Where do you have your company located?

**DanHorvat** · 27 February 2018, 9:39 am

Are you a UK resident or not?

If not, it doesn't make any sense whatsoever to open a UK company. You'll pay all the taxes and fees, yet your credit score will always be 0. So, you'll be paying but won't be getting back the benefits.

**mgaming** · 27 February 2018, 10:46 am

Even if you are not a UK resident you can have up to 11850 GBP as a company director without any tax. You only pay corporate tax (19%) and tax on dividends over 2k gbp. It's true about credit score, but in some countries you are not able to promote gambling legally.

**eenzoo** · 27 February 2018, 11:03 am

19% is a ridiculous high taxation. The UK Ltd has benefits if you are a resident.

Update March Romania: 3% tax till €1 mio revenue. (1% if you hire two locals)

**mgaming** · 27 February 2018, 11:28 am

Originally Posted by eenzoo

19% is a ridiculous high taxation. The UK Ltd has benefits if you are a resident.

Update March Romania: 3% tax till €1 mio revenue. (1% if you hire two locals)

You can try as well Ireland with just 12,5% CIT and 16 500 eur allowance. A tax rate isn't the only factor you should consider - the level of bureaucracy, trustworthy and stable of law are also important.

**Jan** · 28 February 2018, 7:16 pm

Denmark: 22% corporate tax, lowered from 25% during recent years.

Then if you actually want to get some funds out of the company to get a little something for yourself - the gloves comes off.

Living in some kind of capitalism/socialism experiment, I bet Mao and Stalin would be impressed.

**Topboss** · 28 February 2018, 7:27 pm

I have a Registered Company in South Africa and one in New Zealand and pay tax to both countries. However South Africa and New Zealand have a Double taxation agreement so each country takes into account the tax that has been paid in the other country so this ensures that I don't land up being taxed double.

**TheGooner** · 28 February 2018, 8:33 pm

Local company in New Zealand - 28% company tax.

NZ has tax problems as budget continue to blow out with NZ trying to be the Scandinavia of the South Pacific with generous social welfare net for all. But the more the Govt provides and pays the more people complain that THIS isn't done or THAT isn't paid for.

**Topboss** · 28 February 2018, 8:50 pm

Agree totally Gooner!
Hence why the bulk of our funds still go through the South African Company and NZ gets the crumbs

**milan** · 2 March 2018, 1:21 am

Originally Posted by eenzoo

19% is a ridiculous high taxation. The UK Ltd has benefits if you are a resident.

Update March Romania: 3% tax till €1 mio revenue. (1% if you hire two locals)

1% till €1 million revenue, if you have 1 hired person.

Starting a company around 250€, accountant between 100-200€/month, 5% dividend tax.

**Brand_24** · 2 March 2018, 2:05 am

Originally Posted by milan

1% till €1 million revenue, if you have 1 hired person.

Starting a company around 250€, accountant between 100-200€/month, 5% dividend tax.

Interesting info

1% is really low ....

**milan** · 2 March 2018, 2:24 am

Originally Posted by Brand_24

Interesting info

1% is really low ....

+costs with an employee (around 5.000€/year)

**mgaming** · 2 March 2018, 5:02 am

Do you belive EU will accept this? Lowest tax rate in EU is now in Ireland (12,5% CIT). It's just matter of time, when they will act against this - no country in EU will accept such low tax rate

**Strider1973** · 6 March 2018, 2:08 am

Originally Posted by eenzoo

Forget Malta, i have a company for 6 yrs ... during the years it becomes more and more expensive. You pay easily 5k a year including accounting and you hope you get 6/7 from you 35% tax payment back. And than? If you get this payment (i heard about more often about problems with refund), you need to transfer it out of Malta.

Means you need an active (OECD rules) offshore company with bank account OR you take this money with your personal bank account. Than you have to pay personal income taxes. Its an endless payday for accountants and consultants.

There are lots of more useful structures out there. Bulgaria is quite nice, Romania, Cyprus, even UK.
BUT if you plan the long-run and with bigger numbers, there is no way around to relocated yourself (or better your permanent residence) to a low tax country without CFC rules.

If you want to stay at "home" or in one of the the "first world" countries, you have to pay the taxes.

That's exactly the problem. Of course you can setup a company even in a country with no taxes (there are still dozens of them). But what if you want to transfer the money to your personal bank account in your local country? Then you'll have to pay income tax on that payment, because your local government isn't that stupid. You can probably optimize some of your expenses (for example for social security) but I don't think it's possible to avoid taxes if you live in a first world country.

If you really want to avoid taxes, then you'll have to relocate to a country with low or no income taxes.

**a.harrison** · 6 March 2018, 3:32 am

Originally Posted by Strider1973

If you really want to avoid taxes, then you'll have to relocate to a country with low or no income taxes.

In general, it's an absolute true for a resident of the first world country. But you still can get some other benefits. For example, if you own Estonian or Latvian company you don't have to pay corporate tax 20% annualy: it only to be paid from amount of profit you withdraw from company accounts.

It creates an ability to accumulate money. Another cherry is that you can buy some property for the company, and such acquisitions can be a subject to some lower taxation (depends on country).

Somehow I never heard about Romania micro-company option. As far as I learned for now, it has an annual threshold of 500k EUR, and you can't earn from gambling. I'll definitely make deeper research, and for now I can suggest accepting payments from gambling companies to Estonian company, and paying from it to your Romanian micro-company for some other services. At the same time your income can't consist of liquid substances like "consulting" or "management" services for more than 20%, so we have to find out if it's ok to earn from link building, web-design etc. It's also should be learned how you'll be able to spend your money from micro-company's bank account.

Classical offshore companies are still can be suitable for some trading businesses, but for affiliates I don't see a potential, as once you sent yourself money for living, they to be taxed with default local rate. Take also in count that you it will require some black magic to open an account in some more or less reputable bank, that has at least a signboard on the office it claimed to be located in.

**Richardo3** · 7 March 2018, 3:02 pm

Originally Posted by mgaming

I have my company registered in UK. 19% CIT, 11850 GBP allowance for Company Director and much more. I can send conctact details to trustworthy tax advistory company, who can handle everything for you (other locations as well: Malta, Ireland etc.)

mgaming, can you send me details of this company also? Thanks you!

**Wanner** · 9 March 2018, 10:40 am

Ireland

**Triple7** · 3 April 2018, 12:41 pm

Originally Posted by mgaming

Do you belive EU will accept this? Lowest tax rate in EU is now in Ireland (12,5% CIT). It's just matter of time, when they will act against this - no country in EU will accept such low tax rate

Well, so far no problems.

The thing is, is that it's a system to make it a bit more interesting to set up a company and not to attract Google, Starbucks and Fakebook. The opposite of what Western European countries are doing. In the West they're bullying everybody with bureaucracy and high tax rates, except the big guys with whom they make some deals.

Deals that are under investigation of the EC by the way. For example IKEA evaded 1 billion euro tax in 5 years because of making some deal with the Dutch government to pay less tax and having some construction with companies in Luxemburg and the Netherlands. Starbucks paid some years ago like 1 - 1,5 % tax.

And Ireland had to be taken to court for their deal with Apple: over 10 billion euro unpaid tax in like 10 years.

Btw, Bulgarie has 10% company tax, flat. Dividend tax is 55 in Bulgaria.

Plenty of ways to avoid hefty taxes that are charged in the West. They do it, because they have money-wasting governments and they know that companies that are not Google are usualy not so mobile where they allocatie their profits, dividends, etc.

**Triple7** · 3 April 2018, 12:43 pm

Classical offshore companies are still can be suitable for some trading businesses, but for affiliates I don't see a potential, as once you sent yourself money for living, they to be taxed with default local rate. Take also in count that you it will require some black magic to open an account in some more or less reputable bank, that has at least a signboard on the office it claimed to be located in.

Affiliates have options, but I would suggest anybody to locate themselves at the place where they want to pay tax. The time of having a Seychelles company and running your business from an office somewhere in the West is over.

**Jiayu** · 3 May 2018, 4:02 am

Originally Posted by mgaming

I have my company registered in UK. 19% CIT, 11850 GBP allowance for Company Director and much more. I can send conctact details to trustworthy tax advistory company, who can handle everything for you (other locations as well: Malta, Ireland etc.)

I'm having a debate with my accountants on the VAT treatment as a UK based business receiving 0% VAT affiliate commission.
While we agree commission sent from Gibraltar based entities UK VAT shall not be applicable, though he questions Malta (18%) and Curacao (6%) based affiliate commission senders to be potentially applicable to "EC sales".

It is common practice by operator's marketing entities and commonly known that affiliate commission is paid out ex. VAT, I've been even specifically asked by operators to raise those invoices with a zero VAT rate.

Further my accountant states:

"our services could be deemed by HMRC to be "e-services". If any of the business clients use your services to make supplies in the UK then you may be required to account for UK VAT. If the services are used to make supplies, even if e-services, in EC countries the you may be required to account for EC sales due to "use and enjoyment"."

So doing affiliate marketing, i.e. generating leads and FTDs for operators and earning of these CPA commission and/or revenue share, is there agruably some case and truth in it that the service provided by us as an affiliate to casino/sportsbook is seen as potential e-service as my accountant questions.

Now I wonder; is it almost best practise to declare you services just as "Marketing Consultancy" without going too much into details of the funnel of customer aquisition to gambling operators. I am thinking also, that operators, i.e. the actual gambling provider is separate from the marketing entity that pays you the commission. This may cut of the whole connection between me as an affiliate and the actual operator and it is the marketing entity serving as an intermediary. So the Affiliate provides service to Marketing Entity which provides the service to the Operator.

I am quite sure, paying operators won't pay any commission + VAT, that I can then forward to HMRC. As I would also imagine operators not to claim any input VAT back from their local fiscal authority.

It would be great if you can share how you handle commission income from specifically Malta based entities.

Could you also share the contact details of that tax advisory company to me please?

**Jiayu** · 3 May 2018, 4:15 am

Originally Posted by eenzoo

19% is a ridiculous high taxation. The UK Ltd has benefits if you are a resident.

Update March Romania: 3% tax till €1 mio revenue. (1% if you hire two locals)

Originally Posted by milan

1% till €1 million revenue, if you have 1 hired person.

Starting a company around 250€, accountant between 100-200€/month, 5% dividend tax.

Great example with Romania! And I agree UK Ltd is mostly beneficial if you also live there.

Can you vouch for a Romania based business?
Is your business based there, are where are you based as an individual?
There must be pitfalls?

I'll be travelling to Bucharest and will work there for month, maybe you have some local contacts who can advise me on the setup?

I kinda like the idea to have your business somewhere based where you can well optimise tax while still having somewhat the freedom to choose your place of residency, and potentially also optimise your income tax.

Would be great if we could connect via Skype, if you don't mind.

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