Author Topic: What tax do you pay from stock in your country? (Read 13253 times)

niserin · « **Reply #25 on:** November 19, 2014, 06:28 »

Quote from: nicku on November 19, 2014, 06:26

In Romania 16% after cost deduction.

This is super low! I envy you. What is more Romania is a beautiful country and cheap to live in.

Tror · « **Reply #26 on:** November 19, 2014, 06:48 »

Quote from: nicku on November 19, 2014, 06:26

In Romania 16% after cost deduction.

Any social security obligations?

niserin · « **Reply #27 on:** November 19, 2014, 07:00 »

Quote from: Tror on November 19, 2014, 06:10

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.

I'm wondering if this is difficult to move the business to Malta or Romania or other country with low tax OR benefits for intellectual property sellers (microstockers etc). Moving to other country to live there is not an option for me.

StockPhotosArt.com · « **Reply #28 on:** November 19, 2014, 09:11 »

Well, in Portugal we pay 33% for Social Security, plus a Tax over the income in addition to tenths of other taxes.

In fact, if the state overcharges you and is forced for restitution of the money to you, they'll charge a tax on that transaction and it will count as income for the next fiscal year!!!

In fact, unless you have an income at the "homeless" level the state charges you taxes even if you can't pay them and end up with a negative balance at the end of the month. But no problem, all it takes is for them to take possession of your house and everything you have...

In Portugal your main duty is to finance the state, much more ahead than the obligation you have to put food on the table and a ceiling above your head.

robhainer · « **Reply #29 on:** November 19, 2014, 09:25 »

In the U.S. it is important to set up an LLC S corporation so you can take your earnings as a stock distribution from your company instead of self-employment salary, otherwise you have to pay a self-employment tax of 15 percent for social security and medicare on top of tax you pay for income.

At the same time, you don't pay corporate taxes because you pass through all the income to your personal return.

All the rich doctors, lawyers and investment bankers do it. So can photographers.

Tror · « **Reply #30 on:** November 19, 2014, 09:25 »

Quote from: niserin on November 19, 2014, 07:00

I'm wondering if this is difficult to move the business to Malta or Romania or other country with low tax OR benefits for intellectual property sellers (microstockers etc). Moving to other country to live there is not an option for me.

No, not really complicated as itself, but what you are suggesting with "moving business to Malta" is basically that you want to install a legal entity on maltese territory (since you do not want to move personally) which will be maltese resident to keep it out of your own home country. While this is possible, you will face high administration costs for the company (most likely a limited) and by separating it from your home country you suggest that work is done from maltese territory and therefore lose all the tax benefits...understood? However, if the company would be doing travel photography or shoot from many different locations etc. you would be able to get the benefits.

There are more possibilities, but here you are entering the famous and dreaded world of offshore businesses and legal games you can benefit from. E.g. in Malta you can or could create a company which is held by a foreign legal entity such a Netherland BV and get a effective tax rate of 0 - 5 % on income taxes for the company. But this will cost you at least 6000€ on administration a year and you will have to take care about two entities in two countries. These are the games played by the big ones such as apple and google on european territory.

If you move as a individual to such a country it is easy compared to all this. Huge financial benefit. Minimum cost and administration. And as a european (if you are from the EU) not much problems to obtain legal residency etc.

Buffalo Bill · « **Reply #31 on:** November 19, 2014, 09:36 »

Quote from: jrwasserman on November 18, 2014, 11:21

I'm in Canada and we pay too much. On the other hand, we have great health care, highways, schools ....

except horrible hockey teams!

Buffalo Bill · « **Reply #32 on:** November 19, 2014, 09:43 »

Quote from: robhainer on November 19, 2014, 09:25

In the U.S. it is important to set up an LLC S corporation so you can take your earnings as a stock distribution from your company instead of self-employment salary, otherwise you have to pay a self-employment tax of 15 percent for social security and medicare on top of tax you pay for income.

At the same time, you don't pay corporate taxes because you pass through all the income to your personal return.

All the rich doctors, lawyers and investment bankers do it. So can photographers.

good point on the s corp! I know a doctor that owns her own business and uses s corp

Pixart · « **Reply #33 on:** November 19, 2014, 10:24 »

Quote from: Buffalo Bill on November 19, 2014, 09:36

Quote from: jrwasserman on November 18, 2014, 11:21
I'm in Canada and we pay too much. On the other hand, we have great health care, highways, schools ....
except horrible hockey teams!

Uh-oh.... them's fightin words BB

Pixart · « **Reply #34 on:** November 19, 2014, 10:26 »

Quote from: Ariene on November 19, 2014, 03:14

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 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).

Does the business have more writeoffs, would it help if the business charged an equipment rental for the micro photography to offset the earnings?

Buffalo Bill · « **Reply #35 on:** November 19, 2014, 10:27 »

Quote from: Pixart on November 19, 2014, 10:24

Quote from: Buffalo Bill on November 19, 2014, 09:36
Quote from: jrwasserman on November 18, 2014, 11:21
I'm in Canada and we pay too much. On the other hand, we have great health care, highways, schools ....
except horrible hockey teams!
Uh-oh.... them's fightin words BB

go Bruins! Beat les Habs!

Ariene · « **Reply #36 on:** November 19, 2014, 14:24 »

Just curious, why someone decided to give -1 in Reply #17? I would just know (really don't get it) what's wrong with that post, please...

Harvepino · « **Reply #37 on:** November 20, 2014, 03:33 »

Quote from: basti on November 19, 2014, 05:59

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...

Slovakia here. Similar story. What's worse, there is nothing of that money coming back. Roads are awful, healthcare horrendous, education... hardly enough money to turn the heating on in classrooms when it gets cold.
Welcome to tax hell, it is called Eastern Europe

airphoto.gr · « **Reply #38 on:** November 20, 2014, 12:31 »

Greece: 26% +1-3% on profits (that means 27-29%)
plus 800-1200 US$ "profession tax" (you pay it even if you don't have profits)
plus $3600-$6500 per year for a "social insurance" that gets you almost nothing
(we pay again the private sector for health or education and tolls on highways are 4 to 8 eurocents per km!)

With what remains you buy goods that include 23% VAT.

On top of that the recent crisis sent everyone's income to 50% of what it was.
By now, almost 2/3 of the Greek business owners can't pay their liabilities to the state, which is confiscating bank accounts and will soon start to confiscate houses.

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Author Topic: What tax do you pay from stock in your country? (Read 13253 times)

niserin

Tror

niserin

StockPhotosArt.com

robhainer

Tror

Buffalo Bill

Buffalo Bill

Pixart

Pixart

Buffalo Bill

Ariene

Harvepino

airphoto.gr

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