UK Ltd as non-resident taxes

[Dontelgel]

Hello,
I have incorporated an LTD in UK. I live in Lithuania (which is where I am from). I do dropshipping from China to Lithuania but right now through UK LTD. The problem is that my payment provider is Lithuania based and I have made a contract on my name but the money receiver is my LTD (to Wise). I ran into problems, where do I pay taxes? UK or Lithuania? Because I am selling with UK LTD to Lithuania so that would mean I have to pay taxes to UK? Because if I still have to pay taxes in Lithuania, I literally have no idea which taxes since there's not just 1 of them and they vary, for example if you sell with company in Lithuania, you have to pay one type of taxes, if just with a certificate, another type of taxes.

Thank you.

Or do I pay corporation taxes from sales made in Lithuania to UK but for the dividends I pay out to myself - in Lithuania?

Last edited: Dec 18, 2022

 

[Sols]

Well, as I wrote in your previous thread, you should've formed the company in Lithuania. This is the kind of mess I warned you about.

You need to look at the UK””Lithuania tax treaty and see where your company is tax resident. By default, the company is tax resident in UK (so you pay tax there) and in Lithuania (so you pay tax there as well). That's pretty simple but I suspect you don't want to pay double tax, which is what the tax treaty is there to help you with. It's possible the company can be considered non-resident in UK and only tax resident in Lithuania.

If you're not familiar with tax laws and reading tax treaties, I'd recommend speaking with an accountant/lawyer.

Dividends are probably only taxed in Lithuania, though, but that's another question for a local expert.

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This is the probably the answer to your question.

 

[JohnLocke]

Sols said:
Well, as I wrote in your previous thread, you should've formed the company in Lithuania.
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OP You may want to only open one thread about the same topic!

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[myhand]

Sols said:
If you're not familiar with tax laws and reading tax treaties, I'd recommend speaking with an accountant/lawyer.
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you want to listen to this user OP

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