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Comment by vertis

3 years ago

Not forgetting that the government is ALSO taking money on the other side of the salary as well.

I much prefer Estonia's system of taxation. Flat 20% on share dividends. Any money that stays within the business (or gets spent on wages, other expenses) isn't taxed (aside: there are social and income taxes on wages).

Coming from Australia's system it's just so simple to be compliant. Feels designed to help businesses grow.

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robertlagrant  3 years ago

I have been thinking this for a while. Corporation tax creates so much work, and it would be better to tax certain inflows of money.

So my salary is taxed; my dividends are taxed; my purchases are taxed with VAT, that sort of thing.

Stop making companies employ armies of accountants to figure out all the tax credits/implications/corporate structures etc so the government doesn't take too much.

  • vertis  3 years ago

    I pay the Estonian accountant (xolo.io) ~100€ a month and that covers just about everything required to keep the company in good standing. Minor amounts of admin to sign off the annual report (all done with my smart card).