161–170 of 467 posts
Meanwhile my (single-person) company is paying around 20% corporation tax, and then I'm getting taxed a further 20-40% on top of that when I pay myself.
We're also in the UK, make sure you're taking advantage of any tax benefits you may be entitled to such as R&D tax credits. They are back datable.
Earlier quoted context omitted.
The Republic of Ireland isn't part of the UK, but your point still applies.
The company is tax "resident" in Bermuda, a British Overseas Territory. In fact I'm not even sure what the Ireland connection is here except that there is a registered office in Dublin. It seems like all the action is taking place in Bermuda, so this is really a story about UK overseas tax havens.
Earlier quoted context omitted.
Here in France, as a contractor, if I bill a client 100 000€ annually and decide to get as much as possible in personal income, 30 000€ will go as social taxes (health, retirement ...) and for the remaining 70 000€ you will have to pay around 25% as income tax (if you don't have any children). You will have an income of ~52 000€ for 100 000€ billed during the year. You're not earning millions and yet around 50% of re…
25% is what I would expect. You're getting some of the other expenses back eventually (hopefully) in form of pensions, unemployment (if you ever need it) etc. Health itself is a service you are buying. I wouldn't call it a tax despite it being mandatory. I think taxes are too high and the system needs to be redesigned but I just think we need to be exact on our figures when we discuss this stuff.
Companies will just continue to flee to whatever country is now offering 0%. Christmas Island has a new 0% corporate tax policy? Let's go buy a mailbox there and move our "headquarters".
The old-school thinking is that low corporate tax policies encourage business, creating jobs in the process and boosting that country's economy. In the real world it's a shell company with zero employees that pays that country zero in taxes.
This push for a global minimum tax is interesting, and obviously scares the hell out of a lot of conservatives and others who want nothing to do with "global" anything. Also, how would that even work? Countries would simply not agree to play along, no?
The only thing I can think is that this entire thing has to be flipped into some sort of "VAT"/usage situation.
So if a US company is using Microsoft Azure and pays them $1 million annually to do this, Microsoft has to pay US taxes on that $1 million. Track where the customer is based and pay tax based on that countries tax policy.
I'm clearly no tax person, so my ideas mean nothing. But I've put a lot of thought into this "race to the bottom" and it's difficult to come up with a solution.
https://www.propublica.org/article/the-irs-decided-to-get-to...
The ProPublica reporting apparently inspired the Judge to get things moving again.
https://thehill.com/policy/technology/479417-microsoft-order...
Truly sickening.
Earlier quoted context omitted.
Here in France, as a contractor, if I bill a client 100 000€ annually and decide to get as much as possible in personal income, 30 000€ will go as social taxes (health, retirement ...) and for the remaining 70 000€ you will have to pay around 25% as income tax (if you don't have any children). You will have an income of ~52 000€ for 100 000€ billed during the year. You're not earning millions and yet around 50% of re…
25% is what I would expect. You're getting some of the other expenses back eventually (hopefully) in form of pensions, unemployment (if you ever need it) etc. Health itself is a service you are buying. I wouldn't call it a tax despite it being mandatory. I think taxes are too high and the system needs to be redesigned but I just think we need to be exact on our figures when we discuss this stuff.
I have to pay 40% of my income as income tax. I have HAD ENOUGH. This is infuriating. What can we do?
If the cost of getting to net Y cash inflow is X gross income where X = Y + (.66Y) then solve for X and move on, or perform the cost benefit analysis for moving to another tax jurisdiction. The solution is yours to execute.
I have to pay 40% of my income as income tax. I have HAD ENOUGH. This is infuriating. What can we do?
> I have to pay 40% of my income as income tax. So do all the engineers, PMs, etc working at Microsoft.
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While I do not condone benefits fraud, it’s just a drop in the pond. Government projects are quite corrupt, and often go way over budget. Of course, this is a global problem as well. The main problem is corporate tax evasion. Pretty much every multinational funnels money via NL, while paying almost nothing. For example - IKEA, Walt Disney, FAANG, Uber, and innumerable more are all Dutch BVs for most global activities…
Sorry I agree with you. I didn't mean fraud was a big cost, only that social spending (including non-fraudulent) seems to be very high and not tightly controlled (which as a side effect allows for easy fraud). From the outside society seems very stratified. Plenty of Telsa's in Amsterdam and people with expensive tastes. NL is obviously a very wealthy place even compared to neighbouring countries but also has a large…
The reason there’s so many Teslas is because up until 2021, you could get significant tax benefits, if you purchased an electric car via your employer for “work”. If you look past Teslas, you’ll see that most people own average family cars.
Amsterdam does have people with “expensive tastes”, but that’s not representative of the rest of the country. It’s similar to what you’d see in New York or London vs. the rest of their respective countries.
Most of the wealthy people I know own businesses (and as such benefit from the lower taxes), or own lots of rentable real estate.
Microsoft's Irish subsidiary paid zero tax because it owed zero tax—and there's no reason it should have paid, or that this should change in future, apart from the greed and envy of others who want to take money from others to which they are not entitled. Those who are unhappy at the taxes they are paying should perhaps take it up with the tax attorneys and/or legislators who have failed them.