Hi,
We're a small company based in Ireland, all our profits are generated online and outside of Ireland. The current situation is that we're earning a lot of money, and we're taking it all to pay for our house. So basically, we're currently paying 0% corporation tax (the company makes no benefits since we take all the money), but 55% in personal income tax. The house is now paid for, and so instead of paying ourselves like crazy, we want to keep the money in the company and start giving ourselves "normal" salaries so that we can pay a "normal" income tax of 20%. We've got three problems:
1. The corporation tax in Ireland is 12%.
2. The accounting is tedious, complicated and it's wasting our time.
3. A small part of our income comes from donations. According to Irish taxation this is covered by gift tax (which in our case means we don't pay tax on it). According to our accountant, if a taxman sees the amount we're getting, he/she will interpret it as income, claim income tax on it and penalties going back 5 years.... There's no way we're paying income tax on donations and there's no way we're taking a risk with the tax man...
We're looking for a place to incorporate our new company where:
1. There's 0% corporation tax. We're happy to pay personal income tax on what we're paying ourselves, but we don't want to pay any corporation tax.
2. Accounting isn't going to be complicated. If there's no accounting then even better.
3. we can can have a merchant account to accept credit card payments
4. we can have an address, copies of utility bills or whatever is needed for us to interact with Adsense and Paypal
5. It's legal for a director to use the company's money for his personal use (via debit card for instance).
This way, we're hoping to do the following:
1. Make money online via the merchant account, paypal and adsense and gather the money in the new company
2. Pay ourselves via bank transfer to Ireland and declare it as personal income tax (20% Irish tax)
3. Debit money from the company's debit card so we can retrieve donations in cash (it's important for us that this can be done LEGALLY, i.e. that the jurisdiction of the company allows directors to use its money for their personal use)
In terms of privacy, we don't have any special requirements. We want everything to be fully legal, we're happy to pay taxes as Irish citizens but as far as our company goes, we want to do business elsewhere. So all legal, no real need for privacy, unless you think it's better (I'm not too sure about this and I'm new to all this).
Please let me know what you think and what your suggestion is.
We're a small company based in Ireland, all our profits are generated online and outside of Ireland. The current situation is that we're earning a lot of money, and we're taking it all to pay for our house. So basically, we're currently paying 0% corporation tax (the company makes no benefits since we take all the money), but 55% in personal income tax. The house is now paid for, and so instead of paying ourselves like crazy, we want to keep the money in the company and start giving ourselves "normal" salaries so that we can pay a "normal" income tax of 20%. We've got three problems:
1. The corporation tax in Ireland is 12%.
2. The accounting is tedious, complicated and it's wasting our time.
3. A small part of our income comes from donations. According to Irish taxation this is covered by gift tax (which in our case means we don't pay tax on it). According to our accountant, if a taxman sees the amount we're getting, he/she will interpret it as income, claim income tax on it and penalties going back 5 years.... There's no way we're paying income tax on donations and there's no way we're taking a risk with the tax man...
We're looking for a place to incorporate our new company where:
1. There's 0% corporation tax. We're happy to pay personal income tax on what we're paying ourselves, but we don't want to pay any corporation tax.
2. Accounting isn't going to be complicated. If there's no accounting then even better.
3. we can can have a merchant account to accept credit card payments
4. we can have an address, copies of utility bills or whatever is needed for us to interact with Adsense and Paypal
5. It's legal for a director to use the company's money for his personal use (via debit card for instance).
This way, we're hoping to do the following:
1. Make money online via the merchant account, paypal and adsense and gather the money in the new company
2. Pay ourselves via bank transfer to Ireland and declare it as personal income tax (20% Irish tax)
3. Debit money from the company's debit card so we can retrieve donations in cash (it's important for us that this can be done LEGALLY, i.e. that the jurisdiction of the company allows directors to use its money for their personal use)
In terms of privacy, we don't have any special requirements. We want everything to be fully legal, we're happy to pay taxes as Irish citizens but as far as our company goes, we want to do business elsewhere. So all legal, no real need for privacy, unless you think it's better (I'm not too sure about this and I'm new to all this).
Please let me know what you think and what your suggestion is.
