1

I work for a British agency now, but I'm outsourced for a German project that is partially remote and I'm going to be based mostly in Poland. Not sure how long will be the contract, but it made me think if I should move the company to Poland? Maybe, in this case, I could also move my company to tax heaven like HK or Belize? Any experience with that? My accountant has no much clue about international law.

closed as primarily opinion-based by Pete B., Bob Baerker, Nathan L, Dheer, Rupert Morrish Dec 10 '18 at 20:54

Many good questions generate some degree of opinion based on expert experience, but answers to this question will tend to be almost entirely based on opinions, rather than facts, references, or specific expertise. If this question can be reworded to fit the rules in the help center, please edit the question.

-1

Since this is very general I will offer a general answer.

Here is the general confused belief:

"Using a company in Belize/etc I pay no tax on freelance!!

Now here is precisely the error in that thinking:

Every penny you bring back to the UK/US/Etc, you pay tax on just the same. No difference whatsoever.

This is the basic total confusion about the idea behind "no tax in belize for freelancers!"

Say

  1. you live in the UK and Google pays you $100,000 for a job.

  2. you then of course pay normal UK taxes of all types on $100,000. Let's say $30,000 for clarity.

Now compare this

  1. you live in the UK

  2. Google pays $100,000 to BelizeSoft for a job. No tax in Belize, yay. So there's $100,000 sitting in the BelizeSoft bank.

  3. BelizeSoft pays you $100,000

  4. you then of course pay normal UK taxes of all types on $100,000. Let's say $30,000 for clarity.

There is utterly no advantage. Nothing.

Every cent you repatriate to the UK, you just pay tax on totally normally. Utterly no difference if BelizeSoft pays you or Google pays you.

It's that simple.

Hopefully this explains the base confusion about "freelancing through a tax haven!"

{Obviously, not even mentioned here are the sundry downsides (thousands a year to (pointlessly) maintain such a company, etc etc). And the upsides (in some arcane fields, you may get legal protection doing this, but it's utterly irrelevant to say programers).}

  • This answer needs some references to back these claims up. It's common practice for mutlinationals to have complex structures to minimize tax paid in the EU (and elsewhere) so clearly there is some tax benefit at some point. – Eric Dec 10 '18 at 15:24
  • multinationals have no relationship, though, to an individual trying to "freelance through a tax haven". – Fattie Dec 10 '18 at 17:47
  • regarding a "reference" that you have to pay tax in the UK - I'm not really sure what that would be! :) perhaps gov.uk/topic/personal-tax/income-tax – Fattie Dec 10 '18 at 17:49
  • If you don't live in the UK you don't have to pay taxes in the UK. If there are lower taxes in poland and you move to poland and then work from poland you pay taxes in poland. It's slightly more complicated if you have a business, but nothing prevents you from opening a new business in poland that works for your new employer – xyious Dec 11 '18 at 21:31
  • XY - "If you don't live in the UK you don't have to pay taxes in the UK." of course, obviously. This post is about the case of people trying to use "tax haven companies" to reduce tax. – Fattie Dec 11 '18 at 22:11

Not the answer you're looking for? Browse other questions tagged or ask your own question.