WRITER'S INCOME
I am a writer. In which country could I get my book published, in order to avoid income tax?
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david ingram replies:
If you live in Canada or the USA, there is no country that would work.
If you want to leave CANADA BEFORE you get your book published, then living in Panama, the Grand Cayman Islands, Ireland, the Bahamas (Arthur Hailey (Wheels, Hotel, etc. and Donald Fleming, Canada's ex Finance minister live there tax free), the Turcs and Caicos, and another thirty or forty countries would not tax your income.
However, if your book was published in Canada and your were being paid royalties, the publisher would have to deduct 25% tax and send it to the CRA BEFORE you got your many. i.e., you would only get 75 cents out of every dollar. The US would also deduct royalties at source.
And, of course, if you are an American Citizen, you are taxable on your world income no matter where you live and no matter where the money is paid from. Of course there are foreign tax credits AND SOMETIMES EARNED INCOME EXEMPTIONS OF ABOUT $80,000 APPLY ($82,400 FOR 2006 AS AN EXAMPLE - see form 2555 at www.irs.gov) �
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david ingram replies:
If you live in Canada or the USA, there is no country that would work.
If you want to leave CANADA BEFORE you get your book published, then living in Panama, the Grand Cayman Islands, Ireland, the Bahamas (Arthur Hailey (Wheels, Hotel, etc. and Donald Fleming, Canada's ex Finance minister live there tax free), the Turcs and Caicos, and another thirty or forty countries would not tax your income.
However, if your book was published in Canada and your were being paid royalties, the publisher would have to deduct 25% tax and send it to the CRA BEFORE you got your many. i.e., you would only get 75 cents out of every dollar. The US would also deduct royalties at source.
And, of course, if you are an American Citizen, you are taxable on your world income no matter where you live and no matter where the money is paid from. Of course there are foreign tax credits AND SOMETIMES EARNED INCOME EXEMPTIONS OF ABOUT $80,000 APPLY ($82,400 FOR 2006 AS AN EXAMPLE - see form 2555 at www.irs.gov) �
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