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Old 04-03-2013, 06:53 AM
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ThreeCubes ThreeCubes is offline
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theres no corporation tax in china, but thats different from personal tax. if you had a company in china you make 100k then the company could keep the 100k but if you pay your self though divined you would still pay around 25% tax. If a uk company makes 100k the it has to pay 20% corporation tax so you are left with 80k then you would sill have to pay 25% tax on the dividend you pay yourself. its usually the corporation 20% tax that the big companies and jimmy carr get out of but the individuals would still pay tax on their earnings.

to setup a company in china you would have to be able to prove that there was a legit reason i.e. you have a factory there or suppliers. it not as simple as setting up in the uk.

also you can get out of paying some of the corporation tax in the uk with tax breaks. there are tax breaks for research and development and there are even tax breaks for games companies so it may not be worth setting up abroad.

once you start making money you can start paying a decent accountant to find all these loop holes and tax scams err.. i mean legitimate business practices.

it tends to be the corporation tax you can avoid and not personal tax, it basically means you will have slightly more profits to pay yourself from.

Last edited by ThreeCubes; 04-03-2013 at 07:00 AM..
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  #12  
Old 04-03-2013, 08:01 AM
squidgyjelly squidgyjelly is offline
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SOOO many thanks

Understood ))

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Originally Posted by ThreeCubes View Post
theres no corporation tax in china, but thats different from personal tax. if you had a company in china you make 100k then the company could keep the 100k but if you pay your self though divined you would still pay around 25% tax. If a uk company makes 100k the it has to pay 20% corporation tax so you are left with 80k then you would sill have to pay 25% tax on the dividend you pay yourself. its usually the corporation 20% tax that the big companies and jimmy carr get out of but the individuals would still pay tax on their earnings.

to setup a company in china you would have to be able to prove that there was a legit reason i.e. you have a factory there or suppliers. it not as simple as setting up in the uk.

also you can get out of paying some of the corporation tax in the uk with tax breaks. there are tax breaks for research and development and there are even tax breaks for games companies so it may not be worth setting up abroad.

once you start making money you can start paying a decent accountant to find all these loop holes and tax scams err.. i mean legitimate business practices.

it tends to be the corporation tax you can avoid and not personal tax, it basically means you will have slightly more profits to pay yourself from.
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