If I set up a corporation in Switzerland. Can I avoid paying taxes in the US. I will pay all Swiss taxes?
I am a commercial mortgage broker. I have no inventory or employees. My entire business is done via phone, fax or email.
- Bostonian In MOLv 71 decade agoFavorite Answer
Where the business is incorporated doesn't matter, it's where the income is earned AND your citizenship and residency that matter.
As a US citizen or resident, your world wide income is subject to US taxation regardless of where you live or where you earn the income.
BTW, Swiss taxes are higher than US taxes. The Swiss Federal income tax caps at 11.5%, BUT Cantonal (local) income tax is about double that. Swiss Social Security and Unemployment taxes are similar to US but are levied on all income. Capital gains taxes are generally higher than in the US. And health insurance is mandatory.
- Anonymous1 decade ago
As a US citizen, you are responsible for paying US taxes. You can take a credit for any taxes paid to a foreign jurisdiction.
- 1 decade ago
IF YOUR A US CITIZEN OR STATE RESIDENT.
YOU BETTER PAY YOUR INCOME TAXES NO MATTER WHERE YOU ARE IN THE WORLD.