Tag Archives: ecommerce tax

E-commerce and Mobile Commerce International Tax Planning for the Small Business

E-commerce and Mobile Commerce International Tax Planning  exists because our international tax laws were written by a man born in the 1860’s.  This is not a typo.  He grew up in the world of Pony Express and steamship commerce.

In the 1930’s he became the Chairman of the Congressional Tax Committee.  His view of commerce was the late 1800’s.  Congress has never changed our international tax laws.

These tax laws work just fine in the industrial age but  now these ancients laws create legitimate loopholes for e-commerce and cloud based businesses.

E-commerce and Mobile Commerce International Tax Planning for the Internet of Things.

We are in the age of “internet of things,” 

The  industrial age tax laws provide many unique tax savings for the e-commerce business, the contract manufacturing business, and the internet marketing business.

My easy to read book, International Taxation in America for the Entrepreneur, provides the tried and true blueprint for saving taxes for today’s E-commerce businesses.  I have the first three  chapters on this link.

The first three chapters are easy to read but are hard to believe.  I mean, is it really possible that Congress has done nothing about international tax laws since the Great Depression in the 1930s?

And there is more unbelievable events.  The designer of the tax law was born just after the Civil War.  His father served in the Confederate Army.   His parents named him after Confederate General Robert E. Lee.

And there is more.   The writer of our international tax law had only a high school education.  To him, text messaging was the telegraph.

So, get the first 25 pages, for free, of my popular book on international tax planning with an emphasis on e-commerce and cloud based products on this link.

Or buy the book at Amazon for $9.50, on this link.   By the way, Amazon has a seven day return policy.  So, if you don’t like the book, just send it back (which is easy to do as a Kindle book0

Now, if you want to take your international tax planning to the next lever, then contact me, Brian Dooley, CPA, MBT  at [email protected]

This link has another blog in saving taxes in the e-Commerce and virtual computer world.

 

International Tax Issues for the E-commerce Business

International tax issues for the E-commerce business are increasing.  In the U.S. the

internet tax planning, saving taxes, cloud tax planning ,

Saving taxes with the cloud based and e-commerce business.

IRS is slowly learning how an E-commerce business can generate tax free foreign source income by having have a specific type of software code and by having the computer server in a foreign country.

The low cost of renting space on a virtual computer server is inexpensive. 

The virtual server resides inside a real computer.  The real computer has massive memory.  The virtual server resides in that memory.   Virtual computers run faster than a real computer.

International Tax Issues in Europe for the E-commerce Business

In Europe. the EU nations are confused and bewildered by the shifting of profits to low tax countries such as Ireland.  If you are doing business in Western Europe, the international tax issues are centered on the use of tax treaties.   The income tax treaties use the “permanent establishment” rule to avoid tax in the high tax European countries.

If you own an E-commerce business, you have a unique opportunity to move your profits to a low tax state, such as Nevada or to a foreign no tax  country , such as the Isle of Man.   This tax haven country has a good source of dependable electricity.  The Isle of Man in the Great Britain power grid.

Other tax havens produce their own electricity with diesel generators.  During storms, the power goes out and so does your computer system.

International Tax Issues for U.S. owned E-commerce Businesses

The IRS would like your foreign corporation to have U.S. source income.  The e-commerce business that provides a service (such as Travelocity, the service of a travel agent), streaming content such as a podcast, music, video and radio) and E-books may like using Canada instead of the Isle of Man.

A foreign corporation that merely has its computer server in Canada is not considered doing business in Canada.  Canada has good source of electricity.

My only issue with Canada is that someday they may change their tax law.    But for now, the set-up costs for a British Virgin Island company hosting their E-commerce website in Canada is cheaper than the Isle o f Man.  Additionally, it is faster.

Setup time in the Isle of Man is about four months.  Setup time is Canada is a few weeks.  Canada is cheaper and faster and the isle of Man is more stable from the point of future international tax issues.

The video below is from my international tax seminar of the Society of Certified Public Accountants.   I explain with easy to understand examples the theory of tax law that allows an offshore ecommerce business to avoid taxes.

While the seminar is from 2011, the tax law remains unchanged.

If you want help with your international tax issues, then email me, Brian Dooley, CPA, MBT at [email protected].

You can learn more about tax planning in the cloud on this link.

Easiest to Read International Tax Book for the Contract Manufacturer and E commerce

SMOKE STACK INDUSTRIAL AGE

Is you tax planning using last century’s smoke stack tax laws?

The 21st century business as a unique tax advantage.  U.S. international and offshore tax laws are written for the 19th century industrial age.   The tax laws were written by men born in the 1800’s.

Just think about contract manufacturing and air cargo or cheap shipping.  When tax laws were passed in the 1930’s,  manufacturing was by one’s factory.  E-commerce was not even a concept.

Here more on the best foreign tax planning book and also the easiest to read (in just two hours).  Amazon has it on sale (on this link) for only $9.50 or read the first three chapters for free by clicking on this link.