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💻 Website - https://quarma.net
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International Tax Optimization → The 6 Big Questions You Need to Ask Yourself
1/ Is my business tax-neutral?
Your company calculates a profit, you pay corporate tax
then you have the choice of paying yourself dividends or not
→ Best used in a country with low corporate tax (and on dividends)
2/ Is my business tax-transparent?
Your company pays no tax
you, as the shareholder, will be taxed directly
→ Best used in a country with low corporate tax (more difficult to set up)
3/ Where is my company's registered office?
To determine your corporate tax
but also, for example, the taxation of your capital gains (from investments and/or sales) in a professional capacity
→ Be careful of the concepts of permanent establishment and economic substance
4/ Where am I a tax resident?
To determine your personal tax liability
income tax
and especially the tax liability on your dividends if you use a traditional/opaque company
→ your main residence (center of vital interests)? where you spend the most time? your nationality? ...
5/ Where is my company controlled?
To see if you yourself qualify as a permanent establishment
→ Under international tax treaties
6/ Elements that are almost useless?
Where is your bank account
where are your customers
your nationality
etc.
The strategy I use?
→ A hybrid solution, with tax-neutral or traditional companies:
corporate income tax: only 15% or 3%
there is no tax on capital gains: neither on sales nor on investments (ETFs, bonds, cryptocurrencies, stocks, etc.)
and 0% tax on dividends: or only 5% if I am a French tax resident
→ Balance sheet?
I pay my corporate tax of 15% or 3%
I pay no tax on my capital gains
and I pay my dividends only where I am a tax resident
"This makes for a total tax rate of between 3% and 19%, regardless of where I am in the world 😉"
🔔 This is not suitable for everyone or for all activities