tax-law
Income tax from digital goods
<p>Consider the following scenario.</p>

<p>I am an independent Turkish game developer and I make profit by developing games for ios devices and app store. I am not happy about the high income tax rate in Turkey so I open a company in another country(say Bulgaria for convenience) with low tax rate. I stay in Bulgaria for 1 year during the development of the game and then I submit the game to app store. After that I return back to Turkey. I pay the income tax of the money that I get from Apple to the Bulgarian government every month.</p>

<p>Can I transfer money from Bulgaria to Turkey and spend it freely in Turkey? I appreciate answers for other countries instead of Turkey  to get an idea.</p>

<p><strong>Taxation is entirely dependent on jurisdiction</strong></p>

<p>It is entirely possible that what you are proposing will result in you paying tax twice &ndash; once in Bulgaria and once in Turkey. It is highly <em>unlikely</em> that you will avoid a tax liability in Turkey.</p>

<p>The problem is that the money in Bulgaria is owned by a Bulgarian corporation and needs to pay tax in accordance with Bulgarian law. This corporation is not <strong>you</strong> even if you own 100% of it.</p>

<p>To transfer the money to <strong>you</strong> it needs to pay you a salary or a dividend. This would be subject to taxation in <em>both</em> jurisdictions.</p>
