although it's not a official answer, i asked my uni lecturer regarding this question. He told me that the venue that you provide the service will be the place where you will be eligible for tax.
although it's not a official answer, i asked my uni lecturer regarding this question. He told me that the venue that you provide the service will be the place where you will be eligible for tax.
Interesting. I would have thought a physical presence was the determining factor, which maybe is what your lecturer means by the venue where you provide the service. If that's the case then it makes sense you'd be taxed where the venue is.
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yup thats exactly what he said .
there are some more interesting facts that he mentioned to me. For singapore, i thot it's 1 year below 1 million net profit that you are free from tax but from what he told me, its 3 year below 2 million net profit. so at least for the next 3 years no need to worry about taxation.
complete about 1/6 of my business plan now ^^
The venue you provide the service is in Singapore. His answer seems consistent with mine.
Your physical presence is in Singapore. Having a website, for example, to encourage people to start a new franchise of your Sinapore XYZ company in another country seems to make sense that the transaction is taking place in Singapore. Not the United States, Ireland, or wherever these prospective customers are from. You are conducting the sale from Singapore.
Now if they start an operating in the USA, then yes they are liable for taxes to the US government.
I don't understand how any other government could legitimately "tax" you when they have no interest in the matter. If I decided to fly out there for training, how is the United States going to collect taxes from you? You are not a citizen, and we'll assume never have been here. There is no basis or jurisdiction that would allow for them to do so.
Companies with international operations have a physical presence in these countries, thereby subjecting them to taxation.
Small Business CPA
"A tax loophole is something that benefits the other guy. If it benefits you, it's tax reform."
Evan a few posts back Henry mentioned he would have people in the other countries physically present to collect money. I'm not sure if that would constitute a physical presence, but I can see how it could be argued that it would be a physical presence.
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A side issue, Henry ... You could offer it as a travel package to Singapore and surrounding countries with the spa concept. That way you could get a broader appeal.
Paul
hmm, a travel package to singapore and surrounding country, wouldn't it be consider as a tourist related business ? if it does, there might be more license to acquire for it.
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