Tax treaty question - Where do I pay tax?

[LordCharles]

I just came to think of something. Since a company is supposed to pay tax in the country where it is resident
(i.e. where it is managed and controlled from), it shouldn't matter where you incorporate, but where you live.

So for example, I sell to UK, France and Germany. Can I start a company in each of those countries and live in
Hong Kong, and all corporation taxes on the UK, French and German companies would be payable in Hong Kong only
at HK local tax rate (16.5%)?

This makes everything so much easier. When doing business in Europe it's hard to do so with a Barbados company for example.
But if you can have a UK company but live in Barbados, you'd still be paying no tax. Am I right in this?

Same should go for Estonia. Since Estonia has a 0% corporation tax, you could run a UK business from Tallinn and pay no corporation tax?

[WTFH]

What does your accountant say?

[LordCharles]

What does your accountant say?

I don't know, I don't have one. Do you suggest I hire one full-time so I can ask him questions like this?
Or do you hire a firm? Do you then pay per question or how does it work?

[Major Hassle]

I don't know, I don't have one. Do you suggest I hire one full-time so I can ask him questions like this?
Or do you hire a firm? Do you then pay per question or how does it work?

Why don't you explain your question with some context, as it is you just sound like an idiot.

[WTFH]

Why don't you explain your question with some context, as it is you just sound like an idiot.

Lord Charles used to be a dummy who was operated by a human.

Charles, who currently does your taxes for you?

[Alan @ BroomeAffinity]

Yes. The best approach with complex international tax strategies is to seek free advice on an Internet forum rather than seek professional advice. Crack on, what could go wrong?

[LordCharles]

Yes. The best approach with complex international tax strategies is to seek free advice on an Internet forum rather than seek professional advice. Crack on, what could go wrong?

It's quite a simple and straight forward question so thought perhaps somebody knew. Doesn't mean I would rely on the advice, but it could make for a good starting point for further investigation.

Why even have a forum called "Accounting / Legal" if all accounting questions must be asked to your accountant?

[SueEllen]

It's quite a simple and straight forward question so thought perhaps somebody knew. Doesn't mean I would rely on the advice, but it could make for a good starting point for further investigation.

Why even have a forum called "Accounting / Legal" if all accounting questions must be asked to your accountant?

The accounting questions on here are related to being wholly in the UK tax system this is why the site is called contractoruk

Some of us have contracted or worked abroad so we can answer and direct people to other sources of information in relation to those countries, but no one here is able to answer complex questions about various random tax regimes.

[Louisa@InTouch]

The company will be deemed to likely have a permanent establishment in each of the countries and so be at risk to all the individual country taxes.

The country in which it is incorporated would still consider its position and they would do a whole load of technical examination before they gave up the tax they wanted!

[Alan @ BroomeAffinity]

It's quite a simple and straight forward question so thought perhaps somebody knew. Doesn't mean I would rely on the advice, but it could make for a good starting point for further investigation.

Why even have a forum called "Accounting / Legal" if all accounting questions must be asked to your accountant?

With respect (yes, really) it's neither quite simple or straightforward. Starbucks, Facebook, Google have a battery farm full of accountants, tax lawyers and other experts all over the world and even they can't get it right.

As Louise stated above regardless of the country of incorporation, many jurisdictions tax profits where they are generated.

And you must have some tax bill if you think opening companies all over the world is going to be tax efficient. Zero (or low) tax jurisdictions typically have really expensive corporate managements structures.

Relax, forget your idea, and pay your tax.