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Advise on starting a stock and Cryptocurrency LTD

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  • 22-12-2020 3:11pm
    #1
    skywalsh75
    Registered Users Posts: 4 ✭


    I was hoping to find some knowledgeable folk who can clear a few questions I have.
    I want to start a Stock and Cryptocurrency trading LTD with my partner.

    1. Am I correct that a stock and crypto LTD would fall under the 12.5% tax category (active trading) for Corporate Tax?

    2. 12.5% tax would be on all the gains that I would have in stock and crypto assets sold during the year?

    update: looking into Non-Domicile resident status and foreign investment and trading.

    I will see an accountant but would like to be a bit more educated before stepping in the door. Thank you so much for any help and tips


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    #2
    relevanc
    Registered Users Posts: 55 ✭✭relevanc


    I don’t have the time to respond in greater detail but in summary you are misinformed.

    I would advice waiting for that meeting with an accountant.

    Example: Any dividend or distribution from the company would be taxed at the standard rate 20/40% plus PRSI & USC
    The 20% DWT is a withholding tax not the rate you would likely be liable to.
    Withholding tax between subs and parents are generally exempt but you are mixing up the difference between companies and actually making a distribution to a director. There is no real benefit to having a holding company if you want to extract money from the company.
    This is a broader topic that requires a chat with a good accountant


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    #3
    skywalsh75
    Registered Users Posts: 4 ✭skywalsh75


    thank you for your reply. I will be booking an appointment soon. I am an EU citizen living outside of ireland but plan to relocate soon. I also just learned that a non-dom residency may actually be the best route to further explore for my situation.


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    #4
    relevanc
    Registered Users Posts: 55 ✭✭relevanc


    skywalsh75 wrote: »
    thank you for your reply. I will be booking an appointment soon. I am an EU citizen living outside of ireland but plan to relocate soon. I also just learned that a non-dom residency may actually be the best route to further explore for my situation.

    You really need to get advice as you don’t have a good understanding of how taxes work.
    Regardless of your residence status or domicile your Irish source income is subject to Irish tax. Distributions from an Irish company is subject to Irish tax unless there is a DTA stating otherwise.

    All the loop holes that you think you can work have long been recognised and closed by Revenue.


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    #5
    skywalsh75
    Registered Users Posts: 4 ✭skywalsh75


    relevanc wrote: »
    You really need to get advice as you don’t have a good understanding of how taxes work.
    Regardless of your residence status or domicile your Irish source income is subject to Irish tax. Distributions from an Irish company is subject to Irish tax unless there is a DTA stating otherwise.

    All the loop holes that you think you can work have long been recognised and closed by Revenue.

    I try to educate myself by asking questions. I will get an accountant but after learning as much as I can first.
    I am aware of what you said regarding the non domicile resident status....I am interested because of the tax savings of foreign income that will not be remitted into Ireland. More than happy to pay taxes on what is remitted and earnings from Irish sources


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    #6
    relevanc
    Registered Users Posts: 55 ✭✭relevanc


    skywalsh75 wrote: »
    I try to educate myself by asking questions. I will get an accountant but after learning as much as I can first.
    I am aware of what you said regarding the non domicile resident status....I am interested because of the tax savings of foreign income that will not be remitted into Ireland. More than happy to pay taxes on what is remitted and earnings from Irish sources

    Your plans to avoid tax don’t hold logic.
    What tax savings on foreign income??????
    Any foreign income is taxable in its company of source or the individuals country of domicile.

    All your income will be taxed, your just making it complicated (and administratively expensive) by being taxed in multiple tax jurisdictions.

    Please just talk to a professional.


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