Read on Twitter
How Lawrence King pays zero income.
You’ve seen him tweet about it.
Have you ever wondered how he does it?
…or maybe if you could, too?
\\\\\\Thread\\\\\\
@lawrencekingyo
You’ve seen him tweet about it.
Have you ever wondered how he does it?
…or maybe if you could, too?
\\\\\\Thread\\\\\\
@lawrencekingyo
First Hurdle – Citizenship Country
Your country of citizenship may tax you on worldwide income, income earned in country, or a mix.
Lawrence is a UK citizen, a Uruguay resident, and a “nonresident” for UK tax.
The UK only taxes income earned in the UK for nonresidents.
Your country of citizenship may tax you on worldwide income, income earned in country, or a mix.
Lawrence is a UK citizen, a Uruguay resident, and a “nonresident” for UK tax.
The UK only taxes income earned in the UK for nonresidents.
First Hurdle – Citizenship Country
As long as @lawrencekingyo stays out of the UK for all but 46 days a year, he should maintain his UK tax nonresident status and not owe any income tax on any income he earns outside of the UK (presumably all of his income).
Hurdle Cleared!
As long as @lawrencekingyo stays out of the UK for all but 46 days a year, he should maintain his UK tax nonresident status and not owe any income tax on any income he earns outside of the UK (presumably all of his income).
Hurdle Cleared!
Next Hurdle - Resident Country
If you aren’t taxed where you have citizenship, it’s probably because you live somewhere else.
It would be great to not get taxed in your country of residence either.
Let's see how Lawrence does it...
If you aren’t taxed where you have citizenship, it’s probably because you live somewhere else.
It would be great to not get taxed in your country of residence either.
Let's see how Lawrence does it...
Next Hurdle - Resident Country
@lawrencekingyo wisely took up residence in Uruguay.
Uruguay only taxes Uruguay-sourced income, nothing earned outside.
@lawrencekingyo wisely took up residence in Uruguay.
Uruguay only taxes Uruguay-sourced income, nothing earned outside.
Next Hurdle - Resident Country
Lawrence avoids any economic activity within Uruguay that would give him Uruguay sourced income. Thus he pays no income tax in Uruguay.
He also needs to live there 183 days per year to maintain residency.
Hurdle Cleared!
Lawrence avoids any economic activity within Uruguay that would give him Uruguay sourced income. Thus he pays no income tax in Uruguay.
He also needs to live there 183 days per year to maintain residency.
Hurdle Cleared!
Last Hurdle - Everywhere Else
It would be a bummer to not get taxed in your country of citizenship or country of residence, but end up paying tax somewhere else.
Let's see how Lawrence does it...
It would be a bummer to not get taxed in your country of citizenship or country of residence, but end up paying tax somewhere else.
Let's see how Lawrence does it...
Last Hurdle - Everywhere Else
This is country by country, but in general you don’t want to:
1)Have fixed place of business in country.
2)Have employees/agents working for you in country
You also don’t want to visit for more than 183 days/year and risk tripping residency.
This is country by country, but in general you don’t want to:
1)Have fixed place of business in country.
2)Have employees/agents working for you in country
You also don’t want to visit for more than 183 days/year and risk tripping residency.
Last Hurdle - Everywhere Else
As long as @lawrencekingyo spends his 183 days/year in Uruguay, he is spending less than that elsewhere and generally avoids residency in other countries...
As long as @lawrencekingyo spends his 183 days/year in Uruguay, he is spending less than that elsewhere and generally avoids residency in other countries...
He also has to avoid a business presence in other countries. Assume this as he is making sales on the internet rather than operating.
As long as he does the above, he’s generally free to travel to all the countries he makes money in and not trip an income tax.
Hurdle Cleared!
As long as he does the above, he’s generally free to travel to all the countries he makes money in and not trip an income tax.
Hurdle Cleared!
Benefit of no Income Tax
What is the benefit of not paying income tax. To @lawrencekingyo it is 45% of the profits he would be paying if still in the UK.
Think about that! That's HUGE!
Also, a lot of tax haven countries tend to be sunny with great beaches and great food.
What is the benefit of not paying income tax. To @lawrencekingyo it is 45% of the profits he would be paying if still in the UK.
Think about that! That's HUGE!
Also, a lot of tax haven countries tend to be sunny with great beaches and great food.
What is your total income tax rate?
US: 30% to 50%
Canada: 30% to 60%
Others: Generally above 0%!
US: 30% to 50%
Canada: 30% to 60%
Others: Generally above 0%!
So what about YOU?
Are YOU tired of paying income tax?
Like Lawrence, can you find a way to legally avoid it?
Are YOU tired of paying income tax?
Like Lawrence, can you find a way to legally avoid it?
Who am I?
First, @lawrencekingyo was not consulted on this. It's my tax knowledge applied to his tweets about his tax facts.
If I can put this together from 5-6 of his tweets and a few assumptions, what could I do for you?
First, @lawrencekingyo was not consulted on this. It's my tax knowledge applied to his tweets about his tax facts.
If I can put this together from 5-6 of his tweets and a few assumptions, what could I do for you?
Who am I?
I'm Patrick the Money Tweeting Tax Advisor.
I am here to serve and save you cash.
There's no tax question you have that I can't handle.
I regularly tweet tips to save you THOUSANDS in tax every year.
...and of course, DMs are always open. Reach out anytime.
I'm Patrick the Money Tweeting Tax Advisor.
I am here to serve and save you cash.
There's no tax question you have that I can't handle.
I regularly tweet tips to save you THOUSANDS in tax every year.
...and of course, DMs are always open. Reach out anytime.
