Those are increasingly outmoded requirements. If you keep holding on to the past, the present won't wait for you, and then the future will hit you like a bag of bricks to the face.
Don't start a business if you can't afford accounting or other basic things.
It costs very little and it can help you in many ways (banking, PSPs, taxes). What are you doing running a business if you can't even budget some basic paperwork to be done for it?
I can understand pushing back against audits, but just pure, simple, basic accounting...
Raise money if you need to in order to meet your business needs. Friends and family. Bank
loans. Angel investors. Seed investors. VC/PE. You have the drive — go out and find them. OPM is great. Just pay them back and give them value.
Don't start a foreign company if you can't afford to meet substance requirements.
Very few jurisdictions haven't implemented substance requirements yet (for example Samoa), but they are a dying breed.
OECD comes for all.
The degree of substance requirements vary but don't look at the relaxed requirement in jurisdiction X today and expect them to stay that way. Be smart. Look at what's going on and deduce what the next move is going to be. Prepare for that. Monitor the situation.
Don't commit tax fraud/tax evasion.
This includes VAT fraud in EU/EEA/UK.
Without a doubt the dumbest crimes you can commit, because the burden of proof is often reversed. You'll probably end up paying the tax you should have, and more in penalties and loss of opportunities.
This brings us to...
Residence is key.
If you don't like the taxes where you live, don't live there.
I swear there is pure tax-brain-rot in the Spanish tap water.
Go live somewhere else. The world is big and you can find different
tax incentives all over the world.
The
Perpetual Traveller dream is just that: a dream. I can't deny there are people out there who do it. But it's getting harder. More and more are opting for genuine, bonafide tax residence somewhere.
Be OK with paying more than zero tax.
It's possible (see
0% tax for digital nomad achievable?), but to a lot of people, simply paying less tax leads to a better quality of life than striving for zero tax.
Paying even just a modicum of tax gives an air of legitimacy that can helpful.
Banking secrecy is dead.
Banking secrecy is gone. You can run around the world chasing non-
CRS territories but they are running out, and the last ones standing are going to be places you probably don't want to put your money anyway.
Establish your residence and business in such a way that secrecy is a non-issue.
Corporate secrecy is dying.
Forget
anonymity. Instead, understand what is public, what is limited, and what is private.
Public = anyone can view.
Limited = some information is public, some is limited (to law enforcement, to media with good cause, to government).
Private = only you and the government know.
Consider that data leaks, both from service providers/lawyers and from corporate registers themselves.
Use nominees cleverly and carefully.
Asset protection is alive.
Don't buy off-the-shelf solutions. Get something bespoke, set up with the help of people who understand all applicable laws and risks. Don't google "
cheap cook islands trust fast instant setup i'm being sued". Plan ahead. Understand your risks. Be realistic.
Good asset protection usually doesn't rely on secrecy (see previous two points).
Pay peanuts, get monkeys.
There are times in life when monkeys are great. They can be great companions at your jungle villa in Costa Rica or fun to encounter in the wild or just walking around Gibraltar or
Singapore.
What they are not good for is setting up companies, opening bank accounts, and
tax planning.
Just like you don't sell your own time and skills for cheap, neither should you expect others to. Experience costs.
Don't get ripped off, though. Perform
due diligence on service providers. And explain your scope to them clearly. Even a good, trustworthy lawyer can go above and beyond racking up billable hours if you don't tell them exactly what to do (ideally agree on pricing in advance).
Paralysis by analysis.
I see so many OCT users fall for this.
Are you entrepreneurs or wannapreneurs?
Asking questions, doing research, and analysing options are good things that you should be doing.
But too often I see people get stuck in hypotheticals and — by the looks of it — getting nowhere, instead worrying about to
cash out their 6 trillion USD in
crypto using their Cambodian passport while residing in Paraguay. In reality, the business is either non-existent or just puttering by.
Grow your business.
This is probably the most important part. If you have a business that's doing well, focus on growing it if you can continue to scale it up.
Don't take your 500,000 USD/year business offshore just to save on taxes. You probably can't save on taxes (legally) and even if you do, I'd bet the costs of doing so aren't that much different from the costs of paying tax.
Instead, grow your business. Get it big enough that going international starts making sense, factoring in all the costs and complexities thereof.
KYC: Banks are banks are banks.
View attachment 5980
— Look at all those ducks and what a nice row they form!
#inspirational
This comes back to basic accounting. Companies with basic accounting don't struggle with showing invoices and agreements when banks ask.
If you want to use fiat money, you have to play by the fiat money rules. This means SOF (Source of Funds) and SOW (Source of Wealth) checks and disclosure.
Keep all statements, invoices, agreements, receipts. Maintain fresh bank statements and utility bills/proof of address. File your taxes. Keep copies of the returns. Store it all safely and redundantly.
Things are tough already and will only get tougher. Be prepared for that.
The End
Armenia starts exchanging tax information under OECD by 2025?
