I have always thought that those countries don't tax foreign sourced profits but this only applies to passive income such as renting out your apartment , if you run a foreign company from such a territorial you have to pay tax on profits from that company , correct ?
Misconception about Countries with territorial tax system ...
- Thread starter Piano
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if you run a offshore company from territorial tax system country, you tax the company where it is controlled from, so it no longer is outside of the territory. in other words, you are removing the advantage of this system.
if you work in TTS country for foreign company, you should not be taxed there since the income is sourced from outside of the country, even though you are performing work in the country.
if anyone disagrees, i am listening. i am no authority and eager to learn 😀
btw this is a setup i am currently having as a goal for the next year. Cyprus company with Malaysian residence for trading? i am not sure it will work as i imagine but i will know only once i go there in person and talk to accountants and lawyers in respective jurisdictions.
if you work in TTS country for foreign company, you should not be taxed there since the income is sourced from outside of the country, even though you are performing work in the country.
if anyone disagrees, i am listening. i am no authority and eager to learn 😀
btw this is a setup i am currently having as a goal for the next year. Cyprus company with Malaysian residence for trading? i am not sure it will work as i imagine but i will know only once i go there in person and talk to accountants and lawyers in respective jurisdictions.
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