[alexanderchr]

Be really careful with this unless you know what you’re doing. Setting up a foreign entity that only collects revenue and pays royalties is a known trick and will be looked at very closely by tax inspectors. Worst case they will consider the foreign entity artificial and tax it as if it was a local company.

My recommendation would be to keep things simple with a local company, and start worrying about complex structures once you have enough revenue for it to make sense.

[rnewme]

But the local bureaucracy is the problem, not the tax. I would actually pay more tax in my scheme, but not have to deal with complex tax tracking, remitting etc..

[alexanderchr]

Yeah I understand where you're coming from. I'm just saying that the tax authorities might not see it that way, and you can end up in really tricky situations unless you have sveral layers that cover you from responsibility. Hence my recommendation to keep the company structure simple even if it means more bureaucracy.

[rnewme]

I appreciate your advice, and you're right.