Got a question for all Canadian paysite owners! Read! - GoFuckYourself.com

Candyman69 · 01-02-2003, 07:35 PM

What solutions have you guys gone to ,and how well has it been working out for you guys, since the new visa rules and all that jazz

Please share it here!
thx =)

x582 · 01-02-2003, 07:38 PM

I posted that earlier in another thread
-------

Scenario :

Wild Sex Inc. (Canco) is a Canadian company incorporated in Canada. Canco owns 5 paysites which generate a total of $100,000 per month.

In order to continue to do business with Paycom, Canco has to incorporate in the USA to follow the new Visa guidelines. Canco creates Hot Chick Inc. (Usaco) in Nevada.

Because the sites has to be in the USA, Canco has to sell at FMV (Fair Market Value) the site to Usaco. The price of the sites are determined by FMV with complex calculations. Let's say for the purpose of this examples that the price is $500,000.

Usaco buys the sites and contract Paycom to process the credit cards of the 5 sites.

At the end of the fiscal year of Usaco, the EBIT (earning before income tax and interest) is $800,000. Then, Usaco has to pay income tax of about (let's say) 35%.

EBIT = $800,000
IRS Income Tax = $280,000

NET INCOME = $520,000

Canco would like to receive 25% of the net income.

So Usaco pays $130,000 in Dividends to Canco.

Because Usaco pays dividends to a foreing entity, Usaco has to pay a witholding (on the behalf of Canco) of %25 of the dividends paid.

So Usaco pays $32,500 to the IRS (Witholding Tax)

Canco has to pay income tax of about (let's say) %35 on $130,000 of dividends he received from Usaco.

So Canco pays $45,550 to the CCRA (Canada Custom Revenue Agency).

Because Canco paid a tax to the IRS on the dividends and there is a DTT (Double Tax Treaty) with the USA, Canco can claim back the $32,500 paid to the IRS..

NoCarrier · 01-02-2003, 07:39 PM

http://www.mcdonalds.ca/en/employment/index.asp

"We're not just a hamburger company serving people;
we're a people company serving hamburgers."

Braincash Fred · 01-02-2003, 08:08 PM

Most of the processor can still process you without fees if you are in Canada. Ibill, PSW billing, Probilling can for sure.

Candyman69 · 01-02-2003, 08:13 PM

any canadian webmasters try , netbilling as a solution ?

heard u gotta get an offshore merchant etc etc

kinda bit too sketchy for me

NETbilling · 01-03-2003, 05:39 PM

Hi Candyman69,

Depending on your biz type, we can help you establish a merchant account right at Surefire in Canada.

Contact us:

Toll Free within the US: (888)357-8166
Outside the US: (661)252-2456

Thank you, Mitch Farber
Netbilling / Internext booth #401

01-02-2003, 07:35 PM	#1
Candyman69 Confirmed User Join Date: Jul 2002 Location: Florida Posts: 764	Got a question for all Canadian paysite owners! Read! What solutions have you guys gone to ,and how well has it been working out for you guys, since the new visa rules and all that jazz Please share it here! thx =) __________________ domain buyer

01-02-2003, 07:39 PM	#3
NoCarrier We need more free porn Join Date: Mar 2002 Location: Montreal Posts: 16,356	http://www.mcdonalds.ca/en/employment/index.asp "We're not just a hamburger company serving people; we're a people company serving hamburgers." __________________

01-02-2003, 08:13 PM	#5
Candyman69 Confirmed User Join Date: Jul 2002 Location: Florida Posts: 764	any canadian webmasters try , netbilling as a solution ? heard u gotta get an offshore merchant etc etc kinda bit too sketchy for me __________________ domain buyer

01-03-2003, 05:39 PM	#6
NETbilling Confirmed User Industry Role: Join Date: Jan 2002 Location: Huntington Beach, CA Posts: 8,584	Hi Candyman69, Depending on your biz type, we can help you establish a merchant account right at Surefire in Canada. Contact us: Toll Free within the US: (888)357-8166 Outside the US: (661)252-2456 Thank you, Mitch Farber Netbilling / Internext booth #401 __________________ Mitch Farber CEO - NETbilling, Inc. Email / Phone: 888-357-8166 / 661-252-2456 Transaction processing & 24/7 call center services with exceptional rates and flexibility, since 1998!

01-02-2003, 07:38 PM	#2
x582 Confirmed User Join Date: Mar 2002 Location: heh? Posts: 609	I posted that earlier in another thread ------- Scenario : Wild Sex Inc. (Canco) is a Canadian company incorporated in Canada. Canco owns 5 paysites which generate a total of $100,000 per month. In order to continue to do business with Paycom, Canco has to incorporate in the USA to follow the new Visa guidelines. Canco creates Hot Chick Inc. (Usaco) in Nevada. Because the sites has to be in the USA, Canco has to sell at FMV (Fair Market Value) the site to Usaco. The price of the sites are determined by FMV with complex calculations. Let's say for the purpose of this examples that the price is $500,000. Usaco buys the sites and contract Paycom to process the credit cards of the 5 sites. At the end of the fiscal year of Usaco, the EBIT (earning before income tax and interest) is $800,000. Then, Usaco has to pay income tax of about (let's say) 35%. EBIT = $800,000 IRS Income Tax = $280,000 NET INCOME = $520,000 Canco would like to receive 25% of the net income. So Usaco pays $130,000 in Dividends to Canco. Because Usaco pays dividends to a foreing entity, Usaco has to pay a witholding (on the behalf of Canco) of %25 of the dividends paid. So Usaco pays $32,500 to the IRS (Witholding Tax) Canco has to pay income tax of about (let's say) %35 on $130,000 of dividends he received from Usaco. So Canco pays $45,550 to the CCRA (Canada Custom Revenue Agency). Because Canco paid a tax to the IRS on the dividends and there is a DTT (Double Tax Treaty) with the USA, Canco can claim back the $32,500 paid to the IRS..

01-02-2003, 08:08 PM	#4
Braincash Fred Confirmed User Join Date: Jul 2002 Location: Montreal Posts: 1,589	Most of the processor can still process you without fees if you are in Canada. Ibill, PSW billing, Probilling can for sure.