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by hhstartuper
3429 days ago
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Anyway, I don't understand what I do wrong, if:
1. I have a job in Germany and live in Germany
2. I have opened a company in Estonia (owner)
3. I do consultancy through USA services (like Upwork) for USA or UK clients and money is earned by a company in Estonia
4. How an estonian's company income (not a income of a person) be taxed by germany?
5. If i want to get money from company - it will be dividents with taxation in Estonia and rest in Germany Is something wrong in this situation? |
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1. doesn't matter. It sounds like this is your day job unrelated to the hypothetical company.
2. this is OK, you can do that.
3. this is where it becomes a little more difficult. since you are presumably working from Germany, the value is created in Germany and therefore is going to be taxed there. sounds like the obvious (and fair) thing to do to me.
4. income is taxed where it is created, not where you originate from. Consider it like this: If I'm a German and live more than 6 months in the US, my primary taxation point is the US. My origin doesn't matter, it is where I live (and in essence whose state services (what taxes pay for) I use). The same goes for companies. If the company is registered in Estonia, fine, you can do that. But if the company is actually _operating_ in Germany, well, you have to pay taxes over there _just for the business you do over there, NOT for business you do from Estonia_.
5. yes, this is personal income. You'll pay taxes in Estonia which you can match up to your taxes in Germany. In no circumstance you pay twice. Again sounds very correct to me.
To be honest I'm not entirely sure this is the actual situation, but nothing about it seems wrong :-)