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Author Topic: What tax do you pay from stock in your country?  (Read 11831 times)

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« on: November 18, 2014, 06:33 »
0
In Poland I pay 18-32% and I consider it quite a lot. Thinking about moving my business to Malta or Luxembourg :)

I am curious how it looks in other places.

Cheers!


« Reply #1 on: November 18, 2014, 07:05 »
0
In Poland I pay 18-32% and I consider it quite a lot. Thinking about moving my business to Malta or Luxembourg :)

How would that help you? Then you'd have money in a business account in Malta. When you want to use it for your personal living, you'd have to pay you a salary, and you would have to tax it as income in Poland again. You would have to move to pay taxes in a different country. Everything else would be illegal.

That's why Apple is sitting on hundreds of billions in cash on some islands - they can't transfer it back to their main company in the US because then it would become taxable. ;)

« Reply #2 on: November 18, 2014, 07:33 »
+3
I suck it up and pay out the ass.  Roughly 30% of net income.

ShadySue

  • There is a crack in everything
« Reply #3 on: November 18, 2014, 07:48 »
+1
In Poland I pay 18-32% and I consider it quite a lot. Thinking about moving my business to Malta or Luxembourg :)

I am curious how it looks in other places.

Cheers!

Are you remembering to account for all your allowed expenditure against expenses(assuming this is relevant in Poland)?

« Reply #4 on: November 18, 2014, 10:22 »
0
In Poland I pay 18-32% and I consider it quite a lot. Thinking about moving my business to Malta or Luxembourg :)

I am curious how it looks in other places.

Cheers!

Are you remembering to account for all your allowed expenditure against expenses(assuming this is relevant in Poland)?

Of course, but my expenses are really miniature as compared to income...


« Reply #5 on: November 18, 2014, 11:21 »
+8
I'm in Canada and we pay too much. On the other hand, we have great health care, highways, schools ....

« Reply #6 on: November 18, 2014, 12:26 »
0
I'm in Canada and we pay too much. On the other hand, we have great health care, highways, schools ....

numbers please ;)

« Reply #7 on: November 18, 2014, 12:38 »
0
my expenses are really miniature as compared to income...

Your company income will need to be substantial in order to counter-balance the cost of setting up a legal entity in another jurisdiction. You would need a registered office, local banking facilities, legal representation, accountants and at least one local representative. Corporation tax (company tax) in Luxembourg is levied at slightly under 30% which is more than in many EU countries. However IP income including royalties is eligible for up to 80% reduction. Non-tax resident employees are subject to Luxembourg taxes. The top rate of personal tax is 40% AFAIK.

I doubt that many photographers in the world are earning the sort of money which would make it worth their while running things via an offshore company. You might be better moving and becoming tax resident somewhere with a capped personal tax rate and low or zero corporation taxes. There are quite a few decent places with a top rate of roughly 20%. The downside is that the paradis fiscaux tend to be expensive places to buy property and live. ETA: - also that if there is no double taxation treaty with the USA then agencies which are still based in the US will deduct 30% withholding from your income.
« Last Edit: November 18, 2014, 12:59 by bunhill »

Ranker

« Reply #8 on: November 18, 2014, 12:39 »
+1
18-32 is not a lot and you might regret moving your business to another country. I would consider myself lucky with such low taxes.

« Reply #9 on: November 18, 2014, 13:05 »
+2
I'm in Canada and we pay too much. On the other hand, we have great health care, highways, schools ....

numbers please ;)

According to the Fraser Institute, in 2010 the average Canadian family paid 41% personal taxes (the same family paid 34% to clothing, food and shelter).

I personally greatly benefit from the health benefits, I visit a Gastroenterologist and Hepatologist with extensive blood tests 6 times a year, ultrasounds about once a year and in recent past have had bone scan, MRI, endoscope and 8 day stay in hospital.  I would definitely be bankrupt or likely dead because I couldn't afford to go for checkup in the first place.  I live another day to work and pay my taxes!

Provincial taxes vary quite a lot.  When we moved to Manitoba from Ontario in July, you pay tax for the whole year based on the Province you resided on December 31 - not where you earned the income.  We had to come up with more than 5K to make up the difference for half a year's wages in Ontario vs the tax rate in Manitoba.  That hit us LARGE! 
« Last Edit: November 18, 2014, 13:10 by Pixart »

« Reply #10 on: November 18, 2014, 13:39 »
+2
We are in the US and we pay about 30% for all taxes. That does not include health insurance , though, we pay for health insurance on top of that and healthcare here, in a word, is horrible. And our hospital is ranked in the top ten of the nation, so no idea how bad can it be in other places. Roads are in bad conditions, repairing and traffic jam at all times and all days. Schools? Forget about public schools, and sending your kids to private schools will take 30-50% more out of your income, depending on how many kids you have.

« Reply #11 on: November 18, 2014, 14:24 »
0
Pixart has supplied numbers and sentiment for me as well. I would add that Stock is a part-time job for me. so my regular salaried income boosts the rate I pay.

cuppacoffee

« Reply #12 on: November 18, 2014, 15:59 »
0
We are in the US and we pay about 30% for all taxes. That does not include health insurance , though, we pay for health insurance on top of that and healthcare here, in a word, is horrible. And our hospital is ranked in the top ten of the nation, so no idea how bad can it be in other places. Roads are in bad conditions, repairing and traffic jam at all times and all days. Schools? Forget about public schools, and sending your kids to private schools will take 30-50% more out of your income, depending on how many kids you have.

As they say, "Your mileage may vary". The state and city I live in and the job I have do not compare to what you've stated is true for you. My state and city have decent roads, good public education, low crime and superior healthcare options. Employer-based healthcare costs are low. If you can work the system and the stock market you can cut your taxes. So, it depends on many different factors.

« Reply #13 on: November 18, 2014, 16:09 »
+1
We are in the US and we pay about 30% for all taxes. That does not include health insurance , though, we pay for health insurance on top of that and healthcare here, in a word, is horrible. And our hospital is ranked in the top ten of the nation, so no idea how bad can it be in other places. Roads are in bad conditions, repairing and traffic jam at all times and all days. Schools? Forget about public schools, and sending your kids to private schools will take 30-50% more out of your income, depending on how many kids you have.

As they say, "Your mileage may vary". The state and city I live in and the job I have do not compare to what you've stated is true for you. My state and city have decent roads, good public education, low crime and superior healthcare options. Employer-based healthcare costs are low. If you can work the system and the stock market you can cut your taxes. So, it depends on many different factors.

No argument! In fact, I would love to trade in the Canadian winter one day.

cuppacoffee

« Reply #14 on: November 18, 2014, 16:23 »
0
Not today, below freezing, snow and wind here!

« Reply #15 on: November 18, 2014, 17:30 »
0
We are in the US and we pay about 30% for all taxes. That does not include health insurance , though, we pay for health insurance on top of that and healthcare here, in a word, is horrible. And our hospital is ranked in the top ten of the nation, so no idea how bad can it be in other places. Roads are in bad conditions, repairing and traffic jam at all times and all days. Schools? Forget about public schools, and sending your kids to private schools will take 30-50% more out of your income, depending on how many kids you have.

As they say, "Your mileage may vary". The state and city I live in and the job I have do not compare to what you've stated is true for you. My state and city have decent roads, good public education, low crime and superior healthcare options. Employer-based healthcare costs are low. If you can work the system and the stock market you can cut your taxes. So, it depends on many different factors.

No argument! In fact, I would love to trade in the Canadian winter one day.

Dont. We have about the same winter as Toronto here, and summer is supper hot. Not worth it.

« Reply #16 on: November 18, 2014, 17:31 »
0
We are in the US and we pay about 30% for all taxes. That does not include health insurance , though, we pay for health insurance on top of that and healthcare here, in a word, is horrible. And our hospital is ranked in the top ten of the nation, so no idea how bad can it be in other places. Roads are in bad conditions, repairing and traffic jam at all times and all days. Schools? Forget about public schools, and sending your kids to private schools will take 30-50% more out of your income, depending on how many kids you have.

As they say, "Your mileage may vary". The state and city I live in and the job I have do not compare to what you've stated is true for you. My state and city have decent roads, good public education, low crime and superior healthcare options. Employer-based healthcare costs are low. If you can work the system and the stock market you can cut your taxes. So, it depends on many different factors.

I guess it depends on one's standards too. It's all very relative. To me, it's the worse i have seen, but i am sure there are many here that are happy with what they got.


« Reply #17 on: November 19, 2014, 03:14 »
-1
We are in the US and we pay about 30% for all taxes. That does not include health insurance , though, we pay for health insurance on top of that and healthcare here, in a word, is horrible. And our hospital is ranked in the top ten of the nation, so no idea how bad can it be in other places. Roads are in bad conditions, repairing and traffic jam at all times and all days. Schools? Forget about public schools, and sending your kids to private schools will take 30-50% more out of your income, depending on how many kids you have.


Wow, that completely changes my view about US... :| I was sure it's 100% opposite! And now it sounds very familiar.
I'm in Poland too, where healthcare, school and roads are far away from what it should be...

About taxes - when we sell at micros we can't put this income to company. It changed lately and the funniest thing is that even government couldn't make the decision how we must pay faxes   :o  ;D last decision is: even if you do company where you do photo service (weddings, children, etc), but you do micros yourself, you mustn't include micros income into company. It can be taxed as individual artist income and then you have 50% free as costs of production, and from next 50% you pay the taxes... (19% I guess, but not sure as my taxman is doing this for me).

http://podatki.gazetaprawna.pl/artykuly/771582,prawa-autorskie-fiskus-zmienia-podejscie-do-tworcow-z-firma.html

Many tax men don't have idea how to work with us  ;D

« Reply #18 on: November 19, 2014, 03:58 »
0
Quote
then you have 50% free as costs of production, and from next 50% you pay the taxes... (19% I guess

That is correct, but note that it works only to 85 tys PLN (about 25 000 USD), then you pay 32% with no deductions...

« Reply #19 on: November 19, 2014, 05:02 »
+4
Quote
then you have 50% free as costs of production, and from next 50% you pay the taxes... (19% I guess

That is correct, but note that it works only to 85 tys PLN (about 25 000 USD), then you pay 32% with no deductions...

I wish I had that problem/ income!  ;D   :'(

« Reply #20 on: November 19, 2014, 05:59 »
+2
Im in Czech Republic

I pay just 15 % from the net income after deductibles. Looks great, dosent it?

However, I also must pay $200/month for compulsory healthcare and social security (its called insurance but in fact its just tax) - these $200 must be paid even if I earn ZERO that month. If I go over $5000 net income per year, this insurance is raised to the 38 % of the income (but never gets bellow that $2400/year). And I pay 15 % income tax also from this insurance. So we are at 53 % of the income taxed directly!
Then add another taxes like road tax, house tax, recyclation taxes on every device you buy and many other hidden indirect taxes - these easily make few grands per year. And you pay 21 % VAT from every single thing/energy you buy from the remaining 47 % NET you get. So in total I pay something between 75-80 % of my income back to the state.

Since 1st January 2015 Im forced to pay VAT in every single country of EU where I sell any digital goods - including photos. This means at least $50-100/monthly just for paperwork + of course about 20 % VAT from every single sale and then we get to the beginning above. So I think 30 % income tax and no VAT is just paradise...

« Reply #21 on: November 19, 2014, 06:02 »
0
I'm in Canada and we pay too much. On the other hand, we have great health care, highways, schools ....

I'm in Portugal and we pay too much. On the other hand, we don't have health care, highways, schools ....

« Reply #22 on: November 19, 2014, 06:08 »
+1
Im in Czech Republic

I pay just 15 % from the net income after deductibles. Looks great, dosent it?

However, I also must pay $200/month for compulsory healthcare and social security (its called insurance but in fact its just tax) - these $200 must be paid even if I earn ZERO that month. If I go over $5000 net income per year, this insurance is raised to the 38 % of the income (but never gets bellow that $2400/year). And I pay 15 % income tax also from this insurance. So we are at 53 % of the income taxed directly!
Then add another taxes like road tax, house tax, recyclation taxes on every device you buy and many other hidden indirect taxes - these easily make few grands per year. And you pay 21 % VAT from every single thing/energy you buy from the remaining 47 % NET you get. So in total I pay something between 75-80 % of my income back to the state.

Since 1st January 2015 Im forced to pay VAT in every single country of EU where I sell any digital goods - including photos. This means at least $50-100/monthly just for paperwork + of course about 20 % VAT from every single sale and then we get to the beginning above. So I think 30 % income tax and no VAT is just paradise...

This looks like a tax nightmare!! 53% .... jeepers creepers...

Tror

« Reply #23 on: November 19, 2014, 06:10 »
0
Malta has a territorial based tax legislation and therefore makes lot of sense. You ONLY pay taxes on income generated or remitted to Malta. Luxembourg is not really a low tax jurisdiction. Only if you have the possibilities and the money to play some legal games with corporate entities.

Generally spoken, you have four different Tax paradigms in the world:

1. Citizenship based. You are a citizen of this country and must declare your taxes there, no matter where you live. This is pretty much only the US. If you are from there you are f**ked. Many US expats already got problems with banking e.g. it Switzerland or Latin america because of the strict legislation and some of them even chose to give up their passports.

2. Residency based. This is the common one. You are resident of a country and pay taxes there on your worldwide income. In some cases it could make sense to install a legal entity in another jurisdiction.

3. Territorial based. You are a resident in this country but ONLY pay taxes on income generated within this country and in some cases on income remitted on this country (Malta, Malaysia,...)

4. Income tax free countries.

See:
http://en.wikipedia.org/wiki/International_taxation

But the issue is a bit more complex. Especially in many european countries the governments scam you with outrageous social security contributions which frequently are higher than the taxes itself - despite not being able to deliver reasonable pensions or health care. Sometimes just that can make a huge difference. Other countries have special rules for Royalties. E.g. the Netherlands had very low taxes on intellectual property income if I remember right - never actually lived there. There are many countries which offer lots of benefits in our cases.

I left my home country long time ago. Mostly because of the weather, but also taxes. Never looked back. I do not know about real life in Poland, but if you do not have strong family/friends/patriotic/language ties it does not make much sense to live in a cold, high taxed country IMHO. (Although up to 30% income taxes are not that much :-) ) But everyone has to look into his own options and possibilities.

In principle, I think there is nothing wrong with competition between the countries. It is healthy and reminds them that wealth comes from the ones who actually generate it, not from those who spend it.
« Last Edit: November 19, 2014, 06:15 by Tror »

« Reply #24 on: November 19, 2014, 06:26 »
0
In Romania 16% after cost deduction.


 

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