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Incidentally, in a neighboring EU country (Poland) the tax system has a bizarre nod towards solo entrepreneurs running a SaaS: you can choose simplified revenue

by jwr 2y ago

Incidentally, in a neighboring EU country (Poland) the tax system has a bizarre nod towards solo entrepreneurs running a SaaS: you can choose simplified revenue-based taxation and fall into the 8.5% bracket. 8.5% tax on revenue is really good. And this is very specific: it applies specifically to SaaS businesses, most revenue-based rates are higher. If you decide to sell your business, assets are taxed at 3%.

lifestyleguru 2y ago
And how many brilliant startups Poland bred? Poland is post-Communist state where you're at the mercy of a clerk, disfunctional courts, and bloated buggy IT systems.
- Rinzler89 2y ago
  CD Projekt Red?
  - lifestyleguru 2y ago
    They are older than Google, launched in the first half of the 90s. They bootstrapped in fiscal and political realities incomparable with those described three comments above.
bluecalm 2y ago
Poland still has tax friendly system towards self employed people. Usual deal you get is 19% tax (recently raised to 23.5%) so you avoid double taxation as a company (where you first pay corporate tax and then income tax or capital gain tax as an individual). This makes sense as you don't enjoy privileges of limited liability. Somehow most other countries have it backwards though. The 8.5% thing you talk about is not really that great (it's revenue based so it's out once you have significant costs/partners you pay). It's done to simplify accounting. It only makes sense for small one person companies and it makes sense to incentivize people to start businesses - a wild concept in Germany (or most of other EU countries).
- jwr 2y ago
  > The 8.5% thing you talk about is not really that great I would be inclined to disagree — it is absolutely wonderful for solo entrepreneurs. You might say "it only makes sense for small one person companies", but that's exactly what my business is and intends to be. You can easily run a SaaS business with 90%/80%/75% margins (gross/operating/net), which I think is really hard to beat anywhere in the world. For people who want to stop working for "the man", become in control of their lives and earn money from a SaaS business, this is great.

by jwr 2y ago

lifestyleguru 2y ago

And how many brilliant startups Poland bred? Poland is post-Communist state where you're at the mercy of a clerk, disfunctional courts, and bloated buggy IT systems.

Rinzler89 2y ago
CD Projekt Red?
- lifestyleguru 2y ago
  They are older than Google, launched in the first half of the 90s. They bootstrapped in fiscal and political realities incomparable with those described three comments above.

bluecalm 2y ago

Poland still has tax friendly system towards self employed people. Usual deal you get is 19% tax (recently raised to 23.5%) so you avoid double taxation as a company (where you first pay corporate tax and then income tax or capital gain tax as an individual). This makes sense as you don't enjoy privileges of limited liability. Somehow most other countries have it backwards though. The 8.5% thing you talk about is not really that great (it's revenue based so it's out once you have significant costs/partners you pay). It's done to simplify accounting. It only makes sense for small one person companies and it makes sense to incentivize people to start businesses - a wild concept in Germany (or most of other EU countries).

jwr 2y ago
> The 8.5% thing you talk about is not really that great I would be inclined to disagree — it is absolutely wonderful for solo entrepreneurs. You might say "it only makes sense for small one person companies", but that's exactly what my business is and intends to be. You can easily run a SaaS business with 90%/80%/75% margins (gross/operating/net), which I think is really hard to beat anywhere in the world. For people who want to stop working for "the man", become in control of their lives and earn money from a SaaS business, this is great.