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pet kangaroo · 10-31-2002, 04:10 AM

OK, here's the summary, as I see it:

1. Incorporate in the U.S.

Cheapest method, problems with US regulatory bodies. Could pay US taxes on income and then pay yourself a dividend, but problems with withholding tax credits not passing on to Australia (therefore double taxed). Could try and run the company at a reduced profit (or even loss) by charging the company a fee from your Australian business, but the IRS and SEC would not look favourably upon this. ***risky*** I don't like the idea of messing with the big boys

2. Incorporate in Europe

More expensive. Looking at around AU$6000 to do this, no matter which country. Pointless registering in a tax haven because your working and earning the money from Australia, so should be taxed in Australia. Of course if you setup a bank account in that tax haven and deposit the funds there, nobody needs to know about it. England has been suggested as the best alternative, with tax treaties in place, but very expensive as I said earlier.

Just a side note. If you do want to use a tax haven, my Chartered Accountant suggested one of the channel islands (e.g. Isle of Man, Jersey, Guernsey) as they are covered by British laws. Once again the cost seems to be about the same.

3. Change billers

I've had a few billers say they are prepared to take over, but would potentially lose a high percentage of rebills.

4. I personally use iBill. I was told 2 days ago when speaking to my representative that iBill had put a proposal to VISA to establish an iBill 'portal' that all foreign webmasters effected by this regulation could possibly register with. They are apparently waiting on approval for this??? I know that this advise has to be taken with a grain of salt!! Anyone heard anything similar?

5. I've approached Australian banks about registering as a Merchant with them and doing the whole bloody thing myself. It's been two weeks and I haven't even heard back from NAB and CBA. Looks like a waste of time. Aussie banks are a bunch of hicks.

Hope someone finds some of the info useful. I'd love to hear back what others have found out and even what solutions they've come up with, if any.

10-31-2002, 04:10 AM
pet kangaroo Confirmed User Join Date: Oct 2002 Posts: 246	OK, here's the summary, as I see it: 1. Incorporate in the U.S. Cheapest method, problems with US regulatory bodies. Could pay US taxes on income and then pay yourself a dividend, but problems with withholding tax credits not passing on to Australia (therefore double taxed). Could try and run the company at a reduced profit (or even loss) by charging the company a fee from your Australian business, but the IRS and SEC would not look favourably upon this. *risky* I don't like the idea of messing with the big boys 2. Incorporate in Europe More expensive. Looking at around AU$6000 to do this, no matter which country. Pointless registering in a tax haven because your working and earning the money from Australia, so should be taxed in Australia. Of course if you setup a bank account in that tax haven and deposit the funds there, nobody needs to know about it. England has been suggested as the best alternative, with tax treaties in place, but very expensive as I said earlier. Just a side note. If you do want to use a tax haven, my Chartered Accountant suggested one of the channel islands (e.g. Isle of Man, Jersey, Guernsey) as they are covered by British laws. Once again the cost seems to be about the same. 3. Change billers I've had a few billers say they are prepared to take over, but would potentially lose a high percentage of rebills. 4. I personally use iBill. I was told 2 days ago when speaking to my representative that iBill had put a proposal to VISA to establish an iBill 'portal' that all foreign webmasters effected by this regulation could possibly register with. They are apparently waiting on approval for this??? I know that this advise has to be taken with a grain of salt!! Anyone heard anything similar? 5. I've approached Australian banks about registering as a Merchant with them and doing the whole bloody thing myself. It's been two weeks and I haven't even heard back from NAB and CBA. Looks like a waste of time. Aussie banks are a bunch of hicks. Hope someone finds some of the info useful. I'd love to hear back what others have found out and even what solutions they've come up with, if any.