What kind of taxes do you pay from your domain business?

[Mahouni]

Monstrous ROIs% from your domain business? What kind of taxes do you pay from your revenue in your country? Anyone with 0% structures?

Has anyone pulled Schillings and moved to another country? What about offshore companies? Please pm if you know a reliable offshore services provider.

Those who dare: Post type of company(Ltd, LLC, INC, IBC), formation country and avarage tax percentage. Name of the company is not necessary.

Just interesting see who gets to keep the most and where...

I haven't incorporated yet.

 

[Stian]

I haven't started paying tax yet, but then again I haven't withdrawn any profits yet, only reinvested. I am meeting with my accountant this month to get my new company started and I assume I will pay around 40% of the profit after all expenses have been deducted. The clue is to get as many transactions deducted as possible I think.

 

[Dale Hubbard]

This is a very complex subject, so I'll narrow it right down:

1. Good offshore is a BVI Limited entity.

2. Buy your IP (domains) with THAT company.

3. Pay a very low leaseback for the domains and declare revenue you make (repatriate) in your own country as taxable income. If you have a huge ROI from parking, then take only what you need, and keep the rest in your offshore account.

4. If you sell and make a huge ROI via a capital gain (sale), keep the money offshore.

5. Get on an areoplane and buy property overseas through your offshore company.

6. Have your offshore held in trust.

7. Or a combination of the above - i.e., see an accountant.

8. Never lie to your tax authority.

9. Some ATMs have cameras

 

[Mahouni]

I'm almost at exact position as you are. Except that sums I'm moving now are way too big to handle from personal account. I think it's getting some heat from the tax man. Looking for options and consulting every possible party.

 

[Stian]

Or just keep withdrawing cash from your PayPal to your bank account and see how long you can be ballin' before the authorities come knockin'

 

[Mahouni]

aZooZa: Yep that's almost that I've been advised to do, except my country wants to tax the offshore company as my personal income and holdings. So if I do that I must go the Ski mask way Okay maybe not but hoody atleast.. Damn I love ATMs...

 

[Dale Hubbard]

Tip: Your average accountant won't know this in depth. I had to tell mine what to do after doing my own research. If you are handling large sums, get a qualified guy that knows his offshore stuff, not the CPA down the road. Remember, if you're going to repatriate funds, you're going to pay tax. Period.

 

[Mahouni]

Or just keep withdrawing cash from your PayPal to your bank account and see how long you can be ballin' before the authorities come knockin'

But the problem is that I mainly resell and my profits come in big chunks I've gotten away with it by buying always same time as selling and switching it in escrow service. Now the snowball has gotten so big that... Well you kinda get it. Probably not the best place to get tax advice. Public forum I mean.

 

[Dale Hubbard]

aZooZa: Yep that's almost that I've been advised to do, except my country wants to tax the offshore company as my personal income and holdings. So if I do that I must go the Ski mask way Okay maybe not but hoody atleast.. Damn I love ATMs...

Generally, you can't be taxed on income you don't bring into your country, from a company that's owned by trustees. In BVI, the local tax rate was 0% when I last did this. Let your trustees (that's you) make offshore investments and enjoy the tax-free benefits that arise ONLY from income you don't bring home.

But the problem is that I mainly resell and my profits come in big chunks I've gotten away with it by buying always same time as selling and switching it in escrow service. Now the snowball has gotten so big that... Well you kinda get it. Probably not the best place to get tax advice. Public forum I mean.

This is not the smart way to do things. See a qualified CPA.

 

[draggar]

I'm going to bookmark this thread for next year. I made absolutely nothing last year in revenue (well, maybe $2) and nothing was cashed out.

But, in the past year I've gained a lot of experience and I'm sure 2008 will bring in more income. Not enough to live off of but enough to be able to expand myself (little by little).

I'm sure this thread will come in handy next year.

 

[Mahouni]

Except that my country has a separate law to tax companies as personal income in foreign countries if its mainly owned and controlled by a citizen of my country and it's tax percent is lower than ours. This is new to me too, heard it today from a guy specialised in this field.

The thread wasn't even started to get tax consultation but to compare tax laws in different countries.

 

[Tim Schoon]

just turned 18, now I have to pay tax.. the gd thing is: I'm still at school so I can ask everything back

I love Holland!

 

[Theo]

Except that my country has a separate law to tax companies as personal income in foreign countries if its mainly owned and controlled by a citizen of my country and it's tax percent is lower than ours. This is new to me too, heard it today from a guy specialised in this field.

The thread wasn't even started to get tax consultation but to compare tax laws in different countries.

What is your country? In the US you pay taxes on your worldwide income, there are some exceptions if you are employed overseas.

 

[Mahouni]

But yeah I know 'bout IRS too cause I kinda live there 3-6 months a year.

 

[actnow]

What is your country? In the US you pay taxes on your worldwide income, there are some exceptions if you are employed overseas.

I believe if you are a U.S. citizen working abroad and earning income there,
you are exempt after 1 yr and 1 day. ???
And, it can be very complicated. If it is a U.S. company, if you return periodically,
where the money is paid, etc, etc ??

And, I believe it is on our tax form (IRS) that you have to disclose
if you have bank accts outside of the U.S. (Business and personal filings)

The U.S. govt are monitoring transactions coming in and out of U.S. bank
accts involving foreign locations.

They are looking for tax invasion, drug money and terrorist funding.

If you are a U.S. corp, you can read NameMedia's S-1 and see how they are
handling domain accounting. It is slightly complicated.

 

[Mahouni]

I'm not US citizen, although I could get my self that status. So I don't have to worry bout IRS, but we got our own cons in our taxation system. No pros though

 

[asahi]

I recommend an IBC from Seychelles Islands, a low cost tax haven (less than BVI or Panama).

Or, if you reside outside USA, a Delaware LLC with offshore bank account. (In lithuania eg)

 

[leo]

Or Easiest Come to Dubai 100% TAX Free!

 

[Mahouni]

Yeah I know! But I think I have to live there 3 years before getting off from my governments tax net!

 

[Focus]

Question : would you deduct the total upfront expense of a domain purchase against parking revenue earned that year or would it be amoritized (broken up) over time? Any thoughts on this and the overall do's and don'ts when deducting expenses related to domaining? What really throws me off is that any "domain name" is really just being rented thru the registry and requires an annual registration fee to keep it, so even if you did pay 10k, 20k, etc for it up front, it's still just a virtual service and not "physical property"..but if you buy it for parking revenue & profit and not for name resale how does that work out? Do you have options on how to categorize/claim it when doing the ytd expenses?