Best countries to incorporate for Google Adsense

[yngmind]

What would be the best countries to incorporate for Google Adsense income?

It's a royalty income, and the US charges 30% WTH tax, so the country should have DTT with the US and have somewhat no taxes.

I think it's Georgia and Armenia.

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Business Bank Account for your US LLC Remotely

 

[daniels27]

Yes, we had this discussion a couple ot times:

Or this one, if⁢ you want to live there:

 

[Marzio]

I couldn't have said it better 🙂

 

[yngmind]

What about having a US LLC and being a tax resident in the UAE? I‌ think I will be charged 30% in that case.

 

[daniels27]

The US LLC if tax-transparent is like not having it. If not tax-transparent, you pay profit‍ tax and then withholding tax on dividends.

 

[yngmind]

Yeah, I've read some comments on Telegram, so basically, if you can't provide proof of‌ tax residency in Georgia, they will charge you 30% tax.

What do you think about‍ Armenia?

 

[daniels27]

Yes, basically. But even then if you give them something fake, IRS may still investigate⁠ and then IRS will charge you back throug the payer.

But if they have been⁤ paid, you should be able to claim them back from IRS filing the appropriate forms.⁣

It is a very⁢ good country and also among those without WHT:
https://taxsummaries.pwc.com/united-states/corporate/withholding-taxes
I think the main reason Georgia︀ is discussed here so often is because it is the only country with 0% WHT︁ which does not tax foreign income of individuals.

If you go the way with a︂ company, there are others you can check too Azerbaijan, Belarus, Kyrgyzstan, Moldova, Tajikistan, Turkmenistan, and︃ Uzbekistan. Maybe a company in Pridnestrovie with registration in Moldova would do it too?

Turkmenistan with 8% would be an option.
Kyrgyzstan with 10% would be an optoin.
Barbados with︄ 5% WHT + 5%5% CIT up to 0.5M USD

I think Cyprus may also be︅ an option with 0% WHT. There are some others with 0% WHT, if the amount︆ is low, you may be able to open a company in a country with generous︇ deductions etc. to fall below the taxation threshold. Or you just claim all your first︈ class flights in that company too.

 

[yngmind]

There are some schemes where you can pay literally no tax legally.

 

[daniels27]

Yes, they always exist. You just need to look out for them. I‌ think Cyprus or Georgia should work quite well. There was a couple that was living‍ tax-free on the girl's $3M royalties in Georgia:
No any taxes paid, but︄ they did not like the ploitical vibes. (They could just have gone to the country︅ side or taken the expres bus to Armenia over the weekend.

 

[Houdini]

True, has‍ been discussed a lot of times.

 

[Marzio]

Those are not options⁠ unless you structure things properly.

First thing first you should have a UAE holding company.⁤

The only countries that have 0% WHT on dividends with UAE are:
- Kyrgyzstan 10%⁣ CIT
- Tajikistan 18% CIT
- Turkmenistan 8% CIT

The most interesting option is Kyrgyzstan's high technology park with 0% tax on profits and 0% WHT on dividens to UAE.⁢

Problem: you need to meet the requirements of the tax code of Kyrgyzstan and hire︀ people.

Another company option would be forming a Georgian international company that's taxed 5% CIT︁ and 0% WHT on dividends.

Again, you have to satisfy their requirements and hire somebody︂ in Georgia.

Bottom line: the easiest way is to obtain Georgian tax residency by staying︃ 183 days and receive royalties tax free.

Any ther way require capital investments that imho︄ should only be approached when starting to see some revenue to make sense of the︅ investment.

 

[daniels27]

Ok, thanks. But if doing︃ Kyrgyzstan with UAE, can you do this in UAE free zone or how to prevent︄ taxation there?

 

[yngmind]

The solution is to find a Georgian friend and use him as a nominee. He‌ will be a Georgian tax resident, so his taxes will be minimal. Then, he will‍ just buy crypto and send it to you. It will be a black hat scheme.⁠

The legal one would be just hiring a Georgian director and paying him a salary.⁤

 

[JohnLocke]

How did you get to this, I mean you just⁣ answered your own initial post?

 

[yngmind]

My mind can easily create such schemes after spending 4‍ years on OCT.

 

[Marzio]

AFAIK an UAE‍ company that receives dividends from non resident subsidiaries is exempt from UAE CIT (if participation exemption requirements are met).

Well good luck finding somebody that will buy into⁣ your scheme and that will not cost you more than a white hat solution because⁢ if he is going to help you he surely wouldn't do it for little money︀ (unless is desperate or stupid or wants to screw you)

Georgian director...of what? If for a US LLC you are immediatly making the US LLC︃ tax resident in Georgia and liable to 15% CIT upon distribution.

 

[yngmind]

Of Georgian company

• Dividends paid by a Free Industrial Zone (FIZ) entity: Exempt (0%)⁠
  
• Dividends paid by an entity with International Company Status (ICS): Exempt (0%)
  

CIT for Virtual⁤ Zone Companies OR Free Industrial Zone (FIZ) entity: Exempt (0%)

CIT for International Company Status:⁣ 5% at the time of distribution.

 

[daniels27]

I think we discussed this once, see‌ my first post. It won't work as you cannot get the tax exemption for the‍ dividends.

You can only pay a individual resident.

 

[daniels27]

Ok, then we‍ finally have the gold solution. Kyrgistan company owned by UAE holding. Is it that easy?⁠

 

[Marzio]

Forget abut VZC or FIZ entities, the former is strictly for software‍ companies and AdSense will not cut it (unless you display AdAsense through an app you⁠ develop) and the latter is for industrial businesses.

I never found their list of requirements so i can't tell but surely you⁢ have to be REALLY motivated to form a company there, hire people and go through︀ language barriers.