Topic: Reduce your TAX Liability (Read 386 times)
The Ministry of Finance plans to tax cryptocurrency transactions such as bitcoin among investors in my country, although it is still being reviewed and I will not deny it because it is an obligation for us as a society as long as the government provides policies that are taken also accompanied by security for us in crypto transactions without any restrictions
Indeed, two options seem to be the simplest and most attractive: 1) move and create a company or your own private business related to cryptocurrency in a country where the rate is lower and it is legal. 2) find people who have been doing this for more than a year - they have already gone through all these steps and solved similar issues and problems for themselves. I do not think that such people will charge you money simply by answering your questions. A community exists to share experiences and help each other. Before spending money on consultants, just talk to competent people on the Internet.
I think ,you was totally disappointed by paying tax.When bitcoin was legalized in my country and I had paid my first tax for cryptocurrency trade.Same I had feel.Because why should we pay tax,which is earned by our hard work.When the tax was keep pending,it will leads to high liability for us.But legalized of bitcoin was a good for huge traders.
Quote
BECOME A CITIZEN OF THE WORLD - STRATEGIES: SECOND RESIDENCY AND SECOND PASSPORT
Quote
MOVE YOUR MONEY TO A SAFE PLACE - STRATEGIES: OFFSHORE BANKING, OFFSHORE GOLD STORAGE
Quote
WHO WE HELP: GLOBALLY-MOBILE HIGH EARNERS
My serious suggestion to you my friend, is that don't get into these methods. I've listed few reasons why:
- Governments now have global exchange of information. Your bank accounts in other countries maybe revealed tomorrow to your government and at that point in time they might chase you for not just the tax but also for penalties
- Many countries have stricter rules for transactions or actions that are solely done for the purpose of avoiding taxes. In absence of business rationale, the tax departments can "pierce the veil" and if found that it was merely to avoid taxes, it could land you in deep trouble.
- The OECD is coming up with BEPS 2.0 wherein the Pillar 2 lays down the provisions for Global Tax base erosion laws. It suggests that if an income is taxed below a minimum threshold in the source country, the country where you are resident can fully tax those earnings.
- These schemes maybe scams in themselves (I am not an authority on this) and could be set up only to steal your bitcoins.
- Non-payment of taxes will tarnish the image of crypto holders and this could tilt the governments' view across the globe to ban cryptocurrencies, which is something that we want to avoid at all cost (be it by payment of taxes)
If you purchased crypto at different prices, one strategy is to sell the coins with the least appreciation first.
Are you sure there are still loopholes? In his first Presidential campaign Trump tweeted:
“I know our complex tax laws better than anyone who has ever run for president and am the only one who can fix them,”
The Tax code was updated after he was elected, so the loopholes are closed now, right?
In all seriousness, for off shore companies, you have to also be aware of the Controlled Foreign Corporation rules- https://www.irs.gov/irm/part4/irm_04-061-007
US tax laws are so complex and far reaching, that you have to be able to spend a lot of time and money to legally avoid taxes.
You stated: "You hold cryptocurrency which has appreciated in value, and you wish to sell that cryptocurrency."
therefore you miss the most important premise in reducing or avoiding taxes all together. "YOU" are subject to whatever taxing authority in the jurisdiction you are legally connected to. As I stated if a company is in a jurisdiction that taxes crypto profits a 0% (yes they do exist) then the company or person owes not taxes. This is uses by companies all over the planet to reduce taxes to zero even thought they operate in the USA or other similar taxing jurisdiction. As an example there are hundreds of hedge funds in Connecticut, USA that have offices their and employ thousands of individuals to work in said offices. But they all LEGALLY and for TAX PURPOSES reside in the Cayman, Islands at the exact same address.
Why? because they paid politicians to have inserted in the IRS code an exemption that reduces their US tax liability to ZERO in many cases.
There are hundreds of exemptions like this in the USA IRS code and there is no reason why Americans should not take advantage of every exemption offered.
therefore you miss the most important premise in reducing or avoiding taxes all together. "YOU" are subject to whatever taxing authority in the jurisdiction you are legally connected to. As I stated if a company is in a jurisdiction that taxes crypto profits a 0% (yes they do exist) then the company or person owes not taxes. This is uses by companies all over the planet to reduce taxes to zero even thought they operate in the USA or other similar taxing jurisdiction. As an example there are hundreds of hedge funds in Connecticut, USA that have offices their and employ thousands of individuals to work in said offices. But they all LEGALLY and for TAX PURPOSES reside in the Cayman, Islands at the exact same address.
Why? because they paid politicians to have inserted in the IRS code an exemption that reduces their US tax liability to ZERO in many cases.
There are hundreds of exemptions like this in the USA IRS code and there is no reason why Americans should not take advantage of every exemption offered.
We are all interested in a tax outcome which reduces our wealth by the least amount legally possible. This much I grant you, and in accordance with this you are responsible for doing your own personal research concerning the applicable tax code.
You hold cryptocurrency which has appreciated in value, and you wish to sell that cryptocurrency. You purchased it in a particular jurisdiction, and you expect to sell it in that same jurisdiction. The tax authorities of that jurisdiction prove that they are entitled to a 33% tax as a result your capital gain in accordance with applicable laws, which calculation is based on the amount of profit rather than the amount of sale. Note that this is not exactly unfair, given that you did nothing more than purchase a digital currency which appreciated in value in a manner unrelated to your actions, and that your purchase and sale of that currency was protected by the applicable laws of that tax jurisdiction.
You appear to be under the misimpression that by squinting hard enough at the tax code, you might find some clause which says "notwithstanding anything contained herein, Recipient may waive any and all tax liability associated with this transaction by standing naked in the middle of a large wheat field at midnight and shouting to the heavens, 'I hereby waive all tax liability!'". Sadly, such evasions are not available. If you attempt to evade taxes that you unambiguously owe, you will be liable to criminal penalties.
That said, while you can't change your tax liabilities retroactively (which is what you appear to be trying to do here), you can make decisions which will have an effect on your tax liabilities going forward.
Here's the first and most obvious point: What if you don't sell any crypto? If you need cash, you don't need to sell. You only need to take out a cash loan, collateralized by your crypto holdings. I'm not saying this solves everything, but it will change the tax analysis. I am unclear as to why the others in this thread haven't suggested this already.
If that simple and obvious solution does not appeal to you, be aware of the following caveats:
Changing your residency to a different jurisdiction may have the effect of changing your tax liabilities *going forward*. However, this change of jurisdiction will only apply if you can prove that your residency actually changed. Thus, you must consider all aspects of moving to a different jurisdiction before making the move, not just the tax consequences. If you move to Malaysia, you might incur fewer taxes in connection with your crypto-trading, but you may also have to pay for private security forces (instead of the free police protection you are accustomed to), among other novel expenses.
On the other hand, the suggestion has been made in this thread that you may be able to take advantage of a foreign jurisdiction's tax policies while neither residing there nor conducting business there, by way of a "shell" corporation. To the extent such (shell) corporation may be legally recognized (not something I would guarantee), prior posters on this thread have been extremely unclear as to how you may be expected to recover funds from this (shell) corporation. Hint: such recovery will involve bringing the assets or currency back to your resident jurisdiction, at which point the tax liability of your current jurisdiction goes into effect as usual. While offshoring may provide some benefits to some legitimate domestic corporations (by virtue of their ability to legitimately confine certain aspects of their supply chain to particular tax jurisdictions), the shenanigans suggested in this thread will not.
Oh, and if you're still considering using "shell" or similar corporations for the purpose of avoiding taxes, read up on the concept of "piercing the corporate veil". You might be surprised by what you learn.
You hold cryptocurrency which has appreciated in value, and you wish to sell that cryptocurrency. You purchased it in a particular jurisdiction, and you expect to sell it in that same jurisdiction. The tax authorities of that jurisdiction prove that they are entitled to a 33% tax as a result your capital gain in accordance with applicable laws, which calculation is based on the amount of profit rather than the amount of sale. Note that this is not exactly unfair, given that you did nothing more than purchase a digital currency which appreciated in value in a manner unrelated to your actions, and that your purchase and sale of that currency was protected by the applicable laws of that tax jurisdiction.
You appear to be under the misimpression that by squinting hard enough at the tax code, you might find some clause which says "notwithstanding anything contained herein, Recipient may waive any and all tax liability associated with this transaction by standing naked in the middle of a large wheat field at midnight and shouting to the heavens, 'I hereby waive all tax liability!'". Sadly, such evasions are not available. If you attempt to evade taxes that you unambiguously owe, you will be liable to criminal penalties.
That said, while you can't change your tax liabilities retroactively (which is what you appear to be trying to do here), you can make decisions which will have an effect on your tax liabilities going forward.
Here's the first and most obvious point: What if you don't sell any crypto? If you need cash, you don't need to sell. You only need to take out a cash loan, collateralized by your crypto holdings. I'm not saying this solves everything, but it will change the tax analysis. I am unclear as to why the others in this thread haven't suggested this already.
If that simple and obvious solution does not appeal to you, be aware of the following caveats:
Changing your residency to a different jurisdiction may have the effect of changing your tax liabilities *going forward*. However, this change of jurisdiction will only apply if you can prove that your residency actually changed. Thus, you must consider all aspects of moving to a different jurisdiction before making the move, not just the tax consequences. If you move to Malaysia, you might incur fewer taxes in connection with your crypto-trading, but you may also have to pay for private security forces (instead of the free police protection you are accustomed to), among other novel expenses.
On the other hand, the suggestion has been made in this thread that you may be able to take advantage of a foreign jurisdiction's tax policies while neither residing there nor conducting business there, by way of a "shell" corporation. To the extent such (shell) corporation may be legally recognized (not something I would guarantee), prior posters on this thread have been extremely unclear as to how you may be expected to recover funds from this (shell) corporation. Hint: such recovery will involve bringing the assets or currency back to your resident jurisdiction, at which point the tax liability of your current jurisdiction goes into effect as usual. While offshoring may provide some benefits to some legitimate domestic corporations (by virtue of their ability to legitimately confine certain aspects of their supply chain to particular tax jurisdictions), the shenanigans suggested in this thread will not.
Oh, and if you're still considering using "shell" or similar corporations for the purpose of avoiding taxes, read up on the concept of "piercing the corporate veil". You might be surprised by what you learn.
Are you sure there are still loopholes? In his first Presidential campaign Trump tweeted:
“I know our complex tax laws better than anyone who has ever run for president and am the only one who can fix them,”
The Tax code was updated after he was elected, so the loopholes are closed now, right?
In all seriousness, for off shore companies, you have to also be aware of the Controlled Foreign Corporation rules- https://www.irs.gov/irm/part4/irm_04-061-007
US tax laws are so complex and far reaching, that you have to be able to spend a lot of time and money to legally avoid taxes.
You stated: "You hold cryptocurrency which has appreciated in value, and you wish to sell that cryptocurrency."
therefore you miss the most important premise in reducing or avoiding taxes all together. "YOU" are subject to whatever taxing authority in the jurisdiction you are legally connected to. As I stated if a company is in a jurisdiction that taxes crypto profits a 0% (yes they do exist) then the company or person owes not taxes. This is uses by companies all over the planet to reduce taxes to zero even thought they operate in the USA or other similar taxing jurisdiction. As an example there are hundreds of hedge funds in Connecticut, USA that have offices their and employ thousands of individuals to work in said offices. But they all LEGALLY and for TAX PURPOSES reside in the Cayman, Islands at the exact same address.
Why? because they paid politicians to have inserted in the IRS code an exemption that reduces their US tax liability to ZERO in many cases.
There are hundreds of exemptions like this in the USA IRS code and there is no reason why Americans should not take advantage of every exemption offered.
therefore you miss the most important premise in reducing or avoiding taxes all together. "YOU" are subject to whatever taxing authority in the jurisdiction you are legally connected to. As I stated if a company is in a jurisdiction that taxes crypto profits a 0% (yes they do exist) then the company or person owes not taxes. This is uses by companies all over the planet to reduce taxes to zero even thought they operate in the USA or other similar taxing jurisdiction. As an example there are hundreds of hedge funds in Connecticut, USA that have offices their and employ thousands of individuals to work in said offices. But they all LEGALLY and for TAX PURPOSES reside in the Cayman, Islands at the exact same address.
Why? because they paid politicians to have inserted in the IRS code an exemption that reduces their US tax liability to ZERO in many cases.
There are hundreds of exemptions like this in the USA IRS code and there is no reason why Americans should not take advantage of every exemption offered.
We are all interested in a tax outcome which reduces our wealth by the least amount legally possible. This much I grant you, and in accordance with this you are responsible for doing your own personal research concerning the applicable tax code.
You hold cryptocurrency which has appreciated in value, and you wish to sell that cryptocurrency. You purchased it in a particular jurisdiction, and you expect to sell it in that same jurisdiction. The tax authorities of that jurisdiction prove that they are entitled to a 33% tax as a result your capital gain in accordance with applicable laws, which calculation is based on the amount of profit rather than the amount of sale. Note that this is not exactly unfair, given that you did nothing more than purchase a digital currency which appreciated in value in a manner unrelated to your actions, and that your purchase and sale of that currency was protected by the applicable laws of that tax jurisdiction.
You appear to be under the misimpression that by squinting hard enough at the tax code, you might find some clause which says "notwithstanding anything contained herein, Recipient may waive any and all tax liability associated with this transaction by standing naked in the middle of a large wheat field at midnight and shouting to the heavens, 'I hereby waive all tax liability!'". Sadly, such evasions are not available. If you attempt to evade taxes that you unambiguously owe, you will be liable to criminal penalties.
That said, while you can't change your tax liabilities retroactively (which is what you appear to be trying to do here), you can make decisions which will have an effect on your tax liabilities going forward.
Here's the first and most obvious point: What if you don't sell any crypto? If you need cash, you don't need to sell. You only need to take out a cash loan, collateralized by your crypto holdings. I'm not saying this solves everything, but it will change the tax analysis. I am unclear as to why the others in this thread haven't suggested this already.
If that simple and obvious solution does not appeal to you, be aware of the following caveats:
Changing your residency to a different jurisdiction may have the effect of changing your tax liabilities *going forward*. However, this change of jurisdiction will only apply if you can prove that your residency actually changed. Thus, you must consider all aspects of moving to a different jurisdiction before making the move, not just the tax consequences. If you move to Malaysia, you might incur fewer taxes in connection with your crypto-trading, but you may also have to pay for private security forces (instead of the free police protection you are accustomed to), among other novel expenses.
On the other hand, the suggestion has been made in this thread that you may be able to take advantage of a foreign jurisdiction's tax policies while neither residing there nor conducting business there, by way of a "shell" corporation. To the extent such (shell) corporation may be legally recognized (not something I would guarantee), prior posters on this thread have been extremely unclear as to how you may be expected to recover funds from this (shell) corporation. Hint: such recovery will involve bringing the assets or currency back to your resident jurisdiction, at which point the tax liability of your current jurisdiction goes into effect as usual. While offshoring may provide some benefits to some legitimate domestic corporations (by virtue of their ability to legitimately confine certain aspects of their supply chain to particular tax jurisdictions), the shenanigans suggested in this thread will not.
Oh, and if you're still considering using "shell" or similar corporations for the purpose of avoiding taxes, read up on the concept of "piercing the corporate veil". You might be surprised by what you learn.
You hold cryptocurrency which has appreciated in value, and you wish to sell that cryptocurrency. You purchased it in a particular jurisdiction, and you expect to sell it in that same jurisdiction. The tax authorities of that jurisdiction prove that they are entitled to a 33% tax as a result your capital gain in accordance with applicable laws, which calculation is based on the amount of profit rather than the amount of sale. Note that this is not exactly unfair, given that you did nothing more than purchase a digital currency which appreciated in value in a manner unrelated to your actions, and that your purchase and sale of that currency was protected by the applicable laws of that tax jurisdiction.
You appear to be under the misimpression that by squinting hard enough at the tax code, you might find some clause which says "notwithstanding anything contained herein, Recipient may waive any and all tax liability associated with this transaction by standing naked in the middle of a large wheat field at midnight and shouting to the heavens, 'I hereby waive all tax liability!'". Sadly, such evasions are not available. If you attempt to evade taxes that you unambiguously owe, you will be liable to criminal penalties.
That said, while you can't change your tax liabilities retroactively (which is what you appear to be trying to do here), you can make decisions which will have an effect on your tax liabilities going forward.
Here's the first and most obvious point: What if you don't sell any crypto? If you need cash, you don't need to sell. You only need to take out a cash loan, collateralized by your crypto holdings. I'm not saying this solves everything, but it will change the tax analysis. I am unclear as to why the others in this thread haven't suggested this already.
If that simple and obvious solution does not appeal to you, be aware of the following caveats:
Changing your residency to a different jurisdiction may have the effect of changing your tax liabilities *going forward*. However, this change of jurisdiction will only apply if you can prove that your residency actually changed. Thus, you must consider all aspects of moving to a different jurisdiction before making the move, not just the tax consequences. If you move to Malaysia, you might incur fewer taxes in connection with your crypto-trading, but you may also have to pay for private security forces (instead of the free police protection you are accustomed to), among other novel expenses.
On the other hand, the suggestion has been made in this thread that you may be able to take advantage of a foreign jurisdiction's tax policies while neither residing there nor conducting business there, by way of a "shell" corporation. To the extent such (shell) corporation may be legally recognized (not something I would guarantee), prior posters on this thread have been extremely unclear as to how you may be expected to recover funds from this (shell) corporation. Hint: such recovery will involve bringing the assets or currency back to your resident jurisdiction, at which point the tax liability of your current jurisdiction goes into effect as usual. While offshoring may provide some benefits to some legitimate domestic corporations (by virtue of their ability to legitimately confine certain aspects of their supply chain to particular tax jurisdictions), the shenanigans suggested in this thread will not.
Oh, and if you're still considering using "shell" or similar corporations for the purpose of avoiding taxes, read up on the concept of "piercing the corporate veil". You might be surprised by what you learn.
We are all interested in a tax outcome which reduces our wealth by the least amount legally possible. This much I grant you, and in accordance with this you are responsible for doing your own personal research concerning the applicable tax code.
You hold cryptocurrency which has appreciated in value, and you wish to sell that cryptocurrency. You purchased it in a particular jurisdiction, and you expect to sell it in that same jurisdiction. The tax authorities of that jurisdiction prove that they are entitled to a 33% tax as a result your capital gain in accordance with applicable laws, which calculation is based on the amount of profit rather than the amount of sale. Note that this is not exactly unfair, given that you did nothing more than purchase a digital currency which appreciated in value in a manner unrelated to your actions, and that your purchase and sale of that currency was protected by the applicable laws of that tax jurisdiction.
You appear to be under the misimpression that by squinting hard enough at the tax code, you might find some clause which says "notwithstanding anything contained herein, Recipient may waive any and all tax liability associated with this transaction by standing naked in the middle of a large wheat field at midnight and shouting to the heavens, 'I hereby waive all tax liability!'". Sadly, such evasions are not available. If you attempt to evade taxes that you unambiguously owe, you will be liable to criminal penalties.
That said, while you can't change your tax liabilities retroactively (which is what you appear to be trying to do here), you can make decisions which will have an effect on your tax liabilities going forward.
Here's the first and most obvious point: What if you don't sell any crypto? If you need cash, you don't need to sell. You only need to take out a cash loan, collateralized by your crypto holdings. I'm not saying this solves everything, but it will change the tax analysis. I am unclear as to why the others in this thread haven't suggested this already.
If that simple and obvious solution does not appeal to you, be aware of the following caveats:
Changing your residency to a different jurisdiction may have the effect of changing your tax liabilities *going forward*. However, this change of jurisdiction will only apply if you can prove that your residency actually changed. Thus, you must consider all aspects of moving to a different jurisdiction before making the move, not just the tax consequences. If you move to Malaysia, you might incur fewer taxes in connection with your crypto-trading, but you may also have to pay for private security forces (instead of the free police protection you are accustomed to), among other novel expenses.
On the other hand, the suggestion has been made in this thread that you may be able to take advantage of a foreign jurisdiction's tax policies while neither residing there nor conducting business there, by way of a "shell" corporation. To the extent such (shell) corporation may be legally recognized (not something I would guarantee), prior posters on this thread have been extremely unclear as to how you may be expected to recover funds from this (shell) corporation. Hint: such recovery will involve bringing the assets or currency back to your resident jurisdiction, at which point the tax liability of your current jurisdiction goes into effect as usual. While offshoring may provide some benefits to some legitimate domestic corporations (by virtue of their ability to legitimately confine certain aspects of their supply chain to particular tax jurisdictions), the shenanigans suggested in this thread will not.
Oh, and if you're still considering using "shell" or similar corporations for the purpose of avoiding taxes, read up on the concept of "piercing the corporate veil". You might be surprised by what you learn.
You hold cryptocurrency which has appreciated in value, and you wish to sell that cryptocurrency. You purchased it in a particular jurisdiction, and you expect to sell it in that same jurisdiction. The tax authorities of that jurisdiction prove that they are entitled to a 33% tax as a result your capital gain in accordance with applicable laws, which calculation is based on the amount of profit rather than the amount of sale. Note that this is not exactly unfair, given that you did nothing more than purchase a digital currency which appreciated in value in a manner unrelated to your actions, and that your purchase and sale of that currency was protected by the applicable laws of that tax jurisdiction.
You appear to be under the misimpression that by squinting hard enough at the tax code, you might find some clause which says "notwithstanding anything contained herein, Recipient may waive any and all tax liability associated with this transaction by standing naked in the middle of a large wheat field at midnight and shouting to the heavens, 'I hereby waive all tax liability!'". Sadly, such evasions are not available. If you attempt to evade taxes that you unambiguously owe, you will be liable to criminal penalties.
That said, while you can't change your tax liabilities retroactively (which is what you appear to be trying to do here), you can make decisions which will have an effect on your tax liabilities going forward.
Here's the first and most obvious point: What if you don't sell any crypto? If you need cash, you don't need to sell. You only need to take out a cash loan, collateralized by your crypto holdings. I'm not saying this solves everything, but it will change the tax analysis. I am unclear as to why the others in this thread haven't suggested this already.
If that simple and obvious solution does not appeal to you, be aware of the following caveats:
Changing your residency to a different jurisdiction may have the effect of changing your tax liabilities *going forward*. However, this change of jurisdiction will only apply if you can prove that your residency actually changed. Thus, you must consider all aspects of moving to a different jurisdiction before making the move, not just the tax consequences. If you move to Malaysia, you might incur fewer taxes in connection with your crypto-trading, but you may also have to pay for private security forces (instead of the free police protection you are accustomed to), among other novel expenses.
On the other hand, the suggestion has been made in this thread that you may be able to take advantage of a foreign jurisdiction's tax policies while neither residing there nor conducting business there, by way of a "shell" corporation. To the extent such (shell) corporation may be legally recognized (not something I would guarantee), prior posters on this thread have been extremely unclear as to how you may be expected to recover funds from this (shell) corporation. Hint: such recovery will involve bringing the assets or currency back to your resident jurisdiction, at which point the tax liability of your current jurisdiction goes into effect as usual. While offshoring may provide some benefits to some legitimate domestic corporations (by virtue of their ability to legitimately confine certain aspects of their supply chain to particular tax jurisdictions), the shenanigans suggested in this thread will not.
Oh, and if you're still considering using "shell" or similar corporations for the purpose of avoiding taxes, read up on the concept of "piercing the corporate veil". You might be surprised by what you learn.
There is also a strategy of creating "A Shell Corporation"
This is basically an address in a favourable country which allow such businesses.
The Shell Corporation doesnt actually trade or have employees. I need to look
into this some more to figure out if anyone can have a Shell Corporation.
aoluain Holdings
Here is a list of countries where a Shell Corporation can be created.
This is basically an address in a favourable country which allow such businesses.
The Shell Corporation doesnt actually trade or have employees. I need to look
into this some more to figure out if anyone can have a Shell Corporation.
aoluain Holdings
A shell corporation is a corporation without active business operations or significant assets. These types of corporations are not all necessarily illegal,
Quote
shell corporations act as tax avoidance vehicles for legitimate businesses, as is the case with Apple's corporate entities based in the United Kingdom.
Quote
The number one reason for a domestic company to set up a shell company is to realize a tax haven abroad.
Here is a list of countries where a Shell Corporation can be created.
Typical countries of domicile of shell companies are offshore financial centers like Ireland, Liechtenstein, Luxemburg, Switzerland, Isle of Man, and the Channel Islands including Guernsey and Jersey in Europe, Bahamas, Barbados, Bermuda, Cayman Islands, and Virgin Islands in the Caribbean, Panama in Central America, and Hong Kong and Singapore in Asia. Shell companies are usually offered by law firms based in those countries.[8] The process of establishing a shell company can sometimes be done very quickly online.[9]
Indeed, two options seem to be the simplest and most attractive: 1) move and create a company or your own private business related to cryptocurrency in a country where the rate is lower and it is legal. 2) find people who have been doing this for more than a year - they have already gone through all these steps and solved similar issues and problems for themselves. I do not think that such people will charge you money simply by answering your questions. A community exists to share experiences and help each other. Before spending money on consultants, just talk to competent people on the Internet.
The "huge corporations" are only taking advantage of the laws they had put in the IRS code for their benefit and anybody else lucky enough to come across the information (usually through a tax attorney).
They can be very complex and some a so simple I often wonder why more people don't do it.
To make a point, in the USA corporations are equal to humans in law. But I say they are even better because you can move your corporation, trust, LLC or whatever to any legal jurisdiction on planet earth. Like a human would move to another country. Except one huge difference. Once your company resides in a crypto friendly jurisdiction then you begin to comply with their tax laws and you are no longer subject to IRS taxes. Americans are always subject to IRS and all other laws and regulations as long as they live and wherever on planet they may be.
My companies reside in a jurisdiction that taxes any crytpo profits at 0% as long as it is incurred in any other country on the planet or off planet as the case may be.
The companies purchased and own the crytpos so there is no tax due to America IRS authority.
So, as you can see the better method is to have your company purchase the crytpos to start and avoid the IRS all together.
this is one of the more basic strategies to minimize taxes IN THE USA.
This is free internet advice so please do consult with professionals, I can only relate my experience in this matter, which is considerable.
You’re comparing apples and oranges here !!
OP can’t employ the same methods a these US based huge corporations.
OP appears to be
1. From Europe
2. An independent/sole trader
3. Does not employ anyone
4. And so on ......
You’ve quoted the original post , but do not seem to have read it !
Anyway , hopefully you’ve gained some help from this thread , good luck with the future
They can be very complex and some a so simple I often wonder why more people don't do it.
To make a point, in the USA corporations are equal to humans in law. But I say they are even better because you can move your corporation, trust, LLC or whatever to any legal jurisdiction on planet earth. Like a human would move to another country. Except one huge difference. Once your company resides in a crypto friendly jurisdiction then you begin to comply with their tax laws and you are no longer subject to IRS taxes. Americans are always subject to IRS and all other laws and regulations as long as they live and wherever on planet they may be.
My companies reside in a jurisdiction that taxes any crytpo profits at 0% as long as it is incurred in any other country on the planet or off planet as the case may be.
The companies purchased and own the crytpos so there is no tax due to America IRS authority.
So, as you can see the better method is to have your company purchase the crytpos to start and avoid the IRS all together.
this is one of the more basic strategies to minimize taxes IN THE USA.
This is free internet advice so please do consult with professionals, I can only relate my experience in this matter, which is considerable.
You’re comparing apples and oranges here !!
OP can’t employ the same methods a these US based huge corporations.
OP appears to be
1. From Europe
2. An independent/sole trader
3. Does not employ anyone
4. And so on ......
You’ve quoted the original post , but do not seem to have read it !
Anyway , hopefully you’ve gained some help from this thread , good luck with the future
You’re comparing apples and oranges here !!
OP can’t employ the same methods a these US based huge corporations.
OP appears to be
1. From Europe
2. An independent/sole trader
3. Does not employ anyone
4. And so on ......
You’ve quoted the original post , but do not seem to have read it !
Anyway , hopefully you’ve gained some help from this thread , good luck with the future
All you have to do is employ the same methods that these companies use.
https://itep.org/55-profitable-corporations-zero-corporate-tax/
NOW, I assume you don't know what they are since you are posting here so you can hire a tax lawyer who will reduce your tax liability to zero GOING FORWARD only. Be advised they are not cheap but if you will save more then the cost then its obviously worth it.
You should have really thought about this before you invested in crypto and you would not owe any US Taxes
https://itep.org/55-profitable-corporations-zero-corporate-tax/
NOW, I assume you don't know what they are since you are posting here so you can hire a tax lawyer who will reduce your tax liability to zero GOING FORWARD only. Be advised they are not cheap but if you will save more then the cost then its obviously worth it.
You should have really thought about this before you invested in crypto and you would not owe any US Taxes
I have been actively researching how I can reduce my TAX liability in terms of Capital Gains TAX
for later on this year when I plan to sell some Crypto (Mostly Ethereum) later in the year when
Bitcoin reaches $200k. Where I live I will be liable to pay 33% of my earnings from Bitcoin at the
point where I convert Bitcoin to Euro.
I am an employee and have bee working and paying TAX for over 30 years, I really loathe having
to pay this extra 33% on my profits.
There are some people who have no problem paying TAX but I would like to avoid it if at all possible
I'm sure there are others who think the same, maybe you are alrady doing it.
The business community generally have the means to persue TAX minimalism, they have the tools
and ammunition to acheive this but for a general worker it is totaly new ground to break.
I have listed a few links from my investigations on the topic and share for discussion.
Are you ok with paying TAX on your profits?
Have you seriously considered minimising your liability?
The Nomad Capitalist
This is a company helping others reduce their TAX bills. It was started by Andrew Henderson.
Andrew provides advice on how to apply what he learned to our own situations.
From the ABOUT page there is a few clues as to how it can be done.
Top 4 countries with best offshore bank accounts for 2021
Information about what an offshore is and where they are located.
for later on this year when I plan to sell some Crypto (Mostly Ethereum) later in the year when
Bitcoin reaches $200k. Where I live I will be liable to pay 33% of my earnings from Bitcoin at the
point where I convert Bitcoin to Euro.
I am an employee and have bee working and paying TAX for over 30 years, I really loathe having
to pay this extra 33% on my profits.
There are some people who have no problem paying TAX but I would like to avoid it if at all possible
I'm sure there are others who think the same, maybe you are alrady doing it.
The business community generally have the means to persue TAX minimalism, they have the tools
and ammunition to acheive this but for a general worker it is totaly new ground to break.
I have listed a few links from my investigations on the topic and share for discussion.
Are you ok with paying TAX on your profits?
Have you seriously considered minimising your liability?
The Nomad Capitalist
This is a company helping others reduce their TAX bills. It was started by Andrew Henderson.
Andrew provides advice on how to apply what he learned to our own situations.
From the ABOUT page there is a few clues as to how it can be done.
Quote
Nomad Capitalist has personally helped hundreds of people go
offshore, keep more of their wealth, and enjoy an unprecedented level
of global freedom…
offshore, keep more of their wealth, and enjoy an unprecedented level
of global freedom…
Quote
I’ve spent the past 12 years traveling to over 100 countries, looking for and experimenting with the best places around the world to employ offshore strategies.
Quote
After over decade of research and experimentation, I’m down to a 1% tax rate.
I have multiple second citizenships (and, recently, I went through the process of renouncing my US citizenship).
I have multiple second citizenships (and, recently, I went through the process of renouncing my US citizenship).
Quote
BECOME A CITIZEN OF THE WORLD - STRATEGIES: SECOND RESIDENCY AND SECOND PASSPORT
Quote
MOVE YOUR MONEY TO A SAFE PLACE - STRATEGIES: OFFSHORE BANKING, OFFSHORE GOLD STORAGE
Quote
WHO WE HELP: GLOBALLY-MOBILE HIGH EARNERS
INVESTORS
You buy, trade, or hold location independent investments
such as Bitcoin and cryptocurrency, stocks and bonds, or forex.
INVESTORS
You buy, trade, or hold location independent investments
such as Bitcoin and cryptocurrency, stocks and bonds, or forex.
Top 4 countries with best offshore bank accounts for 2021
Information about what an offshore is and where they are located.
Quote
Table of Contents
1. An overview of offshore bank account
2. How to choose your best offshore banking jurisdiction
2.1. Reputation
2.2. Remote opening
2.3. Deposit
2.4. Processing time
2.5. Other considerations
3. Best countries to open a bank account for 2021
3.1. Switzerland – Good Choice For Asset Protection
3.2. Belize – Best Choice For Low Deposit and Remote Opening
3.3. Singapore & Hong Kong – Reputation is a key
3.4. Other offshore banking jurisdictions that may help
1. An overview of offshore bank account
2. How to choose your best offshore banking jurisdiction
2.1. Reputation
2.2. Remote opening
2.3. Deposit
2.4. Processing time
2.5. Other considerations
3. Best countries to open a bank account for 2021
3.1. Switzerland – Good Choice For Asset Protection
3.2. Belize – Best Choice For Low Deposit and Remote Opening
3.3. Singapore & Hong Kong – Reputation is a key
3.4. Other offshore banking jurisdictions that may help
When it comes to TAX I like all the terms used to avoid, evade and dodge
they all amount to the same thing!
But to your government these things are not same, you can avoid but it is a crime to evade so even if you are earning you can avoid it by knowing the strategies but never possible for a salary class people. So start your business then you will be having more money to spend because you are going to pay less taxes. they all amount to the same thing!
Totally agree Findingnemo, the business class can aviail of legal ways to
reduce the amount of TAX they pay, they also have access to financial
and legal advice from accountants and solicitors which they already have
connections with.
When it comes to TAX I like all the terms used to avoid, evade and dodge
they all amount to the same thing!
reduce the amount of TAX they pay, they also have access to financial
and legal advice from accountants and solicitors which they already have
connections with.
When it comes to TAX I like all the terms used to avoid, evade and dodge
they all amount to the same thing!
Interestingly here is an example of two good friends who managed to evade this
[its slightly off topic though]
The two elderly heterosexual men married to avoid inheritance TAX which is also 33%.
Ant this was perfectly legal !
Actual term should be avoiding not evade and every investor and business class people know how to avoid the taxes legally that is why they are getting more richer and paying less taxes than their employees.
33% tax rate even for long term capital gains? Such a ridiculous amount to be honest.
But no matter how much the rate, you are liable to pay the taxes if you bought the cryptos using exchanges where you registered using KYC but I don't want to pay 33% so I will go with p2p for 10% loss of price on long term is great deal though.
But no matter how much the rate, you are liable to pay the taxes if you bought the cryptos using exchanges where you registered using KYC but I don't want to pay 33% so I will go with p2p for 10% loss of price on long term is great deal though.
yes 33% is quite high and I believe there are lots of wealthy people availing
of the opportunities to reduce what they have to pay.
Interestingly here is an example of two good friends who managed to evade this
[its slightly off topic though]
The two elderly heterosexual men married to avoid inheritance TAX which is also 33%.
Ant this was perfectly legal !
The men, who have been good friends for almost 30 years – Mr O’Sullivan is now Mr Murphy’s carer – are both heterosexual. They have married to avoid paying inheritance tax should either of them die.
33% tax rate even for long term capital gains? Such a ridiculous amount to be honest.
But no matter how much the rate, you are liable to pay the taxes if you bought the cryptos using exchanges where you registered using KYC but I don't want to pay 33% so I will go with p2p for 10% loss of price on long term is great deal though.
But no matter how much the rate, you are liable to pay the taxes if you bought the cryptos using exchanges where you registered using KYC but I don't want to pay 33% so I will go with p2p for 10% loss of price on long term is great deal though.
Nice move buddy,
Mostly develop countries are like getting taxes from individuals who had huge earnings. If you wish to stay somewhere else then forget the taxes getting from you. What yoi should investigate instead should be the people, their traits, attitude and culture to rely on. I will start with one country that I love the most which is Japan.
Japan is considered as bitcoin friendly country but still when spending bitcoin they will get a tax from you. Yet, you will be amazed how good the Japanese people are that even in basketball substitution both incoming and outgoing players will going to bow down as sign of respect. Other than that Japan has the safest city in the world which, the Tokyo city. Low crime rates and people has the initiative. Japan is also an advance country with good technology and education.
This is just an example on how you should spend your money for your retirement. Actually it is not about good living because you have it already and good places could no longer can appreciated. But if you know how to appreciate common around things around you then you can just stay in your place and can live happily.
Mostly develop countries are like getting taxes from individuals who had huge earnings. If you wish to stay somewhere else then forget the taxes getting from you. What yoi should investigate instead should be the people, their traits, attitude and culture to rely on. I will start with one country that I love the most which is Japan.
Japan is considered as bitcoin friendly country but still when spending bitcoin they will get a tax from you. Yet, you will be amazed how good the Japanese people are that even in basketball substitution both incoming and outgoing players will going to bow down as sign of respect. Other than that Japan has the safest city in the world which, the Tokyo city. Low crime rates and people has the initiative. Japan is also an advance country with good technology and education.
This is just an example on how you should spend your money for your retirement. Actually it is not about good living because you have it already and good places could no longer can appreciated. But if you know how to appreciate common around things around you then you can just stay in your place and can live happily.
It's not ok for me paying my taxes but it is a liability for us therefore we have an obligation on paying our taxes as well as the other citizens we have living in the same country, to be fair we don't really carry the same burden when it comes to paying our taxes as it scales up depending on which tax bracket you belong and I think it is only fair that the lower income earners have lesser tax liability than the ones earning higher ones.
I think for your case you are experiencing a higher tax liability because you have yielded a higher gain during that year thus placing you on a higher bracket. If you want to reduce your tax liability you should do more research in your country where you are living. For example since I think you are living in a European country there are some countries in their like Germany where you will be exempted for tax if you held your crypto position for more than 1 year. There might be similar laws you have in your country which reduce or completely remove your tax so really there is a lot of options in which you can lessen your obligations.
I think for your case you are experiencing a higher tax liability because you have yielded a higher gain during that year thus placing you on a higher bracket. If you want to reduce your tax liability you should do more research in your country where you are living. For example since I think you are living in a European country there are some countries in their like Germany where you will be exempted for tax if you held your crypto position for more than 1 year. There might be similar laws you have in your country which reduce or completely remove your tax so really there is a lot of options in which you can lessen your obligations.
Indeed, Its one thing availing of the TAX free laws in a different country but there
are certainly criteria to avail of these. We also need to bear in mind the criteria in
our residing country for TAX free status.
I.E move to Germany for 1 year to avail of the TAX free laws but potentially still be
liable for TAX in your normal country, you might have to be a non resident of your own
country for more than a year.
Even if Germany has that kind of law I didn't say that you need to move to Germany because of it. My main point is that you must know your own domestic laws in order to know if you have ways to lessen or even completely remove your tax liability which is possible even in capital gains. Also I didn't mention anything about just focusing on finding tax exemption laws because this will rarely come in our taxation policies. You have mentioned in your OP a company that can reduce your tax liability I guess you only need a lawyer/CPA to know some tricks in order to lessen your tax liability they'll be more familiar with the law and they'll surely help in your case when it comes to taxation.
Serbia, hmmm the postal address on the site is HOng Kong!
It is quite normal that a team can be made up of people from different countries, and that a company headquarters can be where CEO thinks it is best for his business. The thing would be more credible if each team member had their own Linkedin profile and some references, this way it looks more like good PR and nothing more.
Interesting read Lucius, this gives an insight into the fees they charge.
The fees are reasonable for those who are rich to be able to afford it, but the much bigger question is what do you get for what you pay. If you read some of the posts from Reddit, you could see that there are some very dissatisfied customers who didn’t get what they were hoping for. It's actually about someone having x countries that they claim are tax-friendly, and selling that information to all customers - and most of it is publicly available anyway.
I posted a list of 10 countries which appear to have TAX free laws on crypto, post #2.
Croatia has a similar tax policy as Germany when it comes to cryptocurrency taxation, with the difference that the time period after which the tax is not paid is 2 years from the date of purchase.
Shodno tome, promjena kriptovalute u fiat novac oporezuje se po jedinstvenoj stopi od 10%, a na to treba dodati prirez općine/grada u kojem živite. S iznimkom da, ako držite kriptovalutu dulje od 2 godine, ne morate plaćati porez. Zamjena kriptovalute u drugu kriptovalutu se ne oporezuje.
Quote
Consequently, the change of cryptocurrency into fiat money is taxed at a flat rate of 10%, to which should be added the surtax of the municipality / city in which you live. Except that if you hold the cryptocurrency for more than 2 years, you don’t have to pay taxes. Replacing a cryptocurrency with another cryptocurrency is not taxed.
Maybe you can benefit by putting the bitcoin in a mixer or sell it on a P2P exchanges. I don't know much about tax evasion but I think that you already listed offshore which is a really great idea and I think that you should pursue it because you are not that hot in the eyes of the government and the tax department, hell you can even create your own shell company and funnel the money there. Don't ask how I know this, I just binged Ozark so I have some ideas.
Jump to: