Recent tax implementations in Norway and Germany have sparked controversy among the startup community. Both countries have adopted an 'exit tax' targeting startup founders, requiring them to pay over 30% of their startup's valuation in taxes if they decide to leave the country, regardless of whether they have personally profited from the startup. Critics argue that this approach to taxation on unrealized gains and paper value, including both a wealth tax and an exit tax, is detrimental to the startup ecosystem. It's described as a harmful measure that stifles innovation and could potentially drive startup founders to consider incorporating in more favorable jurisdictions.
seriously insane. #Norway makes you pay an exit tax on the money raised for your company.. AI would not be this stupid. Maybe it's time to let it run things... @ASvanevik https://t.co/GlMiIFXt1i
This is obviously correct. Maybe if the government did something helpful with our money I would feel differently, but then it would just make sense to pay taxes voluntarily https://t.co/ZGjHQ0D6iP
Germany and Norway have both adopted an "exit tax" on startup founders. Sure. So what's the best place to incorporate as a Euro founder now? π€ https://t.co/GlEDCm9Cfw
Norway has sadly gone from a bad to a horrible country to start and operate a startup in. Now with two taxes on unrealised gains and paper value (wealth tax and exit tax). A toxic startup-killing tax cocktail with no real reason to exist beyond ideological tunnel vision. https://t.co/M6MojrBq65
βIf you leave the country having raised money for your startup, youβll now have to pay an exit tax of >30% of your startupβs valuation - even if you never got a dollar out of the startup personally!β π³ Goddamn. https://t.co/3OZHeMa47g
I believe taxes are a fundamentally important and ethical feature of society and I happily pay them. But taxes should be on realised income and gains, not on hypothetical future, very risky gains. Taxing startups like this is stupid and actively harmful https://t.co/kNLiKnHSKA