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Where Taxpayers and Advisers Meet

Foreign construction company, corporation tax

Posts: 3
Joined: Fri Jun 29, 2018 2:00 pm

Foreign construction company, corporation tax

Postby Zavaros » Fri Jun 29, 2018 2:04 pm

Would a construction company based abroad be liable for corporation tax, if it subcontracted to a UK based subsidiary company for running of the project & the labour aspect, but organised the materials/components via the foreign parent?

Posts: 633
Joined: Fri Dec 05, 2014 1:18 am

Re: Foreign construction company, corporation tax

Postby GlobalTaxAdviser » Sun Jul 01, 2018 10:56 am

Yes there is a possibility that a overseas construction company could create a Permanent Establishment in the UK hence be liable for Corporation Tax. It would depend on the Tax Treaty

In the scenario you have provided probably not unless the UK company is deemed to be an agent for the overseas company

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