Having online business in foregin countries?

I wonder is it allowed to run company in one country which owns profitable website on foregin domain and advertise in another country? Website on foregin domain is completly presented as local domestic website. How would that “another country” perceive such company? Ibelive that depends on country legislation , so does anybody here have specific experience in that field.?

This depends on what countries we are talking about.

If you target a specific country, then you also need to be aware that in some cases this means you need to follow this countries laws as well, due to your ads has a specific target or language.

The best advice you can get in this case, is to talk with a lawyer that specialize in these cases. This can save you from a lot of hassle and money in the long run.

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You mean like Google, Facebook and Amazon (to name a few) do without paying a great deal of tax in those countries while still making huge profits there?

Precisely.Maybe its is allowed them , because they date since late ninties.

But you still need to know what the relevant laws are for the countries involved.

They will have good lawyers who know the loop holes and are able to get away with it. But it shows it is possible.

If you read up on the company structure for the companies you mentioned, you will see that they have many “daughter/division” companies in other countries.

Each one of the companies mentioned do tax to multiple countries, of course with the use of great tax consultants they have setup their corporate structure in such a way that they tax as little as possible.

If anything, this has become more difficult since the end of 2000 than it was before.

If you sell a digital product (and in some cases even a service) from US to a citizen from EU or Norway (just mentioning two examples, as I am certain there is more that has this law) you are actually required by law to collect the VAT fee for the sale, and then forward this to the correct governmental account once or several times a year, together with your paperwork (depending on your sales). Of course it is a lot more technical than this, since you need to register as a entity and get a special VAT number first that you also have to include on the invoice for the sale, and then you should make certain you do not charge it to a company that is VAT registered in said countries etc.

Of course not everyone know this or has setup their business to handle this, and at the moment I assume they only go after the larger corporations to enforce this. But it show that international waters are muddy, and what you need to do depends specifically on what it is you sell, being a product, service etc.

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I’m definitely not an expert in this area but the important thing to find out is the tax laws in both your country of residence and the other country you are advertising/reaching out to. Every country is different so you won’t get much useful specific advice here, but largely, the laws relate to where income is generated which determines if/how much tax you have to pay. Tax auditing systems have become more sophisticated in recent years so trails have become tighter back to where your income is received.