4 ms·
Set up an offshore that owns the IP and pay a licensing fee to the offshore? Licensing costs would then reduce net profits and likely also taxes, right?
by wsc981 4y ago
Set up an offshore that owns the IP and pay a licensing fee to the offshore? Licensing costs would then reduce net profits and likely also taxes, right?
- moneywoes 4y agoWell when they want to withdraw the money eventually they’d get taxed right?
- conradkay 4y agoIf they withdraw 100k a year for 20 years (or more if it's invested) they'll pay a lot less in taxes than 2mil once.
- azernik 4y agoYes, but as income at a more reasonable tax bracket. By default this kind of windfall is taxed the same as someone who makes that much money every year for years; all those shenanigans let you get taxed as someone making a smaller income for a longer time. Plus, over that longer time you can list a lot of dual-use purchases as untaxed business expenses.