I am happy to talk about my situation in a private group now !
So, as i said in public forum i am the owner of a Estonian e residency card which allow to create a company online. I had a problem with the Estonian banks but that was because i chose the wrong bank, so now i can try again with SEB or swedbank
Here are why i want to push hard. There are many benefits for us with the Estonian company:
Now, there is a 20% of distributed profits & 0% on corporate tax. It means that as long as you don't distribute money to shareholders you don't pay ANYTHING and have to pay nothing.
Interest ”“ Estonia does not levy withholding tax on interest other than interest derived by a nonresident investor from an Estonian contractual fund or other pools of assets. This exception applies to contractual funds or other pools of assets if more than 50% of the assets at the time the interest is paid or at any time during the previous two years, consist, directly or indirectly, of Estonian-situs real property and the nonresident held at least 10% in the fund/pool at the time of payment.
Despite the exemption from withholding tax, interest payments may be subject to corporate taxation at the level of the company making the payments under transfer pricing rules.
Royalties ”“ A 10% withholding tax applies to royalties paid to nonresidents. Royalty payments to qualifying EU or Swiss-resident companies may be exempt if they meet the requirements for application of the EU interest and royalties directive. The withholding tax exemption will not apply to any part of the royalties that exceeds the value of similar transactions carried out between unrelated persons. yes it is not a cyprus, but if you pay 10% to an offshore company that should be interesting. Nevertheless, i don't know if it would not be too obvious for the tax authorities in this case. Once again, you do everything yourself through their portal you don't need anyone to do it for you.
Technical service fees ”“ A 10% withholding tax applies if technical services are rendered in Estonia. Withholding tax is not applicable if the services are performed outside Estonia or if there is a tax treaty between Estonia and the service provider's country of tax residence that provides for an exemption.
what do you think?
So, as i said in public forum i am the owner of a Estonian e residency card which allow to create a company online. I had a problem with the Estonian banks but that was because i chose the wrong bank, so now i can try again with SEB or swedbank
Here are why i want to push hard. There are many benefits for us with the Estonian company:
- You don't need an accountant, you submit your bookkeeping yourself on their website thanks to your E residency card from all over the world. You don't need a local accountant who would have access to all your tax planning techniques in your bookkeeping. This reduces safety risks.
- You don't need a power of attorney because you can do everything online from the website.
- Audit are mandatory starting at 2,000,000 euros.
Now, there is a 20% of distributed profits & 0% on corporate tax. It means that as long as you don't distribute money to shareholders you don't pay ANYTHING and have to pay nothing.
Interest ”“ Estonia does not levy withholding tax on interest other than interest derived by a nonresident investor from an Estonian contractual fund or other pools of assets. This exception applies to contractual funds or other pools of assets if more than 50% of the assets at the time the interest is paid or at any time during the previous two years, consist, directly or indirectly, of Estonian-situs real property and the nonresident held at least 10% in the fund/pool at the time of payment.
Despite the exemption from withholding tax, interest payments may be subject to corporate taxation at the level of the company making the payments under transfer pricing rules.
Royalties ”“ A 10% withholding tax applies to royalties paid to nonresidents. Royalty payments to qualifying EU or Swiss-resident companies may be exempt if they meet the requirements for application of the EU interest and royalties directive. The withholding tax exemption will not apply to any part of the royalties that exceeds the value of similar transactions carried out between unrelated persons. yes it is not a cyprus, but if you pay 10% to an offshore company that should be interesting. Nevertheless, i don't know if it would not be too obvious for the tax authorities in this case. Once again, you do everything yourself through their portal you don't need anyone to do it for you.
Technical service fees ”“ A 10% withholding tax applies if technical services are rendered in Estonia. Withholding tax is not applicable if the services are performed outside Estonia or if there is a tax treaty between Estonia and the service provider's country of tax residence that provides for an exemption.
what do you think?
