UK Ltd as non resident living in Thailand?

[banafinfodafuggiano]

If I incorporate a UK LTD as a non resident sole director and let's say I live in Thailand or the UAE,


1) will the company be paying payroll tax within the UK for my salary drawings or not since I'm a non UK resident director? in that case can i still pay myself a salary or must it be dividends?
2) will the company pay corporate tax in the UK at the end of the year profits?

 

[Sols]

banafinfodafuggiano said:
If I incorporate a UK LTD as a non resident sole director and let's say I live in Thailand or the UAE,
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Why a UK LTD? Is this something that can be solved with another type of entity such as an LLP?

banafinfodafuggiano said:
1) will the company be paying payroll tax within the UK for my salary drawings or not since I'm a non UK resident director? in that case can i still pay myself a salary or must it be dividends?
Click to expand...

You can pay yourself salary and UK income tax would probably not be in scope, but it depends a bit on the exact circumstances. It's probably easier if you pay yourself dividends. Best if you discuss the exact details with a UK tax adviser.

banafinfodafuggiano said:
2) will the company pay corporate tax in the UK at the end of the year profits?
Click to expand...

Yes, UK companies are by default tax resident in UK. So the company will pay UK tax unless there is a tax treaty you can use to get the entity considered treaty non-resident.

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This is the probably the answer to your question.

 

[myhand]

banafinfodafuggiano said:
2) will the company pay corporate tax in the UK at the end of the year profits?
Click to expand...

Yes you need to file accounts and pay the tax due!

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[banafinfodafuggiano]

Sols said:
Why a UK LTD? Is this something that can be solved with another type of entity such as an LLP?


You can pay yourself salary and UK income tax would probably not be in scope, but it depends a bit on the exact circumstances. It's probably easier if you pay yourself dividends. Best if you discuss the exact details with a UK tax adviser.


Yes, UK companies are by default tax resident in UK. So the company will pay UK tax unless there is a tax treaty you can use to get the entity considered treaty non-resident.
Click to expand...

LLPs are hard to open payment gateways and banks with.
LTD is more legit. but the 19% corporate tax is not good. technically I can get paid a salary every month drawing 90% of the company profits and if I'm a resident of the UAE, then it would be a tax free salary?

myhand said:
Yes you need to file accounts and pay the tax due!
Click to expand...

Only for corporate tax and VAT, correct? not payroll tax?

 

[troubled soul]

general anti-abuse rules (GAAR)

 

[Sols]

banafinfodafuggiano said:
LTD is more legit. but the 19% corporate tax is not good. technically I can get paid a salary every month drawing 90% of the company profits and if I'm a resident of the UAE, then it would be a tax free salary?
Click to expand...

Who knows? UAE is a complete disaster at the moment with no real clarity on anything. You could conceivably be hit with another 9% CIT on the personal income if you're conducting business from within UAE.

The UK company might also be tax resident in UAE. Check if there is a tax treaty between UAE and UK and what it says.

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This is the probably the answer to your question.