Re:Yellen calls for a global minimum corporate tax rate
by dkjaudyeqooe on Monday April 05, 2021 @04:12PM
(#26704028)
No because I have no corporate entity in Monaco, it's strictly a US company and I am sole shareholder. Monaco doesn't tax US companies unless they do business there.
Re:Yellen calls for a global minimum corporate tax rate
by nodamage on Monday April 05, 2021 @04:28PM
(#26704247)
If you lived in Monaco and operated your business from there presumably that would trigger a nexus requirement for "doing business there"?
Re:Yellen calls for a global minimum corporate tax rate
by dkjaudyeqooe on Monday April 05, 2021 @06:26PM
(#26705433)
No, the business has to be resident, which means it has an office there or sells locally. A resident shareholder or employee doesn't count. Monaco goes out of its way not to tax its residents, other than VAT on local purchases.
So, the government of Monaco would tax the corporate profit from Year 3 onward, assuming your genius SaaS is a startup, at a rate of at least 25%. You wouldn't evade taxes altogether.
For the corporate tax, you'd either convert to Euros to pay taxes (at which point, your USDs flow back into the international monetary system that eventually leads back to Uncle Sam), or you'd pay in USDs, and the government of monaco would do the same dance.
But, you'd get 75%ish tax-free USDs, to pay yourself an untaxed salary with! That's a good amount.
[1]: https://en.service-public-entreprises.gouv.mc/Tax/Other-taxe...