alt Hacker NewsPlease beware:
From: https://learn.e-resident.gov.ee/hc/en-gb/articles/3600007215...
> Corporate tax residency
> However, some countries have different rules for deciding if a company is tax resident. It is common that, in addition to the place of incorporation, the place of effective management can trigger tax residence. If you run your company from a country with regulations like this, then the company may end up having dual tax residence. This happens when two states believe that the company is tax resident in their jurisdiction and will want to tax the company’s profits.
This 'It is common that [...] the place of effective management can trigger tax residence' is indeed common.
Replies
Hence the executives/boardmembers-all-fly-to-some-island (Jersey is the one in my mind), have board meeting in the airport, sign the papers, and all fly home?
Company stays "in" Jersey, none of the humans need to live there?
Also estonian law doesn't recognize trusts, so if you want to save your assets for your children that's a problem.
It is still amazing to me that so many people don't get this fact.
It doesn't matter where your company is incorporated, you'll be liable to pay the taxes where you live. And if you think the revenue service of your country is going to forget, you are guaranteed to have a very nasty surprise waiting for you when you least expect it.
The only way to more or less skirt this rule is to keep moving so you're technically never fiscally resident in any country (not even sure if it works), or move your personal fiscal residence to a tax haven like Monaco.