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Where Taxpayers and Advisers Meet

Dividend income from oversea company

Damian Bones
Joined:Sun Jan 16, 2022 1:06 pm
Dividend income from oversea company

Postby Damian Bones » Wed Jan 19, 2022 10:50 pm


I'm looking to set up a new company oversea (USA) or offshore (Cayman Islands) for an international online business.
If I set it up from a UK LTD holding, would the dividends paid from the subsidiary to the holding be subject to corporate tax (or any other tax)?

The structure would look like:
Single shareholder (me) - UK LTD - USA LLC / Cayman Islands LTD

Would the UK company have to pay any taxes on dividends coming from the subsidiary?
Or would I only be subject to tax on dividends payed to me as Ultimate Beneficial Owner?

Look forward to your response soonest.

Many Thanks in advance

Joined:Wed Aug 06, 2008 3:39 pm
Location:Operate Nationally but based in Aberdeen

Re: Dividend income from oversea company

Postby wamstax » Thu Jan 20, 2022 1:22 am

I think that you need to consider whether the "offshore company" would be UK tax resident and therefore liable to UK corporation Tax as would any other subsidiary controlled and operated from the UK.

You should really talk to someone that specialises in company control and such as where the "offshore" company purse strings and decisions are made could considerably alter what taxes (e.g. VAT Corporation Tax etc ) could be payable. This is not the sort of forum to bank your future wealth (or lack of it) on.
regards and hope this helps
Operates Nationally with competitive costs
and email and phone contact (mob 07751720507) can be obtained from websites

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