UK Ltd, owner and director non resident - what options for bank accounts?

[Marzio]

If you are talking about 0% US withholding tax rate‍ on motion pictures royalties there's bad news for you because both UK and Cyprus have⁠ a limitation on benefits article in their double tax treaty with USA that prevents what⁤ you are planning to do.

Briefly you will not be able to achieve 0% US⁣ WHT on motion pictures royalties if you are not a UK or CY tax resident.⁢

How are you generating motion pictures royalties? Youtube? App?

 

[JustAnotherNomad]

Then why didn't you want‌ to use a LT bank or EMI?

That's not how⁠ it works.

Wise doesn't⁣ onboard LT companies?

Yeah, it shows. Get some proper advice before you get yourself in trouble.

 

[Hmmm]

Youtube. But if company is uk⁢ tax resident, what's the problem? Only shareholder and director is non resident, but company pays︀ taxes in UK.

Wise don't︁ onboard from a lot of countries. I still in the waiting list for my Malta︂ company for Wise and Revolut.

GoSolo suspended onboarding new users.

 

[Marzio]

The company‍ will pay UK taxes but that's not what bothers US.

They don't want people to⁠ avoid their withholding taxes because that's money lost for them so they were one of⁤ the first countries that included limitation on benefits clause in their double tax treaties.

So you correctly identified that UK and Cyprus have 0% US WHT on motion pictures royalties⁣ but you failed to read the details in their double tax treaties.

If you did⁢ you will know that to be able to claim treaty benefits AKA 0% withholding tax︀ you need to satisfy certain requisites.

This for example is the UK-US double tax treaty︁, read carefully article 23.

 

[JustAnotherNomad]

If you're in LT, LT will regard it as tax resident under domestic rules. The‌ company likely wouldn't even be tax resident in UK under the UK-LT tax treaty.
Please get qualified advice or you will get yourself in trouble.

 

[Marzio]

Unfortunately LT has 10% WHT on motion pictures royalties.

 

[Hmmm]

I think I don't know exactly how that WHT works, that's the main problem from‌ which comes this idea about uk/cy companies.

I'm not sure if I correctly understood:
Let's say youtube project earned 100k, WHT rate 10%, WHT took 10k euro taxes in US.‍
Came financial year end, let's say company from various projects has 100k profit, in LT⁠ income tax is 15%, so 15k euro goes to taxes, but 10k I already paid⁤ in US, so in general left to pay only 5k?

 

[Marzio]

"A company may reduce tax payable on certain foreign-sourced income in Lithuania‍ by taxes paid on that income in a foreign country if that Lithuanian company has⁠ received appropriate notice from that foreign country. The tax credit may not exceed the CIT⁤ rate payable in Lithuania."

https://taxsummaries.pwc.com/lithuania/corporate/tax-credits-and-incentives

 

[jafo]

Not sure If I'm allowed to add a link to Twitter here, but search⁠ for Wise horror stories on Twitter and Facebook. They literally are robbing people. I have⁤ a lawyer friend in the UK and I had him look into Wise for me.⁣ His response after due diligence was: "You would be in better hands depositing your money⁢ into the hands of a random on the darkweb". Seriously, that is exactly what he︀ said.

 

[lifeisfun]

Is Revolut Ltd acct, not a Revolut Bank acct usable with Stripe?

 

[JustAnotherNomad]

Then why don't you just start by talking to a LT acountant? That should be‍ the first step.

 

[bubbledouble]

they will, at least in the past‍ it was no problem. Otherwise try The Kingdom Bank, Wallester and also consult @MichaelUniq and @Gediminas

 

[Specialist2025]

Clarity Global opens accounts (Sepa, UK Local and Swift) for UK companies with a non‌ UK resident UBO

 

[SCHLOSSFINANZ]

thanks for letting us know that Clarity takes everyone lol

 

[Specialist2025]

And with a good discount for everyone coming from OCT 😉