US Disregarded Entity LLC and EU

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RealDude

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Has anyone here in the EU had success with their US Disregarded Entity LLC being recognized as a sole proprietorship by the IRS? In which country was that? Does anyone have experience with Germany or Poland (flat 19% PIT or even less)?

Last edited: Mar 10, 2023
 
I know a guy in‌ Poland who is selling software through his US LLC and is taking advantage of Polish IP Box.

Total tax paid: 5%

If you aren't a programmer you'll pay 19%‍ flat
 
Im a studied software‍ developer. I will sell with the LLC subscription based
1. mobile apps at apple/google store⁠
2. SaaS

Is IP Box possible in Poland, or less than 19%?
 
Thanks for the links. My guess is that IP Box only works when selling a‌ software license and not for subscription business models. What are the experiences in this forum?‍
 
Summary
Taking into account the position taken by the tax authorities, it should be assumed that,‍ in principle, the preferential IP Box tax rate can be applied to income earned from⁠ the provision of services involving the provision of SaaS software, regardless of whether or not⁤ the agreement provides for the licensing of the software. It is worth remembering, however, that⁣ in order to obtain full legal and tax protection for the application of the IP⁢ Box relief, so that it is not later challenged by the tax authorities, it is︀ necessary to obtain an individual tax interpretation - which is also emphasized by the Ministry︁ of Finance in its tax explanations on IP Box.
 
This is amazing, with 2-3K you'll have a binding dcision if you will be⁠ taxed at 5%
 
As an alternative model for Germany, one pays a total of 21% tax with a‌ German KG and a permanent establishment in the USA as LP.
 
how do you extract profits ? pay 5% tax but then Poland seems to have‌ a withholding wealth tax of 19%?
 
Yes, the‌ guy who told you in the beginning obtained a binding tax ruling from Polish tax‍ adiministration.
 
He sells software, don't know‌ if it's a subscription but regarldess on what he is doing you know that there‍ could be an opportunity for you. Ask somebody that knows this stuff.
 
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