Where to go to business. Countries with the best tax regimes

The Bell completes the cycle dedicated to the non -obvious schemes of emigration for Russians. In this material, together with Deloitte experts, Svetlana Fedorova and Daria Rusanova, we talk about which countries are attractive from the point of view of tax regimes for entrepreneurs who are going to launch business from scratch abroad or relocate it. We also asked to tell three businessmen who are already developing their projects abroad about personal experience.

What we talked about in other materials of the cycle

In 2021, we launched a cycle that became very popular about unusual emigration programs. In it we said:

• About how to get a Global Talent visa, which allows you to go to the UK without binding to the employer.
• About the startup visa , which opens the possibility of obtaining a residence permit in several dozen countries of the world.
• On the visa of the innovator , which also allows you to reject the Britain.
• About a student visa that is suitable not only for students.
• And on a visa visa for financially independent Russians.

What's happened

Over the past few years, the startup industry has turned into a global system for which geographical boundaries are not a hindrance. This trend was actively developing during 2021 - entrepreneurs continued to look for the most optimal countries to expand the business.

If in the last decade the term “international company” could rather be applied to large business or corporations, in the past 10 years, companies and companies that have been part of the SME category (small and medium -sized enterprises) have been globally. Among them, companies that transfer or create production cycles in other countries should be distinguished, and companies that prefer the organic growth of the acquisition of existing businesses abroad. But regardless of the business model, at each stage of growth, it is necessary to pay close attention to corporate and personal taxes when planning the move.

There are a number of jurisdictions that are worth paying attention to when expanding the business abroad. Although the final choice, of course, depends on the goals of the business and its founders.

At the stage of the institution, the number one task is most often - attracting capital. Therefore, the choice of jurisdiction for the creation of a legal entity is most important in terms of access to financial markets and the availability of a developed business environment. At this stage, it is necessary to study the market of the selected region in terms of:

• the availability of a consumer market;
• maturity of business processes and infrastructure;
• the presence of competitors;
• tax benefits for business.

What countries today are attractive for startups in growth and expansion?

Cyprus

Cyprus remains a popular area for immigration of both business and employees, in particular, in the IT industry. The main factor of such popularity is tax benefits, in particular, the release of 50% of tax income for highly qualified employees, as well as the lack of dividends tax. To use the benefit of the release of 50% of the tax income, the following conditions must be followed:

The minimum annual wage is at least € 100 thousand. The maximum period of application of benefits is 10 years since the beginning of the labor contract in Cyprus.

If the proposal for consideration by the government of Cyprus from January 1, 2022, the minimum annual wage is at least € 55 thousand. The maximum period of application of benefits in this case is 17 years.

But it is necessary to remember the changes in the agreement to avoid double taxation between Russia and Cyprus, which entered into force since 2021. Now the dividend tax rate withdrawn from Russia in favor of Cyprus is 15%, and not 5%, as before.

Central and Eastern Europe

In the event that the purpose of relocation is to obtain access to the competitive labor market, you should pay attention to the countries of the Old World. Many companies that strive to create a full -fledged business abroad are increasingly considering the states of the Voskhradsky four - Poland, the Czech Republic, Slovakia and Hungary. Our customers justify this choice with the maturity and predictability of legislation, relatively low cost of creating and maintaining a business, a large number of technical universities and their graduates and a flexible program of benefits and subsidies.

For example, the use of R & D-ligates in these countries is possible in many industries: in engineering, construction, communication of communication technologies, but primarily in IT. The key aspect is an assessment of how much R&D activity meets two criteria:

• the criterion of novelty;
• The criterion of uncertainty.

Companies successfully use R&D slots every year, significantly saving on taxes, and thereby increase their competitiveness. The use of benefits is not limited to writing programs or scientific engineering surveys. We have seen successful examples of its application to the development of customer service procedures and the production of internal processes.

The process of obtaining support in the countries of Central and Eastern Europe is associated with a number of bureaucratic procedures and takes a long time. Nevertheless, all types of preferential assistance every year find their recipients, which gives business the opportunity to develop and find new customers in the local market.

Evgenia Sharai Enemer Development Director our company was registered in Poland as an LLC. To open some project as an individual entrepreneur, you should have either Polish citizenship or a document confirming the Polish origin. A foreigner cannot register like an individual entrepreneur, but it can open an LLC, so all companies mainly work in this format.

To do this, it will take literally two days: the founder (s) is determined, which should receive Pesel in Poland. This is a tax identification number. It is impossible to open a company without it. Having received Pesel, the founder can make an EPUAP - this is a profile on the state platform with which all activities are carried out (like “public services” in Russia), including the opening of a legal entity.

Most often, the LLC should pay value added tax (VAT), which depends on the type of activity. For example, a zero rate is possible ( used in the purchase and supply of goods from EU countries to Poland), a rate of 8% ( applies to pharmaceutical and medical products, passenger transportation services, temporary accommodation and residence, housing construction), etc.

The maximum VAT is 23%. In addition to him, the company is subject to corporate tax called CIT. Its standard rate is 19%, but entrepreneurs can use a preferential rate of 9% (with an annual turnover of € 1.2 million, and the limit will still be increased to € 2 million).

Since January, a new law has been introduced regarding business taxation. In general terms - there will be no messages. In particular, the amount of contributions to ZUS (social insurance, pension contributions, etc.) will increase. Usually this is already a large amount: for private entrepreneurs, the amount of monthly contributions for 2021 amounted to 1172 zlotys (€ 255; for the first two years from the moment the business is opened, a preferential tariff is provided for 487 zlotys (€ 106).

In addition, thresholds are increased in the framework of income tax. As the founder of the company, you fall under them when you withdraw profit as personal income. There are only two thresholds - 32% tax is used from 85.5 thousand zlotys (€ 18,589) gross, and below this amount, a rate of 18% is valid. From 2022, the threshold will raise to 120 thousand zlotys (€ 26 089).

Several years ago, amendments were made to the legislation, according to which any working student under 26 is completely exempted from income tax (in addition to age, the condition for exemption was an annual earnings of less than € 20 thousand in equivalent, but all this did not apply to the founders of companies). And in Poland it is now very popular to employ students under 26 years old.

In any case, initially when opening an LLC, it is best to take care of competent accounting at outsourcing or in the state. Moreover, an accountant is needed precisely as a tax consultant who can help optimize costs so as not to fall under double taxation.

Southern Europe

Southern Europe relies not so much on the presence of benefits as at a lower level of corporate taxation.

So, in Hungary, one of the lowest tax rates for corporate income in Europe is 9%. Moreover, the possibility of applying a preferential tax regime in the country is associated with expenses, intellectual property and income (IP-box), which allows reducing the tax rate by 50%.

From January 1, 2019, Serbia introduced a preferential regime, which allows to reduce the effective tax rate for IT companies from 15% to 3%.

Netherlands

The Netherlands remain very popular jurisdiction in Europe to relocate business. Given the beneficial tax legislation, a developed financial and legal structure, as well as proximity to European consumer and labor markets, it is not surprising that the Founders choose the Netherlands for the maternal holding of their group.

Nevertheless, it is worth paying attention to the breakdown of the agreement to avoid double taxation between Russia and the Netherlands from January 1, 2022. The gap means that the payment of all types of passive income from Russia will be taxed without the possibility of using preferential rates: 15% - dividends, 20% - interest and royalties. Thus, the Netherlands from the New Year can lose the status of optimal jurisdiction for a particular business, for example, the choice of a company in the Netherlands as a maternal while maintaining Russian business and cash flows between Russia and the Netherlands.

But for individuals who plan to move to the Netherlands along with their business, there is a favorable tax regime (Partial non-revident), which under certain conditions allows the exemption of all foreign (non-Dutch) income for the first 5 years. Even in the presence of income from Russia, a double tax conflict for individuals does not arise.

Nick Depulchuk CEO Travel Service Locked my choice for the Netherlands, because, firstly, there is a very friendly ecosystem in relation to innovative companies, especially from abroad, that is, from behind the EU limits. There are many support programs for international founders, including young and inexperienced ones, so that they can move here and start a business from scratch.

The second reason is a transparent bureaucratic system. Almost everything is done online: submitting documents, checking status, notification of confirmation, etc. The office of the migration service, which resembles the Russian Center for State Services, only needs to come to pick up the "Idishka" (a card of the Netherlands resident) when the startup visa has already been agreed. It took me about 3-4 months for the whole procedure, which was very fast compared to the rest of Europe and for a long time for the Netherlands-I submitted documents in the midst of a pandemic.

We pay a progressive salary tax (Payroll Tax) - depending on the salary. At a low rate, it is approximately 15%to 18%, average - from 35%to 39%, and the highest income is taxed 52%. But the Netherlands are beautiful in that there is a developed tax system with old laws, around which there are a lot of options, how to lower the tax and get maximum benefit.

This is especially important if you are a startup and each center is critical. For example, you can standardly translate those business services that you, in principle, use it to the company’s account so that Payroll Tax does not act.

There are also many grants from the government. In each region there is a structural unit that is responsible for investment and support for the development of an innovative ecosystem.

In addition, a cool scheme is available: if you are a business owner of a business, then you do not pay social tax (social insurance, Social Security), because the state does not insure the dismissal and the employee will not receive a benefit if he quits. It's about voluntary dismissal - you take all the risk of yourself, but this greatly reduces the tax burden.

You can understand how it all works with the help of an online calculator-Dutch Income Tax Calculator. Consider the following case : conditionally taxable income for 2021 is € 36 thousand. Then, taking into account the general tax benefit (General Tax Credit) and the tax benefits of labor (Labour Tax Credit) Payroll and Social Security will cost € 729.

In addition to Payroll, there is also a corporate tax on the company's income. We, being a startup, until we fix the income, but invest in development. Our rate is 15% (with a taxable amount of up to € 245 thousand inclusive; the maximum rate is 25%). There is a scheme in which you pay [rate tax] in 9% - provided that you are engaged in research and development in the Netherlands. The company needs to certify the business development agency (Netherlands Enterprise Agency; RVO). R&D is something innovative, for example, the development of an unmanned car, application, etc. Around this, all migration programs are built, including a startup visa.

On average, 35% of income takes place on taxes, and if you want to pay yourself bonuses, then all 52%. But when compared with personal income tax in Russia and other European countries, I do not see any particular flaws [in Dutch jurisdiction]. The taxation system is simple and understandable. It has many ways to save and quickly receive a refund: a deduction to courses, education, children, etc. Verification are extremely rare. At the initial stages, business is not touched at all. You report online, and when you need to get any benefits, you just hire an accountant who explains and helps. The big plus is that almost everything is available in English.

Another advantage, especially for the formed entrepreneurs or even startups who have already begun to develop, do not need to transfer the business to the country as a whole. In our case, only a foreign legal entity is opened in the Netherlands, and historically we are in the States where there is no VAT.

What you need to remember if you have chosen the USA for doing business

The United States is an unconditional favorite among many startups that are at the stage of attracting capital and investors. On our own experience, we were convinced that often American investors and venture funds require the transport of basic intangible assets from the CIS to the United States. This requires proper tax structuring, for example, the institution of the American LLC and the transfer of intellectual rights to the new maternal company of the group.

Many ignore the issue of hereditary taxes in the United States. Having translated a part of the welfare in the United States, the entrepreneur must remember that the shares of American companies are subject to inheritance in the United States using a 40%rate. This rule acts, even if the holder of shares and his heirs do not live in the United States and do not have a Green Cart/US passports.

Based on the rather complicated tax aspects in the States, the transfer of business and entrepreneurs in the United States must be carefully planned and contact specialists in advance in order to level out possible tax consequences.

What are the programs for obtaining a residence permit for entrepreneurs?

One of the main sources of entrepreneur’s income is the sale of shares. Such a liquid event can occur both as a result of attracting new investors (by alienating the founder’s share) or IPO, and as a result of a different exit of the shareholder from the business.

Below we give a brief list of European countries where they exist

1) programs for the acquisition of a residence permit through investment;

2) favorable tax regimes in the sale of securities:

Portugal

Obtaining a residence permit is possible by committing real estate investments in the amount of € 500 thousand

Obtaining a permanent residence permit in 5 years. The ability to get a Portuguese passport in 6 years

There is no need to constantly live in Portugal to receive a passport (7/14 days a year enough)

Non-Habitual Resident -tax status that provides exemption from taxes on income outside Portugal, provided that the income is subject to taxation from the source country, and is also not received in the state recognized by Portuguese by tax harbor, for example: Bagams, Kaimans, Liechtenstein, Gibraltar, Panam Offshores.

Malta

The jurisdiction that allows the EU passport in the shortest possible time (1 year) due to an irrevocable contribution to the National Fund for Social Development in the amount of € 650 thousand.

There is no need to constantly live in Malta to receive a passport.

Persons who do not have domicil in Malta are not subject to taxation on capital from foreign sources.

United Kingdom

Investments in the amount of £ 2 million for 5 years

The investor and members of his family receive a temporary resident visa for 3 years with the right to extend for 2 years. After 5 years, it is possible to obtain a permanent residence permit

A special tax regime Remittance Basis , which provides that a person pays an income tax from foreign sources only when transferring them (Remittance) to the UK.

Important! The presence of citizenship or residence permit in most jurisdictions in itself is not a criterion for determining the tax residency.

Taras Polishchuk co -founder of the Dorm Entrepreneurs Support Service I have business interests in Russia, and in the UK, business has been opened from scratch. Two years ago, I moved through the Exceptional Talent Visa and launched a new startup, under which I attracted money from local investors, and now I am developing it.

One of the main advantages of the UK Tax System is the lack of global income tax in the presence of non-domicled status. Its owner for a sufficiently long period (up to 15 years) is exempted from income tax that he receives outside the UK and does not import into the kingdom. For example, if there is a functioning business in Russia, then the money that it brings should also remain in Russia, or it can be transferred conditionally to the expense in Switzerland.

The labor tax is quite high and is calculated on a progressive scale. An effective rate is about 40%. At the first £ 12,570, you do not pay tax at all. From £ 150 thousand, the maximum rate of 45%is valid. It is quite normal for developed countries. On top, the employer usually pays a very small contribution additionally (social science is from 0 to 13.8%). For comparison, in Russia, 13% is declared conditionally for the employee, but the employer can pay another 60% in the form of various social networks, etc.

Corporate tax is also acceptable, now it is 19%. Compared to other jurisdictions, this is quite attractive, but it will be raised in the next few years, and there are already plans for this (an increase of up to 25% for companies with a profit of £ 50 thousand is discussed ).

In addition to the status of Non-doomicined, from the point of view of non-obvious benefits in the UK there is an attractive system of benefits for investments in startups for a business angel. Здесь очень развитая венчурная экосистема, в том числе потому что существуют льготы [по схемам] EIS и SEIS. Первая позволяет вернуть 30% корпоративного налога при размере инвестиций в £1 млн (или £2 млн, если речь идет о наукоемком стартапе), вторая — вычесть 50% размера инвестиции при условии, что она не превышает £100 тысяч.

Среди других льгот также есть Entrepreneurs' Relief (с апреля 2020 года называется Business Asset Disposal Relief). Предполагается, что ты платишь минимальный налог — всего 10% — с первого £1 млн от предпринимательского дохода, полученного после реализации акций компании.

Помимо прочего, при желании инвестировать в акции ты можешь вкладывать до £20 тысяч каждый год и не платить с этого налоги. Это называется ISA. Еще есть интересные льготы для сотрудников стартапов. Если ты как стартап хочешь мотивировать сотрудников опционами, можно воспользоваться схемой EMI, по которой они платят очень маленький налог с денег, которые получают при реализации опционов.

Система чуть более сложная [по сравнению с Россией]. Есть огромное количество льгот и возможностей для оптимизации. Чтобы грамотно все это изучить и начать пользоваться, потребуется большое количество времени. Зато в результате можно сэкономить большое количество денег.

Подача происходит онлайн, в основном через сайт правительства (gov.uk) или налоговой службы (HMRC), где все написано максимально понятным языком. В принципе вся система построена на доверии — все должно быть честно, но при этом ты фактически сам декларируешь свое право (eligibility) на льготы, готовишь и загружаешь все документы. Первично данные никто не проверяет, только если возникли подозрения или еще какие-то проблемы.

О чем стоит задуматься при переезде из России?

– Достаточно ли физлицу проводить в России менее 183 дней в календарном году, чтобы утратить статус налогового резидента?

Enough. Но краткосрочное изменение резидентского статуса или отсутствие статуса налогового резидента какой-либо страны может побудить российские налоговые органы применить положения Налогового кодекса касательно необоснованной налоговой прибыли. Важно, чтобы переезд физического лица и утрата статуса резидента был связан с деловыми или личными факторами, а не с поиском юрисдикции исключительно для достижения налоговой выгоды.

– Есть ли обязанность уведомлять налоговые органы России об утрате налогового статуса?

Нет, такая обязанность отсутствует. В случае направления требования налоговыми органами статус налогового резидента можно подтвердить штампами в загранпаспорте и/или предоставлением посадочных билетов/бронирований в отелях и т. п.

– Как я должен платить налоги на российские доходы в случае утраты статуса налогового резидента России?

Доходы от российских источников, например, зарплата или продажа российского имущества, подлежат налогообложению в России для нерезидентов по ставке 30%.

– Могу ли я работать удаленно на российскую компанию, находясь за рубежом?

Такой сценарий возможен при договоренности с работодателем. В случае заключения дополнительного соглашения к трудовому договору с указанием положений об удаленной работе за пределами России существует возможность исключения данного вида дохода от налогообложения в России. В таком случае такой доход будет подлежать налогообложению в стране налогового резидентства физлица.

Фото на обложке материала: Ben-o-bro/Unsplash