE side.