4 ms·

So I live in Poland and it's not really a secret that small companies can and do optimize their taxes by registering in the UK (mostly self-employed professiona

by pawelk 9y ago

So I live in Poland and it's not really a secret that small companies can and do optimize their taxes by registering in the UK (mostly self-employed professionals) or Czech Republic (small companies / family businesses). It's not like you can avoid taxes, but the difference for a self-employed programmer is non-trivial, like getting a 13th monthly salary every year. The Czech deal is done mostly for simpler tax code and better handling of car-related costs. I've seen many luxury cars on the roads with CZ license plates recently and I can guarantee it's not because a sudden influx of Czech tourists :) There are probably more schemes I am not aware of, but these two are popular enough that you get tons of adsense ads when looking for them (i.e. there are companies / accountants specializing in setting this up).

jitbit 9y ago
Yes, I know the UK drill... But how do you hire someone in Poland being a UK company? I thought that's not possible
- pawelk 9y ago
  There are many Poles employed in the UK, so there has to be a way. It may get tricky when these workers do not live in the UK, but on the other hand there are many foreign companies operating in Poland and hiring people here. As I said the UK setup is mostly used for self-employment, so when you need a team mate they are most likely incorporated as well (either in Poland or the UK), so you just sign a B2B contract.
- nielsole 9y ago
  Why would it not be possible? To my understanding that is pretty much what the EU is about. > The European Single Market, Internal Market or Common Market is a single market which seeks to guarantee the free movement of goods, capital, services, and labour – the "four freedoms" – within the European Union (EU). https://en.m.wikipedia.org/wiki/European_Single_Market https://en.m.wikipedia.org/wiki/European_Single_Market
tluyben2 9y ago
Is that setup legal over there? It is not in the EU countries I know about; the UK company would be seen as a defacto company in the country you actually reside and do the work (Poland for instance), unless; If you don't mind travelling then you can, very cheaply, pay very little to no tax being a small company. In many countries it is legal to do so.

by pawelk 9y ago

jitbit 9y ago

Yes, I know the UK drill... But how do you hire someone in Poland being a UK company? I thought that's not possible

pawelk 9y ago
There are many Poles employed in the UK, so there has to be a way. It may get tricky when these workers do not live in the UK, but on the other hand there are many foreign companies operating in Poland and hiring people here. As I said the UK setup is mostly used for self-employment, so when you need a team mate they are most likely incorporated as well (either in Poland or the UK), so you just sign a B2B contract.
nielsole 9y ago
Why would it not be possible? To my understanding that is pretty much what the EU is about. > The European Single Market, Internal Market or Common Market is a single market which seeks to guarantee the free movement of goods, capital, services, and labour – the "four freedoms" – within the European Union (EU). https://en.m.wikipedia.org/wiki/European_Single_Market https://en.m.wikipedia.org/wiki/European_Single_Market

tluyben2 9y ago

Is that setup legal over there? It is not in the EU countries I know about; the UK company would be seen as a defacto company in the country you actually reside and do the work (Poland for instance), unless; If you don't mind travelling then you can, very cheaply, pay very little to no tax being a small company. In many countries it is legal to do so.