4 ms·
The problem with the EU wide Inc, is who gets the tax revenue? Is it the country you live in or the country where most of your customers are based in? What if
by rdm_blackhole 2y ago
The problem with the EU wide Inc, is who gets the tax revenue?
Is it the country you live in or the country where most of your customers are based in? What if your customers all live outside the EU?
France is never going to accept that you live in France but your business pays it's taxes in Germany or vice versa.
Also I don't agree with the author's take that Europe is not risk averse. It is risk averse.
I tried to open a bank account in USD at my local bank because I wanted my accountant to have access to all the deposits/invoices for my business. I had to answer a form with 50 questions as to why I needed this bank account.
I was told the process would take months potentially. the result is that 6 months later I never received a response and now I am using Revolut as my bank.
It's the small things really.
About the lack of English, that is absolutely true but not because EU kids don't spend enough time learning English, it's because of the teaching style and the culture.
In France all the movies/tv shows are dubbed in French. In Sweden it's not. Guess who speaks better English?
In Sweden I hear kids as young as 11 or 12 talk in English with their friends because it's cool. In France, there is no way in hell that this would happen.
Finally the way languages are taught in France is absolutely terrible. There is a lot of emphasis on reading and grammar rules but barely any talking.
The result is that a high school graduate who has spent almost 8 years leaning English 2 hours per week at school can't hold a normal conversation in English for more than a few minutes.
- samuelstros 2y ago> The problem with the EU wide Inc, is who gets the tax revenue? Every country proportional to the profit they generate and the tax rate they set? Companies overall EU profit $100M: - France $30M profit taxed at 20% = $6M - Germany $50M profit taxed at 25% = $12.5M - ... Seems like it "just" needs an accounting system that works across the EU.
- rdm_blackhole 2y agoYou can't have that because each EU country has different incentives. Some countries tax salaries more than capital, other let you reduce your capital gains or offer a flat tax in certain circumstances. I forgot to mention, but if this EU Inc gets then created who gets the capital gain tax? Should it be divided in 27 or should it prorated to where you lived or where your customers live? Don't get me wrong, I would love to see this happen but just like most of the things in the EU, it would become a nightmare to manage and add even more bureaucracy. It's like VAT collection. We have to rely on middle-man companies to do the proper collection because most countries have vastly different rules regarding VAT. As a business owner every minute I spend on paperwork is a minute less I spend on my business.
- samuelstros 2y agoYou seem to mix corporate vs personal taxation. Personal taxation is always your country of residency. If you hold stock in an EU Inc., the capital gains tax in your country of residency would apply.