Best country for lowest tax - Online SaaS Business
- Thread starter konfuci
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Georgia, USA or Georgia in asia. Gruzia? If you have low personal income tax in your country, use US LLC.
Georgia in Europe!
My clients are mostly from US, I prefer European LLC for tax reasons + I do not have low personal income tax.
Idk, that like it, also from technical wise, its not that advanced.
Anyway, do you know difference between Malta and Cyprus entities?
My clients are mostly from US, I prefer European LLC for tax reasons + I do not have low personal income tax.
Idk, that like it, also from technical wise, its not that advanced.
Anyway, do you know difference between Malta and Cyprus entities?
Georgia is on a crossroad between Asia and Europe, to be precise from a location perspective yes its more Asia than Europe, from cultural side we are more European, so I would call it Europe.
But its not related to the thread.
If you have experience with Cyprus or Malta entities would like to know more about their benefits for digital businesses, from a tax perspective.
But its not related to the thread.
If you have experience with Cyprus or Malta entities would like to know more about their benefits for digital businesses, from a tax perspective.
US is also fine for me.
I have Estonian e-residency, Estonia and Georgia has same tax regime, so I will have to pay 20% dividend tax anyway, which I think can be decreased by Malta entity or any other...
I have 2 main goals:
1. Get normal payment system (I guess from any country Malta/Cyprus/Estonia/US ... I will get it)
2. Minimize tax costs (All operations will be done in Georgia, I need entity︀ in other country to get payment, take dividend and pay Georgian entity for service)
Thank you!
I have Estonian e-residency, Estonia and Georgia has same tax regime, so I will have to pay 20% dividend tax anyway, which I think can be decreased by Malta entity or any other...
I have 2 main goals:
1. Get normal payment system (I guess from any country Malta/Cyprus/Estonia/US ... I will get it)
2. Minimize tax costs (All operations will be done in Georgia, I need entity︀ in other country to get payment, take dividend and pay Georgian entity for service)
Thank you!
You are lucky you live in Georgia
I think
1- US LLC will work great in your case
2- you won't pay any taxes not︀ in the US nor in your country(Georgia)
Why?
US Perspective: US LLC is a︁ pass-through entity and you won't pay any taxes as NRA
but you still have to︂ file 5472 & 1120 forms every year
Georgia Perspective: the Tax System in Georgia︃ is territorial, Which means
that Georgia will tax its residents on Georgian-sourced income only.
Good luck mate.
I think
1- US LLC will work great in your case
2- you won't pay any taxes not︀ in the US nor in your country(Georgia)
Why?
US Perspective: US LLC is a︁ pass-through entity and you won't pay any taxes as NRA
but you still have to︂ file 5472 & 1120 forms every year
Georgia Perspective: the Tax System in Georgia︃ is territorial, Which means
that Georgia will tax its residents on Georgian-sourced income only.
Good luck mate.
that's what a territorial tax system stands for, isn't it ?
Georgia is the only country in Europe that does not tax worldwide income. A few Latin American countries operate on a territorial system , such as Panama and Nicaragua, as well as some Asian countries such as Malaysia and Hong Kong.
P.S @konfuci needs to consult with a Locale CPA to set up the right Scheme
Georgia is the only country in Europe that does not tax worldwide income. A few Latin American countries operate on a territorial system , such as Panama and Nicaragua, as well as some Asian countries such as Malaysia and Hong Kong.
P.S @konfuci needs to consult with a Locale CPA to set up the right Scheme
I am currently doing business in Georgia and I know for a fact that what you are saying is not true. First of all the permanent establishment rules︀ are very strict and the US LLC would quickly become tax resident here if the︁ company was managed from Georgia: Tax Liability For Foreign Business Owners Living In Georgia |︂
Secondly, regarding Territorial taxation, this is something that is commonly misunderstood. It's rare in territorial︃ tax countries that income from work being performed within the country would be considered foreign-sourced.︄ The same holds true for Georgia. Mostly this only works for passive income.
Georgia would still be an attractive︈ choice if you did it right. I would recommend either the Virtual Zone LLC or︉ Individual entrepreneur with small business status.
- With the Virtual zone LLC you have the︊ benefits of having an LLC and you only pay 5% on dividends. This is the︋ one I'm using, however, since April the government has cracked down hard on businesses with︌ no local presence and revoking licenses leading to huge fines for companies who clearly follow︍ the Georgian tax code. It is advised that you maintain office, employees, etc. for this︎ structure to work now.
- With the Individual entrepreneur you have a sole proprietorship where️ you pay 1% tax on your revenue.
Secondly, regarding Territorial taxation, this is something that is commonly misunderstood. It's rare in territorial︃ tax countries that income from work being performed within the country would be considered foreign-sourced.︄ The same holds true for Georgia. Mostly this only works for passive income.
Georgia would still be an attractive︈ choice if you did it right. I would recommend either the Virtual Zone LLC or︉ Individual entrepreneur with small business status.
- With the Virtual zone LLC you have the︊ benefits of having an LLC and you only pay 5% on dividends. This is the︋ one I'm using, however, since April the government has cracked down hard on businesses with︌ no local presence and revoking licenses leading to huge fines for companies who clearly follow︍ the Georgian tax code. It is advised that you maintain office, employees, etc. for this︎ structure to work now.
- With the Individual entrepreneur you have a sole proprietorship where️ you pay 1% tax on your revenue.
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