Register as a translator (one person) company in paradise haven (offshore)
Thread poster: Alex Pszczola

Alex Pszczola  Identity Verified
Local time: 07:10
English to Polish
+ ...
Mar 9, 2005

Hello,

Reading, that owners of Skype.com (being Swedish) registered their company in Luxembourg (tax haven) I would like to ask you few questions:

0. Is it really worth it to set up such offshore company for one-man translator company from Poland?

1. Does anybody has any experience being registered as a translator in any of tax haven countries: Andorra, Cyprus, UK (for foreigners), Gibraltar and so on?

2. How much does it cost to setup such a company (some agents want 2350 usd minimum per year) directly i.e. without agents?

3. What are the yearly cost of maintaining such a company?

4. I heard that Gibraltar will lose status of tax haven shortly. Will other tax havens follow?

I am just considering the idea, because I travel a lot through Europe and would like to find better place for bussiness than Poland with strange law.
Any other ideas?

Thanks a lot!
Alex


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Williamson  Identity Verified
United Kingdom
Local time: 06:10
Flemish to English
+ ...
Compare Mar 10, 2005

The UK and Luxembourg are no tax-havens, but countries with a more lenient business-oriented tax-system.
Where you register your "seat of fortune" does make a difference tax-wise. Do you want to shop in the most expensive fiscal shop or in the cheapest.
Why do you think a Polish agency set up shop in Liechtenstein?
Not all European tax-havens are a part of the E.U. (San Marino, Andorra?) and hence they are not likely to disappear.
Why are a number of American corporations registered in the State of Delaware?
Comparing E.U.-fiscal systems and the systems of tax-havens and putting your results in a spreadsheet can do no harm.
You will see that,even after tax-deductions, it is worth the sum you mentioned, especially for those countries with a tax-rate of 49-50%. Don't know whether this is the case for Poland.




[Edited at 2005-03-10 14:26]


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Sergei Tumanov  Identity Verified
Local time: 08:10
English to Russian
+ ...
Estonia Mar 10, 2005

You can consider possibility to buy an estonian company for the following reasons:

1. there is no income tax on reinvested profit (retained earnings).
2. there is no social tax on the wages to employees abroad at their constant places of residence.

rate of exchange 15.64 eek = 1 euro

1. one time acquisition costs - about 8000 eek
2. opening of corporate multicurrency account at Sampobank Tallinn - free * www.sampo.ee *, at Hansapank tallinn - 200 eek * www.hanza.net *
You can operate the account via internet bank - free
debit ATM card for the account - 15 eek monthly (1 euro)
3. monthly tax declarations can be given via internet site www.ma.ee (social on wages, and if you have annual turnover more than one million eek - vat declaration)by yourself, meaning for free
4. annual report - usual cost charged by freelance bookkeepers abt 2000-2500 eek

The limitation on the board - 50% of the directors to be estonian residents, so you are to be the foreign direktor and you need to find some local person to be the local one to constitute the board of two persons.

usual social tax payable by a company on wages paid - 33%
plus
26% deductible personal income tax
+++

The main benefit is that the company does not pay any income tax.
You can also reduce the profit by paying all revenues from the clients to subcontractors (for example freelance translators from Poland - will be business expenses, allowed to be deducted from revenues)leaving something to pay for the bookkeeping.

It is possible to make a contract with some private bookkeeper or agency for a monthly fee of about 500-1000 eek. In this case they prepare the annual report for free.




[Edited at 2005-03-11 00:27]


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Daniele Martoglio  Identity Verified
Local time: 07:10
Polish to Italian
+ ...
In poland you can choose flat-rate tax at 19%! Mar 11, 2005

Alex Pszczola wrote:

0. Is it really worth it to set up such offshore company for one-man translator company from Poland?



So WHY u look for a tax heaven? It's enough tax heaven?
In Italy sometimes tax-rate is more than 50%!!!


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Alex Pszczola  Identity Verified
Local time: 07:10
English to Polish
+ ...
TOPIC STARTER
Poland - tax haven with hidden costs Mar 11, 2005

Hello,

Poland may have 19%, but you have to pay other costs as well as high social security almost 200 EUR/month and the tax law is vague, so there is a risk of paying fines.

Anybody have any experience with taxes in Andorra or Monaco?

Can anyone comment on the following?

# The UK is a tax haven for people of foreign domicile, even if they are UK resident (residence and domicile being separate legal concepts in the UK), in that they pay no tax on foreign income not remitted to the UK. Similar arrangements are to be found in a few other countries including Ireland.

UK
General LLP Benefits

* The UK is actively pro-business and is relatively free of bureaucracy.

* A virtual office presence can be established in London to give the impression of being a domestic LLP.

* The Certificate of Formation, Articles of Organization (if applicable) and the LLC Agreement are remarkably flexible.

* All legal documents supplied from the appropriate division of corporations can be quickly apostilled pursuant to the Hague Convention of 1961.

* Highly respectable and credible jurisdiction.

* Full range of services office address options.

* UK LLPs can be registered in as little as 7 working days (if expedited).

* Well-educated population.

* Highly developed corporate and general law.

* Excellent communications.

* Prestige of having a UK registered entity.

* Low annual Companies House Duties.

* Fiscal transparency for both domestic and non-resident LLPs.

* Ability of non-resident LLP's to be externally managed in low tax, tax-free or tax exempted jurisdictions.


Kind regards,
Alex


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Daniele Martoglio  Identity Verified
Local time: 07:10
Polish to Italian
+ ...
In the whole europe the social security cost MORE! Mar 11, 2005

Alex Pszczola wrote:

Poland may have 19%, but you have to pay other costs as well as high social security almost 200 EUR/month and the tax law is vague, so there is a risk of paying fines.



if you look in proz forums, you can see that in other european country you pay MORE money for social security!

And u forgotten to say that u pay ONLY 170 EUR/month!
in poland for self employed people it's FIXED! In other country, the fixed amount is higher, AND u must add some % of income!

Daniele
-------
"Fat angel in Polish Tax Paradise"... ha ha ha


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Williamson  Identity Verified
United Kingdom
Local time: 06:10
Flemish to English
+ ...
British VAT treshold for 2005 Mar 16, 2005

Today the Secretary of the Exchequer proposed the budget: on page 63 it says that the VAT-treshold for 2005 has gone up from £58,000 to 60,000.

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