Live In Thailand, Work Abroad, Pay Minimum Tax

[arjenmes]

Next year I will live in Thailand, but work in Holland for 3 months a year.

I like to invoice the company I work for on a dayrate basis from a Thai company.

Does anybody have any advise what will be the best way to minimise costs for taxes?

[Chang_paarp]

Invoice from your company in the Virgin Islands, or any low tax entity, transfer living expences to Thailnd.

[cclub75]

Invoice from your company in the Virgin Islands, or any low tax entity, transfer living expences to Thailnd.

I agree, that's the way to go. Off shore !

But... but, in some european countries, because of fiscal inquisition pressure, a serious company would be very reluctant to pay an invoice issued by a company settled in BVI...

It's way too hot. (Enough to know that our Ex Great Leader AKA Thaksin has some companies in BVI. )

If they get a fiscal control, you can be sure that this point could be a problem ("why are you doing business with such fiscal paradise full of drugs traffickers, rooten politicians, thiefs and criminals etc. ?")

Anyway. There is a trick.

You set a company in BVI, but you open a bank account... in Hong Kong. And you rent like an "postal address" in HK too.

This way, your BVI company "looks" like a HK company. This is a big trading place (not suspicious).

The money is going to a nice bank in HK, the address on the invoice is HK. Perfectly healthy.

[kontkikker]

Invoice from your company in the Virgin Islands, or any low tax entity, transfer living expences to Thailnd.

Anyway. There is a trick.

You set a company in BVI, but you open a bank account... in Hong Kong. And you rent like an "postal address" in HK too.

This way, your BVI company "looks" like a HK company. This is a big trading place (not suspicious).

The money is going to a nice bank in HK, the address on the invoice is HK. Perfectly healthy.

Yep Agree, I'm dutch as well and exactly the same setup as we have used..

The only issue can arise when there are double taxation issues, or when thai clients will try to claim back withholding tax they have to pay on their foreign money transfers to your overseas company, and try to contact HK to do this finding out that you're not actually incorporated there.

So the next step up is to actually incorporate in HK not in one of the tax paradises. For your situation you'd still pay 0 tax, but just need to do accounts - which local agencies can do for you for a bout 3-500 usd per year.. so nothing mayor but at least you're fully incorporated in HK and there will be no issues with taxes or legal paperwork. I can hook you up with an agency I'm using if req'd.

Vr. Groet..

Edited November 29, 2006 by kontkikker

[cclub75]

Yep Agree, I'm dutch as well and exactly the same setup as we have used..

The only issue can arise when there are double taxation issues, or when thai clients will try to claim back withholding tax they have to pay on their foreign money transfers to your overseas company, and try to contact HK to do this finding out that you're not actually incorporated there.

So the next step up is to actually incorporate in HK not in one of the tax paradises. For your situation you'd still pay 0 tax, but just need to do accounts - which local agencies can do for you for a bout 3-500 usd per year.. so nothing mayor but at least you're fully incorporated in HK and there will be no issues with taxes or legal paperwork. I can hook you up with an agency I'm using if req'd.

Vr. Groet..

You're right. But do not forget that arjenmes was on a scheme "1-1". He doesn't want -apparently- to invoice other customers. So in this case, a "light" solution like I've described looks OK.

However, to extend the business -still off shore- incorporation directly in HK should be the way to go.

Last point : there is still a big difference between BVI / HK, a part from accounting... It's privacy...

If I remember correctly, name of shareholders of a BVI are protected. But in HK they appear on the public registry. Am I correct ?

This would explain, why our Ex Great Leader Thaksin and dozen of thousands of his chinese friends have BVI companies. ah ah ah !

Edited November 29, 2006 by cclub75