My scenario is as follows:
I'm currently based in the European Union (Poland). For the last 2 years I have developed a software product, for which target customers are firms. I don't have a company registered. If I were to start selling my product, the way that makes tax office happy, it would look like this:
I register a company. Each month I pay 19% corporate tax from my income. But since I don't have any costs (not from the point of view of tax office) that 19% would be applied to all my sales. Additionally, I would have to pay each month over 200 Euro "social insurance" and initially would have to pay a tax consultant to make sure I do everything correctly. Add to that the small share of online payment provider.
I have some hard feelings about this, since I didn't exist to the government for the last 2 years, while woring on my product, without any income. But once I'm about to generate some profit... And don't even get me started on how will my tax money be spend by the government.
Anyway, an ignorant, like myself, would think that it would be enough to open a bank account in Switzerland (very lovely country, if I could afford it, I would move there permanently BTW) and tell the online payment provider to send the sales income there. But the realist in me sees 2 problems in this plan:
1. Since my customers are firms, I would have to have a VAT number so that they can subtract their purchase from their income.
2. Is Switzerland still the "tax heaven" people think it is?
Any advice?
But since I don't have any costsReally? How you do that? Not renting webspace, not running anything? Come on, you DO have at leat SOME costs. For example your internet, your computer, you know. 19% smells like poland.
Additionally, I would have to pay each month over 200 Euro "social insurance" and initiallyOk, social security is your problem (post tax), but guess what -the tax consultant IS COST.
would have to pay a tax consultant to make sure I do everything correctly.
Add to that the small share of online payment providerAgain, cost.
Any advice?Check what your counteis law say to stupid people jusst rying to bypass the law that easily. Hint: the government supports you. By furthe reducint your costs. For example, you dont even need rent anymore, they pay your room. And boad. Called prison.
Seriously, be happy. Make as much moeny as you can. Pay 19% and start building a company, but do NOT get into stupid little tax evasion games when you are obviously quite clueless about the basics how businesses run (as in: you dont even see the costs you have).
You need tax advice. Like NOW.
would think that it would be enough to open a bank account in SwitzerlandNo. Corporate cusotmers want business registration id, want VAT number. Especially within the EU ther regulatio0ns are quite tight by now.