Tax minimization for online service providers

WhisperingTree

Nowadays, online businesses are growing faster and faster. According to our experience in Europe, there is constant and urgent need for IT engeneers and freelancer developers or creative designers. Because of the nature of online services, taxation and the legal framework of the businesses have became less dependent of geographical factors (i.e. an online service provider may carry out it's activity in almost anywhere)

I have started this dicussion to find out which country has introduced the most online businiess friendly taxation system.

WhisperingTree

For example, in Hungary (EU) the government introduced a flat rate (fixed amount) tax for called KATA (small taxpayer's tax) which is an excellent way to legalize your earnings since the fixed fee includes both the earning (corporate income) and dividend tax + the social insurance. (http://www.whisperingtree.hu/blog/how-to-save-a-lot-of-tax-legally/)

However, we heard that in other countries, especially in the UK and Hong Kong, there may be better possibilities also. Do you have any experience in this field? Any suggestions?

JLV

Hi, I can confirm that possibilities are way better in HK. No tax and possibility to create some "substance". A must for entrepreneurs!

saravanan

1. Wave. absolutely free (vendor earns from service) with robust features. Aside from payroll, you get taxation, expense management, invoicing and payments. It also easily integrates with popular accounting systems. You can choose to pay your staff with pay stubs or via direct deposits.