Question Questions about Best Crypto Exchange KYC Methods (Real Docs, Darks, Utility Bills, Company etc)

[Choosing7269]

Hi guys, I'm from India. We have a situation here with Crypto taxes (30% + no loss offset) and TDS (1% at every txn). So in a nutshell, I want an exchange account from a different country.

These are the solutions I'm thinking of:

1. Palau ID + EU "Real" Utility bill - Palau ID allows us to do KYC in various exchanges. A list of them can be found here : KӢBase. And the EU utility bill would be for L2 KYC for address verification (can use some random address or some mailing address if I want their debit card).
2. Indian Passport + EU "Real" Utiliy bill - Same stuff as above
3. SVG IBC - Form an IBC in Saint Vincent and Grenadines, it's cheap and doesn't have any accounting requirements either. But can't get the crypto debit card with this option.
4. Darks - Read on the forum to just print and laminate the edited passport printout and paste it into the original passport. Does this still work?

Can you rate each one of them? And if you have any other suggestions, then please share them here.

 

[lory]

Choosing7269 said:

1. Darks - Read on the forum to just print and laminate the edited passport printout and paste it into the original passport. Does this still work?

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The latest news is that they are using people's smartphones to verify if the passport is genuine. There are still many CSPs that haven't adopted this method yet, so one should hurry if they want to exploit this loophole in the system. I'm sure it won't be many years before it's closed.

 

[foreverdoomed]

most EU countries are very restrictive for crypto trading, wouldn't KYC there rea#44!

 

[Choosing7269]

foreverdoomed said:
most EU countries are very restrictive for crypto trading, wouldn't KYC there rea#44!
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What countries do you recommend?

 

[wellington]

Choosing7269 said:
Hi guys, I'm from India. We have a situation here with Crypto taxes (30% + no loss offset) and TDS (1% at every txn). So in a nutshell, I want an exchange account from a different country.

These are the solutions I'm thinking of:

1. Palau ID + EU "Real" Utility bill - Palau ID allows us to do KYC in various exchanges. A list of them can be found here : KӢBase. And the EU utility bill would be for L2 KYC for address verification (can use some random address or some mailing address if I want their debit card).
2. Indian Passport + EU "Real" Utiliy bill - Same stuff as above
3. SVG IBC - Form an IBC in Saint Vincent and Grenadines, it's cheap and doesn't have any accounting requirements either. But can't get the crypto debit card with this option.
4. Darks - Read on the forum to just print and laminate the edited passport printout and paste it into the original passport. Does this still work?

Can you rate each one of them? And if you have any other suggestions, then please share them here.
Click to expand...

We recently laid off the Indian contractors we have billing us monthly due to the stupid tax you guys have, i feel for you.

 

[Choosing7269]

wellington said:
We recently laid off the Indian contractors we have billing us monthly due to the stupid tax you guys have, i feel for you.
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Haven't paid any taxes so far in 2 years, but buying USDT is like 10% more expensive than the exchange rate of USD/INR. But the benefit is that I get paid in USDT, so I automatically make 10% more compared to if I was paid in USD.

 

[arjunking]

Choosing7269 said:
Hi guys, I'm from India. We have a situation here with Crypto taxes (30% + no loss offset) and TDS (1% at every txn). So in a nutshell, I want an exchange account from a different country.

These are the solutions I'm thinking of:

1. Palau ID + EU "Real" Utility bill - Palau ID allows us to do KYC in various exchanges. A list of them can be found here : KӢBase. And the EU utility bill would be for L2 KYC for address verification (can use some random address or some mailing address if I want their debit card).
2. Indian Passport + EU "Real" Utiliy bill - Same stuff as above
3. SVG IBC - Form an IBC in Saint Vincent and Grenadines, it's cheap and doesn't have any accounting requirements either. But can't get the crypto debit card with this option.
4. Darks - Read on the forum to just print and laminate the edited passport printout and paste it into the original passport. Does this still work?

Can you rate each one of them? And if you have any other suggestions, then please share them here.
Click to expand...

In the same boat as you are. Here is what I found out.

1. Doesn't work for me as the exchanges I use don't support RNS and technically you would still be liable to pay taxes in India.
2. Not sure if this helps you to avoid taxes as you are still a citizen of India and
3. This is the closest to what might work but even then you are technically liable to pay taxes as the company is being controlled from India. You need to show that it is being controlled offshore. Also you have to declare the ownership of this company in your ITR in India. For debit card, setup an account with a EMI and get their debit card.
4. Don't want to risk this with the new verification methods that are being added by exchanges. Last thing you want is your funds locked in your account and you can't verify your KYC due to darks.

 

[Choosing7269]

arjunking said:
In the same boat as you are. Here is what I found out.

1. Doesn't work for me as Binance is a must and they don't support RNS and technically you would still be liable to pay taxes in India.
2. Not sure if this helps you to avoid taxes as you are still a citizen of India and
3. This is the closest to what might work but even then you are technically liable to pay taxes as the company is being controlled from India. You need to show that it is being controlled offshore. Also you have to declare the ownership of this company in your ITR in India. For debit card, setup an account with a EMI and get their debit card.
4. Don't want to risk this with the new verification methods that are being added by exchanges. Last thing you want is your funds locked in your account and you can't verify your KYC due to darks.
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1. True, but it works for a lot of exchanges.
2. We are not liable to pay tax if we are NRI.
3. India doesn't have any CFC rules, so since the company is an opaque entity that is, it is considered a tax resident of SVG (unlike US LLC which is a pass through entity) therefore I'm not liable for taxes in India.
4. Understandable

For now I just use international exchange that haven't complied yet. And for future I would just create an SVG company like I discussed here.

 

[arjunking]

Choosing7269 said:
1. True, but it works for a lot of exchanges.
2. We are not liable to pay tax if we are NRI.
3. India doesn't have any CFC rules, so since the company is an opaque entity that is, it is considered a tax resident of SVG (unlike US LLC which is a pass through entity) therefore I'm not liable for taxes in India.
4. Understandable

For now I just use international exchange that haven't complied yet. And for future I would just create an SVG company like I discussed here.
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If you don't mind becoming a NRI then all your problems can be sorted.

In India taxes of offshore companies are determined by POEM. You can read about it here (Offshore Company For Indian Citizens: What Things To Consider)

 

[Choosing7269]

arjunking said:
If you don't mind becoming a NRI then all your problems can be sorted.

In India taxes of offshore companies are determined by POEM. You can read about it here (Offshore Company For Indian Citizens: What Things To Consider)
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Thanks man, that was a great read. Found this which might be helpful for both of us:

By the time I start making 50Cr/yr (~600k USD) I would be nowhere to find in India.

 

[arjunking]

Choosing7269 said:
Thanks man, that was a great read. Found this which might be helpful for both of us:

View attachment 6751

By the time I'm start making 50Cr/yr (~600k USD) I would be nowhere to find in India.
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50Cr is turnover. Not profit.
With leverage, it doesn't take much to cross that.
If it doesn't then setting up an offshore IBC is the best solution for you.

 

[Choosing7269]

arjunking said:
50Cr is turnover. Not profit.
With leverage, it doesn't take much to cross that.
If it doesn't then setting up an offshore IBC is the best solution for you.
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True, but that's still a lot at least in my situation. My portfolio hasn't hit 100k USD yet and I only trade spot. Brother if you have a decent amount of money then why not invest in nominee service? There are a lot of threads about it on the forum. Form a company and it would be in the name of the nominee but you have total control over it off the record. Another solution would be to pick some random dude in India (not someone near you or that knows you) and form the company under his name and pay him some money, that would be really cheap. Plus tbh I don't think SVG is going to snitch on you, just stay lowkey 😉

 

[arjunking]

Choosing7269 said:
True, but that's still a lot at least in my situation. My portfolio hasn't hit 100k USD yet and I only trade spot. Brother if you have a decent amount of money then why not invest in nominee service? There are a lot of threads about it on the forum. Form a company and it would be in the name of the nominee but you have total control over it off the record. Another solution would be to pick some random dude in India (not someone near you or that knows you) and form the company under his name and pay him some money, that would be really cheap. Plus tbh I don't think SVG is going to snitch on you, just stay lowkey 😉

View attachment 6753
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Even with a nominee service, you are liable to pay taxes. So I am looking for technically clean way to do the stuff otherwise it will be tax evasion which can have issues later on.
I am currently comparing all the jurisdictions and complex setups (How to create the Ultimate Tax effective Offshore Corp | Offshore Companies International)