NEW Global Corporation Tax

[billybobs]

Can anyone please clarify the 2 scenarios below and how this new global corporation tax would effect me any different to now -

1. Im a UK resident with UK company and sell goods and services worldwide (USA, UK, Europe etc)

2. Im a UAE resident with UAE company and sell goods and services worldwide (USA, UK, Europe etc)

Thankyou

 

[Sols]

You're going to have to book an appointment with a fortune teller if you want‌ firm answers. Nothing is for certain yet. No international treaties and laws have been written,‍ voted on, and put into effect.

 

[vvvictor]

they only know how to raise taxes, impressive It's really hard to understand what's going‌ to happen. Surely not everyone will join

 

[Martin Everson]

Back in the day that‌ is what they were saying about FATCA and CRS.....and......😕

 

[vvvictor]

I hope for this but no one know. Maybe AMZ,‍ FB, GOOG will take some action against. I hope this tax will help governs to⁠ reduce all others tax on people, if not, is a scam

 

[carz]

Any opinions if/how this will effect UAE property market?

 

[Martin Everson]

UAE property market is about dirty, stolen or untaxed money flowing into it. Don't think this‌ will change anything there.

 

[GPT]

No answers can be given at this moment. The only thing I can say from‌ experience is that "when one door closes, two new doors open".
Keep in mind that‍ it takes (a) decade(s) to come up with a proposal and implement it globally. It⁠ takes hours to find a new loophole once its clear on how it will affect⁤ "us".

I wouldn't worry too much about it.

Tax = theft. Always. No exception.

 

[JohnLocke]

I totally agree, they can do what ever they want,‍ governments will always be the winner.

 

[troubled soul]

Still people find way to save tax.

 

[Martin Everson]

Yes they will‌ but not in the way it has been done in the past.

 

[fbsworld]

If selling goods to Europe, definitely a UK company because of the new VAT regulation‌ in Europe arriving in July 1, 2021!

 

[GPT]

Why would that‍ be beneficial? VAT still needs to be paid in the respective EU countries. Having a⁠ UK company is setting yourself up for more admin which means higher accounting costs... A⁤ European entity is easier from a compliance point of view and therefore cheaper to maintain.⁣

 

[fbsworld]

You have to consider 2 points about⁤ ecommerce in the EU:
- fiscal transparency of the UK LLP (if you live in⁣ a no income tax coutry for sure)
- EU VAT tax agent (for a UK⁢ company or any other UE company) versus EU VAT tax representative (for a non-UE company)︀

 

[GPT]

I probably don't⁤ understand... why then preferring a UK entity over an EU entity?

 

[fbsworld]

Because of the tax transparency of the UK LLP if you‍ are tax resident in a country with no income tax (as UAE) or territorial tax⁠ system (as Thailand).

 

[GPT]

The same applies with any EU entity. Where is the benefit?⁠

 

[fbsworld]

Not at all! Have a look to the UK LLP to understand it about‍ tax.

 

[uplana]

So you mean a UK LTD will be exempted from‍ VAT in any case!?

 

[GPT]

Its treated transparent. Is that what you mean?

The same‍ applies with an EU entity when you can proof that management and control is exercised⁠ somewhere else (can be a tax haven even).