Big news, SWAPD family! In the coming months, we will be moving our operations to Canada. After a lot of thought, consideration, and some serious lawyer meetings, we’ve decided to set up a Limited Partnership (LP) in Ontario, Canada. Here’s the lowdown on why we’re making this move and what it means for you.
Why Canada?
You might be wondering, “Why Canada?” Here’s why: Canada offers a unique opportunity for online businesses like ours. The Limited Partnership model we’re setting up was designed specifically for companies that operate from outside of Canada. This means we get to enjoy some incredible benefits:
- No Income Tax or Corporate Tax: That’s right—zero tax on our earnings. This is possible because the Canadian LP we’re forming is meant for businesses that are not actually conducting their operations within Canada. For Canadian residents, this setup doesn’t apply, but for us, it’s a perfect match!
- Crypto-Friendly Laws: Canada’s more relaxed stance on cryptocurrency allows us more freedom in our operations, and potentially lower costs for our users.
These benefits make Canada an ideal location for SWAPD to continue growing without the tax burdens or regulatory red tape we’d face elsewhere.
Goodbye, DAC7 Fears
One of the biggest reasons we decided to move was the looming threat of DAC7 compliance. This EU regulation requires platforms to report earnings of EU members to the authorities, which understandably caused a lot of concern among our sellers.
By becoming a Canadian LP, we have a way around these requirements. While we would technically need to report earnings to the EU, the nature of our new legal structure means we can avoid the bulk of the red tape. This ensures our sellers remain safe and their privacy protected, alleviating the DAC7 scare we all faced.
What This Means for You
Our new status as a Canadian LP comes with some exciting changes:
- Potentially Lower Fees: With no income or corporate taxes, we’re exploring the possibility of eliminating the 1% crypto fee and even lowering other transaction fees. This means more money stays in your pocket.
- A More Secure Platform: Moving to Canada provides us with a more stable and secure legal environment, safeguarding our operations and, by extension, your transactions.
What’s Next?
We’re in the process of setting everything up, and it will take a bit of time, but rest assured, this move is happening soon. There’s no need for anyone to take any immediate action—our services will continue as usual throughout this transition.
Stay tuned for more updates as we move forward with this exciting new chapter for SWAPD!
Feel free to reach out with any questions or concerns. We’re here to make this process as smooth as possible for our entire community.
