Tax strategies for 2024, new game?

[scooterguy]

The issue is the OECD is a small group of nations that decided some tax rules in their favour and to their benefit. The west cannot simply decide the tax rules for the world when they are in the minority. A fairer system would be to allow all countries to vote or give input on any global tax changes that negatively or positively impact them. All countries need a voice and for their priorities to be taken into account. The decision making needs to be democratic just like this UN vote. If the tax rules are just then the majority of the world will agree with it. If they don't then it gets ditched....its called democracy something the OECD should support now the body is irrelevant when it comes to global taxation .

But don't believe me believe the world. Just look at the voting results it speaks for itself. The majority of the world has spoken and left the OECD and west out in the cold.



I am not a UK citizen but left years ago for same reason after a short spell. The writing was on the wall even as a non-dom. Taxes have gone up and non-dom scheme may be cancelled if Labour come to power following their last failed bid to scrap it under the Conservatives.

Democracy doesn't really exist in the grand scheme of things. It's just a little game where countries vote their "leaders", etc., but the real rules are set by the minority that control the majority of the wealth.

A recent example: when the IMF told UAE to add taxes, UAE added taxes. Very simple.

 

[Martin Everson]

OECD countries generate around 90% of the world’s GDP. Money talks bullsh…t walks

Start walking then my friend. China alone is 18% of global GDP.....lol. Not sure why you made up 90% out of thin air....lol.


https://www.macrotrends.net/countries/OED/oecd-members/gdp-gross-domestic-product

Similar Country Ranking
Country Name	GDP ( Billions of US $)
World	$100,562.01B
OECD members	$59,596.54B
East Asia & Pacific	$30,655.25B
North America	$27,610.09B
European Union	$16,641.39B
Euro Area	$14,040.89B
Latin America & Caribbean	$6,246.62B
South Asia	$4,361.63B
Sub-Saharan Africa	$2,047.35B

 

[lacomaco]

Start walking then my friend. China alone is 18% of global GDP.....lol. Not sure why you made up 90% out of thin air....lol.


https://www.macrotrends.net/countries/OED/oecd-members/gdp-gross-domestic-product

Country Name	GDP ( Billions of US $)
Similar Country Ranking
World	$100,562.01B
OECD members	$59,596.54B
East Asia & Pacific	$30,655.25B
North America	$27,610.09B
European Union	$16,641.39B
Euro Area	$14,040.89B
Latin America & Caribbean	$6,246.62B
South Asia	$4,361.63B
Sub-Saharan Africa	$2,047.35B

You are right, I looked at a wrong table… On the other hand even non-member countries such as China and India gladly accepted automatic information exchange and BEPS - so this UN vote for me is just simply meaningless

 

[Martin Everson]

You are right, I looked at a wrong table… On the other hand even non-member countries such as China and India gladly accepted automatic information exchange and BEPS - so this UN vote for me is just simply meaningless

Again I dont think you know what the adopted resolution actually means. You seem to be uninformed about today's reality in relation to it but anyway lets leave it at that.

 

[lacomaco]

Again I dont think you know what the adopted resolution actually means. You seem to be uninformed about today's reality in relation to it but anyway lets leave it at that.

Maybe it would be better for me if I disregard your slight insult that I am uninformed by confirming amongst others that 1. Worked in Geneva at a representation to the UN 2. Worked as advisor for the Seychelles government to develop its offshore sector in 1993 3. Followed how the UN wants to grab the supervision of international tax matters etc for the last 55 years and especially now from the OECD 4. I actually read the resolution... Etc etc But yes, let's talk about this vote and I would like to ask something: what is your guess - when will the impotent UN take over, legislate and enact really working enforcement of international tax legislation? Ten years, twenty? When do you expect nearly all UN members to ratify the who knows which version of this treaty? Base Erosion is working well, in fact developing countries could get now more than previously because of the minimum 15% tax? So what can the UN add? My guess is higher withholding taxes... Anyway, I do not care too much about what would happen in 20 years when (IF) this new treaty would work worldwide, it is enough for me if I can plan for 5 years. I think it is simply a pure bureauctic power fight. Looking at the proposals in front of the current session (Israel and the Golan, conflict-free region of the Indian Ocean (with India, China and the US haha), nuclear-free Middle East haha) you could have a feeling about the power of the UN. Anyway, here is the link to how the UN tax treaty stands, probably you saw that also https://www.un.org/esa/ffd/wp-content/uploads/2018/05/MDT_2017.pdf

 

[Martin Everson]

 

[tyrexoid]

The best option for you would be Polish IP Box at 5% tax if you qualify.

The next best option would probably be Malta's resident non domiciled company where you pay 5000€ tax year if foreign sourced income is over 35K (which is your case) + don't remember exactly how much on any sum remitted to Malta. You have to like island lifestyle.

There is Romania at 1% CIT up to 500K / year turnover + 8% dividends distribution but they are costantly changing rules.

Then there's UAE at 9% but you have to like the place.

At 12.5% there's Cyprus but you have to like island lifestyle.

Those are the first that come to mind, then there are 0% options more in the gray zone that involve creating usually a US LLC and taking tax residency in Panama, Paraguay or Thailand (without remitting anything in Thailand) where you rely on those countries not enforcing PE rules.

Montenegro 0% digital nomad visas will remain active until 2025, though I have a call Monday with a local adviser who I'll ask questions in detail about reality on the ground, but considering this is in the middle of Europe, 1hr flight away from many good places for vacation (if MNE is not vacation-vibe enough), is very lucrative short term. But that's just for remote employed nomads, not self employed (the self employed are at 15% rate, still not bad).

 

[DeepDrilling]

Nope perfectly happy with my zero tax situation .

do you want to share how you do it? You don't make money and for that pay only 0% ?

 

[Martin Everson]

do you want to share how you do it?

Sure. I live in the Bahamas.

 

[EliasIT]

Montenegro 0% digital nomad visas will remain active until 2025, though I have a call Monday with a local adviser who I'll ask questions in detail about reality on the ground, but considering this is in the middle of Europe, 1hr flight away from many good places for vacation (if MNE is not vacation-vibe enough), is very lucrative short term. But that's just for remote employed nomads, not self employed (the self employed are at 15% rate, still not bad).

Could you walk me through how you would do this exatly, I mean be a 0% tax payer in Montenegro but stay some nice place in a different country ?

 

[scooterguy]

Sure. I live in the Bahamas.

That's what Shakira said.

 

[Konstanz]

That's what Shakira said.

Why you don't believe someone could live in Bahamas?

 

[scooterguy]

Why you don't believe someone could live in Bahamas?

That's also what Shakira said!

ps: I'm just kidding. Living (for real) in the Bahamas is a great achievement, and a great way to forget about the taxman.

 

[uranium]

That's also what Shakira said!

ps: I'm just kidding. Living (for real) in the Bahamas is a great achievement, and a great way to forget about the taxman.

Was looking into bahamas recently and I read it is not that safe and crimes increased in recent years. Maybe some members who live there can confirm
Between Bahamas and cayman islands what you would you pick ?
How is Bahamas banking going? Is it as hard as cayman islands?

 

[Martin Everson]

Was looking into bahamas recently and I read it is not that safe and crimes increased in recent years. Maybe some members who live there can confirm

Yup crime is here indeed.

ps: I'm just kidding. Living (for real) in the Bahamas is a great achievement, and a great way to forget about the taxman.

I am Bahamian national not an immigrant or CBI btw

Between Bahamas and cayman islands what you would you pick ?

Cayman as they have no taxes whatsoever. Bahamas has some taxes such as property taxes etc.

How is Bahamas banking going?

I don't bank here other than for local needs. I would not recommend it at all as its expensive and let me know what you local bank will think when they see a 6 figure wire from the Bahamas....lol.

Is it as hard as cayman islands?

About the same if your a non-resident. There is however no value proposition for banking in the Caribbean in 2023. Banks here are slow, clunky and expensive.

 

[Tomy223]

Yup crime is here indeed.




I am Bahamian national not an immigrant or CBI btw



Cayman as they have no taxes whatsoever. Bahamas has some taxes such as property taxes etc.



I don't bank here other than for local needs. I would not recommend it at all as its expensive and let me know what you local bank will think when they see a 6 figure wire from the Bahamas....lol.



About the same if your a non-resident. There is however no value proposition for banking in the Caribbean in 2023. Banks here are slow, clunky and expensive.

Out of interest, How you deal with crime?

 

[Martin Everson]

Out of interest, How you deal with crime?

Never experienced any so far....touch wood .

We have a high murder rate (128) for our population size but not by international standards. If you look at the 2022 report below you can find out more about crime in Bahamas. Most people who live here may never experience crime as Bahamas is made up of over 2,000 islands and islets. You would have to be very unlucky to be a victim of crime here. But armed home invasion is the one that worries me most but where I live I am safe from that .

https://royalbahamaspolice.org/statistics/2022AnnualReport.pdf
P.S Lets keep to thread topic please.

 

[koohl]

https://royalbahamaspolice.org/statistics/2022AnnualReport.pdf

That's you on page 8 - I knew it is you

 

[OCT2023]

I don't bank here other than for local needs. I would not recommend it at all as its expensive and let me know what you local bank will think when they see a 6 figure wire from the Bahamas....lol.

About the same if your a non-resident. There is however no value proposition for banking in the Caribbean in 2023. Banks here are slow, clunky and expensive.

How about establishing a corporation in the Bahamas and living in a Territorial Tax country? What banking do you recommend for a Bahamian Corporation?

 

[pieceofmind]

Territorial tax is not as great as it seems, of course better than not. But because Controlled Foreign Corporation (CFC) and Permenant Establishment (PE) tax rules, foreign sourced income means you can’t work on your business from the territorial tax country or local tax rules kick in. That means, technically cannot talk to clients, manage employees, do trades, consult, etc etc etc. It’s mostly for passive income businesses or dividends or investments working for you outside the territorial tax country. That works great for some but not the majority who work for money in some way. I’m not sure if that rule applies to all territorial tax countries but so far I haven’t found any that works the way we’d want it (remote work).