3 ms·
I don't know if this applies to the States but at least in some European countries if you ever move to another country you are taxed for what you would have bee
by hijodelsol 5y ago
I don't know if this applies to the States but at least in some European countries if you ever move to another country you are taxed for what you would have been expected to pay in taxes based on the profit the company made in the last years.
Paying yourself a high salary (as long as it's reasonable,
so as not to arouse suspicion of hidden profit distributions) allows the business entity to not make any profit on paper and therefore allows you to move to another country without having to pay this "exit tax".
Disclaimer: This is my understanding of the situation, I'm neither a lawyer nor a tax professional and this is not financial advice.
- alisonkisk 5y agoBut you pay income tax on the income .