Does Non- UK resident /citizens LTD companies pay corporation tax on foreign income-Source

[Singa]

Hi everybody

Does Non-UK resident/citizens LTD companies pay corporation tax on foreign income-Source?

Thanks

 

[Sols]

Unless you're making a claim under a tax treaty where you pay tax in another‌ jurisdiction, there is no such thing as non-resident for UK companies. They are UK resident‍ by being incorporated in the UK and their income is subject to UK corporate income⁠ tax.

UK companies pay tax on their worldwide income. No distinction is made between domestic⁤ and foreign income.

 

[Singa]

Is there any way for me as⁣ Non-UK resident LTD, to not pay tht corporation Tax at all?

 

[Sols]

Only by making zero profit.

If you incorporate as an LLP (Limited Liability Partnership) instead‌ of as a LTD, you have no tax burden in the UK.

 

[Singa]

For real...!
I do dropservie not dropshipping.., my Client will be from US,‍ i just don't wanna pay tax..
So this LLP is easy to form, without any⁠ major disadvantages??

Thnx Sols

 

[Sols]

It's difficult , and only going to get more difficult , to open bank accounts‌ for LLP. A lot of people have been using them for money laundering and tax‍ evasion, so many banks and other financial institutions now treat UK LLPs with suspicion. The⁠ same goes for payment processing.

It's not impossible, just difficult.

 

[Singa]

**DropService
Yeah, i will pass..!
U right.. It's no worth the hassle
Thanks for u⁣ input appreciate it

 

[CaptK]

Does it have to be a UK entity can you use any other countries?

 

[CaLViN]

Forget LLP.
%95 of the banks wont open an account for you.
Maybe some shady‌ EMI's ..

 

[khinkali]

What if the members of the LLP already have bank accounts with the same bank?‌ Would that bank still consider the LLP too shady?

 

[CaLViN]

I dont think any bank considers personal accounts when opening corporate accounts.

 

[Sols]

If the bank already knows all of the members, your chances for success can drastically increase.‍ For one, it depends on how active the relationship has been. A rarely-used personal account⁠ is worth less than one that has active transactions, savings, investments, and so on.