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.

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[Singa]

Sols said:
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.
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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.

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[Singa]

Sols said:
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.
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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.

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[Singa]

**DropService

Sols said:
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.
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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]

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

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