Best countries to incorporate for Google Adsense

[yngmind]

https://www.oecd.org/en/topics/sub-issues/preventing-tax-treaty-abuse.html

Interesting stuff to read

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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.
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Business Bank Account for your US LLC Remotely

 

[Offct]

ilke said:
When you're earning from AdSense, you are unlikely to be paid by the US entity unless you are registered in the US or in general offshore jurisdictions, like the Carribean.

If you are in the EU, you will be invoicing Google Ireland, and covering VAT via reverse charge.

If you are in MENA/APAC, you will be invoicing Google Singapore.

See: https://support.google.com/adsense/answer/1322028?hl=en

Also, AFAIK, it's royalty income solely if you are making use of YouTube AdSense, as you are being rewarded for video watches. If you use the general AdSense for Web or AdMob for Apps, it will be classed as business income.
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Thanks for the link, I was actually not aware of the fact, that only Youtube income is considered a royalty. Btw, MENA also belongs to Google Ireland and not Singapore.

 

[Dmitry K]

High Tech Park in Kyrgyzstan will probably require the most income coming from software purchases, not ads revenue. You can check with the local lawyers. Mine did not suggest HTP in a similar case. Without park KG taxes will be 4% CIT + 10% on dividends to a foreign person. Unless you can benefit from it by subtracting those 10% from the dividends tax in your home country like I do or manage to get into High Tech Park, you can get a better rate on Cyprus (12% CIT + 0% on divs).
With an average salary in Bishkek being around 350 USD, maintaining a presence or outsourcing some tasks you'd rather not do yourself will be cheap enough.

 

[bountymounty]

Dmitry K said:
High Tech Park in Kyrgyzstan
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what is required for a setup there? and do you can sum up roughly the costs?

 

[Dmitry K]

bountymounty said:
what is required for a setup there? and do you can sum up roughly the costs?
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High-Tech Park has a site https://htp.kg/. I cannot claim any first-hand knowledge of that one.

Setting up a regular company in the capital Bishkek is easy. I went through the local lawyers since they save time. The company set up was remote but I had to fly there to open business and personal bank accounts. 3 days was enough to open both in 3 different banks (quite a result after what it takes in UAE and on Cyprus). The cost of lawyers help was 850 USD and it was a rather expensive company by local standards.

 

[Marzio]

Dmitry K said:
High Tech Park in Kyrgyzstan will probably require the most income coming from software purchases, not ads revenue.
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If your app is free to play with monetization that comes from ads i don't see why they wouldn't allow it.

Dmitry K said:
you can get a better rate on Cyprus (12% CIT + 0% on divs).
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Maybe you could get a better rate but what you get also is LOB clause in US-CY which you won't find in the US-USSR treaty.

 

[kekmaw]

Dmitry K said:
High Tech Park in Kyrgyzstan will probably require the most income coming from software purchases, not ads revenue. You can check with the local lawyers. Mine did not suggest HTP in a similar case. Without park KG taxes will be 4% CIT + 10% on dividends to a foreign person. Unless you can benefit from it by subtracting those 10% from the dividends tax in your home country like I do or manage to get into High Tech Park, you can get a better rate on Cyprus (12% CIT + 0% on divs).
With an average salary in Bishkek being around 350 USD, maintaining a presence or outsourcing some tasks you'd rather not do yourself will be cheap enough.
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4%?

Isn't it 10% or are there other incentives?

 

[daniels27]

kekmaw said:
4%?

Isn't it 10% or are there other incentives?
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Yes 10%.
https://taxsummaries.pwc.com/kyrgyzstan/corporate/taxes-on-corporate-income

 

[daniels27]

But e-commerce is only taxed at 2%
https://taxsummaries.pwc.com/kyrgyzstan/corporate/taxes-on-corporate-income
Maybe a good place for Amazon sellers?

 

[kekmaw]

daniels27 said:
But e-commerce is only taxed at 2%
https://taxsummaries.pwc.com/kyrgyzstan/corporate/taxes-on-corporate-income
Maybe a good place for Amazon sellers?
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2% of revenue though

Usually margins in Ecom are rather slim so that 2% would be a significant amount unless I'm missing something.

 

[daniels27]

kekmaw said:
2% of revenue though

Usually margins in Ecom are rather slim so that 2% would be a significant amount unless I'm missing something.
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Depends if the business. For LVMH, it would be a good deal.