Taxes
Taxes
Posted on May 7, 2018
Does a US citizen incur a domestic tax obligation if he is the sole shareholder and Director of a foreign Ltd., with no dividends or salary?
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I'm considering registering a corporation in Liberland, and I'm wondering what the tax obligation would be if there were no dividends or salary for a while.
Taxes
Liberland
Law
Business
Tax Preparer
Posted 6 y ago
Responses: 4
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Take a step back and really consider this course of action. What are the benefits to you?
I think your best bet is to talk to a lawyer, but since Liberland is not a real, legal entity, you may run in to a whole host of issues here since it is located on land that is in dispute.
I think your best bet is to talk to a lawyer, but since Liberland is not a real, legal entity, you may run in to a whole host of issues here since it is located on land that is in dispute.
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SPC Elijah J. Henry, MBA
Benefits would be having investments grow in a tax free jurisdiction while I live on other income until this is enough to live on.
Does the State Department have to recognize a country for the IRS to recognize corporations registered there?
Liberland recently signed a bilateral treaty with the Intergovernmental Institution for the Use of Micro-Algae Spirulina Against Malnutrition (IIMSAM), an intergovernmental observer to the United Nations Economic and Social Council. Sounds real to me.
Does the State Department have to recognize a country for the IRS to recognize corporations registered there?
Liberland recently signed a bilateral treaty with the Intergovernmental Institution for the Use of Micro-Algae Spirulina Against Malnutrition (IIMSAM), an intergovernmental observer to the United Nations Economic and Social Council. Sounds real to me.
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PO1 (Join to see)
SPC Elijah J. Henry, MBA - I mean, I'm not trying to be a downer or a naysayer, but it doesn't seem quite real enough to be registering corporations there. Particularly since it is in dispute, you may have to deal with whatever government entity decides they have jurisdiction that day.
Honestly, if you are looking for low or no tax ways to hide funds, go with Switzerland or the Caymans.
Honestly, if you are looking for low or no tax ways to hide funds, go with Switzerland or the Caymans.
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SPC Elijah J. Henry, MBA
Not trying to hide funds, just looking for the best legal ways to reduce my taxes owed. I'm not sure how "real" a country has to be for its corporations to matter to the IRS.
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US Citizens are taxed on income earned anywhere in the World. There is an exemption available for part of the income if you reside in the country for the majority of the year, there is a number of days, but I don't remember the exact number, but more than 3/4's of the year. If you don't meet those requirements, you can deduct any taxes paid to that foreign government. Other than that, the IRS frowns on trying to hide assets overseas and the present Administration seems willing to pursue those taxes.
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