Payment processors & Offshore companies

Discussion in 'Indie Business' started by Sindarin, Jul 17, 2011.

  1. Sindarin

    Sindarin New Member

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    I live in Greece, I was planning to take my business to next level and open a gamedev company or/and offer my services as a freelancer. Problem is both solutions cost way too much for its own good due to our busted tax system and bad economy we have.

    A friend suggested the creation of an offshore company to handle this problem. My question is: will there be any issues with payment processors such as BMT or plimus?
    Will the bank see too much cashflow and suspend payments even if it's for an offshore company? Does BMT/plimus handle payments without the need for an offshore company?
     
  2. Bram

    Indie Author Greenlit

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    Dude, are you serious?
    Man, just pay your taxes.
    If it was not for this attitude, the Northern states would not have to bail out Greece.
    I used to live in Holland, where we pay 52% income tax, and now that money can be used to bail out Greece because its citizens want pensions, yet no taxes?
     
  3. Vino

    Vino New Member

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    I would worry about making money before I worry about paying taxes. Making money in game dev is harder than you think.
     
  4. Sindarin

    Sindarin New Member

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    You two completely missed the point. I was not asking how to avoid paying my taxes or any other "crook tactics", I am worried that the Greek tax agency might mistakenly accuse me of money laundering and suspending my bank account even if I do sell through BMT or other processor.

    And there are cases this is done in purpose here, is what scares people trying modern alternatives, such as creating an online business.
    The tax agents always try to find loopholes in order to fine your legal actions.

    The offshore "tactic" seems a completely legal approach to selling goods worldwide abiding with the country's law that the company is registered in.
     
    #4 Sindarin, Jul 18, 2011
    Last edited: Jul 18, 2011
  5. Oaf

    Oaf
    Original Member

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    I also live in Greece, with a UK ltd company. You can set up a UK company online, using someone like http://companyregistration.uk-plc.net/index.htm - it's very simple. I've got accounts with Alpha Bank in euros, dollars and pounds, and over the last few years I've been fortunate enough with my business to have quite a bit of money flow through them - via offshore bank transfers, paypal and moneybookers. The bank hasn't said a thing. Remember to get a "pink slip" from the bank every time you move or withdraw that money though, if you're planning on submitting any form of Greek tax return.

    As for the "Man, just pay your taxes" - perhaps when the tax man stops demanding 30,000 euros in bribes in order to prevent them from fabricating 120,000 euros in fines against you, as has just happened to a friend of mine, or perhaps when they stop fining people 1,000 euros for a single spelling mistake on a tax form, then perhaps I'll consider bringing my business to Greece. There's a lot more to the situation than you think.
     
  6. Thomas@BMT

    Thomas@BMT New Member

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    It's no problem at all.

    In fact, it's probably simpler if we do it than if you do it yourself. When you receive your payment from us it's pure income. All taxes, including EU VAT taxes are collected and paid by us (BMT).

    We work with a few developers in Greece, never a problem. Good luck with your project!
     
  7. Sindarin

    Sindarin New Member

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    Sadly what Oaf speaks of it's true. And Thomas@BMT, that sounds really great.

    Thank you both people for your valuable input.
     
  8. gamer247

    gamer247 New Member

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    Thomas, what do you mean by you are paying all taxes?
    I cant find a single word about taxes on your web site.
     
  9. rioka

    rioka New Member

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    Thomas works for BMT which is a payment processor. They specifically work with software's among whom are made by indie game dev's. He's saying game dev's don't have to worry about paying international taxes as those are taken cared of by BMT themselves (i.e. BMT pay the taxes on developers behalf).
     
  10. Roman Budzowski

    Indie Author

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    I am sure it is abuse to say ALL taxes are paid. EU VAT,yes, US sales tax, yes, but I am sure BMT doesn't pay income taxes (and other if applicable). They can't. They do not know what is your profit, so how can they know how much to pay.
     
  11. gamer247

    gamer247 New Member

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    Yes Roman, that is what I thought. They might pay for EU/US VAT for you. But you still have to pay your tax on profits in the country where you reside? Unless you have an offshore.
    Btw Thomas I'm going to use BMT too soon, but you guys need more inforamtion about taxes on your site. Taxes are a pain...
     
  12. Thomas@BMT

    Thomas@BMT New Member

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    Is an explanation of what we provide in the way of tax collections and payments what you'd like to see better explained? If so, I will certainly address that.

    In a nutshell, we collect all taxes and pay them to the appropriate authorities in a timely manner (never made a late tax payment in almost 20 years).

    What we do not do is report your profit (because as mentioned above, how could we know?) and pay your income tax.

    Personally, I have always thought if I were a developer using a payment processor just to avoid having to collect, record, and pay taxes all over the place would be one of the best things about it.
     
    #12 Thomas@BMT, Nov 22, 2011
    Last edited: Nov 22, 2011
  13. lennard

    Moderator Original Member Indie Author

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    I've done business with BMTMicro for years and have loved the experience. My only issue has been that I've had to drift towards using TrialPay exclusively in low cost cases - would be great to see some kind of system on BMTMicro that lets me do <$2.99 sales without a minimum charge.

    I understand the issues involved for the payment processor and I don't know that I'm asking for BMT Bucks or anything... but it would be great to see BMTMicro evolve to support these kinds of payments.
     
  14. Jack Norton

    Indie Author

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    Well you could create VC in your game. I am not an expert of MMO, but I recently played some and they were all selling VC in BULK, which means pay $9.99 to get 900 wolf-bucks, pay $19.99 to get 2100 wolf-bucks and so on. I've yet to see a game where you can exactly be billed for amounts less than $4.99.
     
  15. lennard

    Moderator Original Member Indie Author

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    Really? Trialpay for one (I get all of the money from a sale there, regardless of price) but any of the micro-transaction systems, including Facebook, allow you to do this.

    As a player I don't want to buy into a closed VC when all of the other options are available to me. I expect I'll be hooking up to Facebook credits at some point in the future but I like working with BMTMicro and hope that they can offer something along this line in the future as well.
     

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