Working for own UK company whilst living in UAE

[daniels27]

Yes. Correct. Also Hong Kong won't rule until you file taxes and then may not grant⁠ unless you proof tax payment elsewhere. I would strongly advise against Hong Kong for that⁤ purpose. There is a reason why Hong Kong agents help the Chinese with BVI companies⁣ and no longer Hong Kong.

Singapore is easier. But sure about above post regarding office⁢ but Sovereign tells me otherwise.

 

[Xshore]

Is this a new trend? I have friends with approved‍ offshore status, and it's generally valid once approveduntil your situation changes.

 

[daniels27]

Why would Singapore use HKD for tax brackets? Who wrote this?⁣ I would seriously question this source. Also the other analysis of Singapore does not align⁢ with what Sovereign told me.

No, not new.

https://relinconsultants.com/hong-kong-offshore-tax-exemption/

 

[Xshore]

Ok, but I know several that's been‌ through a irs review for the offshore status, and succeeded without proving tax residency /tax‍ paid elsewhere.

 

[daniels27]

Yes. Possibly. Depends on the activity. If you offer IT services from UK, they won't let‍ you pass pretty much for sure as they have to play fair to their treaty⁠ partners too.

 

[yngmind]

Haha, that's weird indeed. It was written by the⁠ Statrys, sine they are in HK, they are using HKD - Hong Kong vs Singapore⁤ for Business in 2024

 

[daniels27]

Don't trust them too much on Singapore. They are from Hong Kong.⁠ They won't like Singapore for sure.

 

[daniels27]

Depends on the⁢ country. For Switzerland, they can rule otherwise if the company is not effectively managed from︀ Switzerland.

 

[JustAnotherNomad]

Indeed it seems like Switzerland has‍ rules that are similar to Singapore's. So why not use a Swiss company then?

 

[daniels27]

I am thinking about it.‍ But in Switzerland, you have to apply for an advance ruling and then, it may⁠ still come to some discussions where and if it is managed. Also, they will still⁤ tax a bit for having a (mandatory) registered office address.

 

[JustAnotherNomad]

Thank you, really great input! Great to have you here, you've added a lot of‌ value to the forum!

 

[yngmind]

HK is still better, because there is no VAT

 

[JustAnotherNomad]

VAT has nothing to do with this...

 

[yngmind]

It's not about‌ the salary, it's about the discussion hk vs sg

 

[daniels27]

Yes, but it does not matter. Singapore tax free is only possible for‌ non Singapore revenue, which by definition is VAT free.

 

[JustAnotherNomad]

A SG company‍ selling B2C to EU or US customers would still have to pay VAT/sales tax in⁠ most cases. Otherwise foreign companies would have a competitive advantage.

 

[daniels27]

Guys, what is this discussion? The topic reads "Working for own UK⁠ company whilst living in UAE", then we are discussing HK vs. SG incorporation for offshore.⁤

When selling to EUSSR, there is no difference between a HK and SG company. When⁣ selling to SG, there would be, but this is out of question as this was⁢ not the question. But for completeness, if you want to sell to SG, you better︀ take a HK company. This has nothing to do with VAT, but because the SG︁ revenue would be taxed with a SG company.

And yes, when you have a SG︂ offshore company, you probably pay some VAT to your service provide which you may or︃ may not be able to recover. But I do not believe that those make the︄ difference whether HK or SG is cheaper.

 

[Billybob69]

Thank you for the discussion guys, however in the situation I am describing, the UK‌ company already exists, and a new company would only be useful going forward for future‍ business.

If anyone has other ideas how one could in theory have a tax free⁠ salary whilst working for a UK company, I'd love to hear it, I think perhaps⁤ a jurisdiction which

A) Does not tax FSI
B) Has no tax treaty with the⁣ UK
C) Has no CFC rules

May be an interesting option, for example Paraguay, but⁢ I'd like to hear other suggestions if there are any. Or if I am missing︀ something vital.

 

[daniels27]

"Foreign sourced⁣ income" usually refers to passive income. "Foreign income" refers to active income from abroad. We⁢ are talking about foreign income here. The problem is that while there are many countries︀ which do not tax foreign income, they normally only do so if you perform the︁ work outside the country of residence. Furthermore, you are not just working but managing a︂ company, which is a major difference.

I may be missing something, but what is the advantage of︄ this? That UK won't consider the company tax resident elsewhere? You may even fall under︅ this without treaty IMO.

There are many of those. But your problem is the place of effective management. @Checkmelater proposed such setup for Qatar
https://www.offshorecorptalk.com/threads/my-new-0-tax-setup-in-qatar.43853/
It may work for GCC countries due to the lack︆ of a PE concept. But no laws does not necessarily mean it is meant to︇ work, you may get problem at some point.

Yes, something like this. Panama, Paraguay,︊ etc. Even better is to live in 3 countries or in airplanes, where it will︋ most likely work very, very long.

 

[Billybob69]

Thanks for the information. In this case it would be very︆ feasible for the director to live between multiple countries as a tourist, not picking up︇ tax residence anywhere, they are a British citizen. I’ve heard many mixed opinions on whether︈ it is possible to be tax resident nowhere, the UK seemingly allows this but I︉ think getting a salary for a UK company and trying to claim this is asking︊ for trouble…