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Where Taxpayers and Advisers Meet

Permanent Residency

Liveraa
Posts: 4
Joined: Thu Jun 07, 2018 11:01 pm

Permanent Residency

Postby Liveraa » Tue Aug 14, 2018 2:17 pm

Good Afternoon ,

I'm actually facing a dilemma with my corporate taxation, i created a company in the UK in 2016 with companiesmadesimple which is an agent located in the UK specialized in the incorporation of UK Company. Actually, i managed to maintain my company with my personal funds and today i earned some overseas profits mainly in Malaysia, i want to understand if i have to pay UK corporate tax or if i can try to ask for exemption for foreign profits. Indeed, i am non-resident in the UK and i live with my girlfriend in France , my company is a ltd in the UK and most of my time i live in France but my friend is allowing me to gain money and he lives in Malaysia , he's the one who manage and sign all the contracts , can you guide me through the process to declare tax ?

Thanks guys

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

Re: Permanent Residency

Postby GlobalTaxAdviser » Wed Aug 15, 2018 12:05 pm

Hi

You probably to pay tax on profits where you are controlling the company as well as from the country where you have essentially created a permanent establishment i.e Malaysia. Depends on the Double Tax Treaty

You could end up paying double tax but getting tax relief where the place of effective management is i.e France

I think you should be fine from the UK perspective. I suggest if you business is growing that you take professional advice is minimise tax

Kind Regards

GTA

Liveraa
Posts: 4
Joined: Thu Jun 07, 2018 11:01 pm

Re: Permanent Residency

Postby Liveraa » Wed Aug 15, 2018 7:03 pm

Thanks for the advice , I'm planning to ask some advice from accountants or tax advisor. I just wanted to know if I could pay my UK CT and obtain tax relief from others juridictions ? is that possible ?

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

Re: Permanent Residency

Postby GlobalTaxAdviser » Thu Aug 16, 2018 1:42 pm

Under DTA your company isn't resident in the UK nor you have created a permanent establishment in the UK. UK company is dormant. Maybe worth closing down the UK Company ?

Malaysia and France would have primary taxing rights.

Kind Regards

GTA

Liveraa
Posts: 4
Joined: Thu Jun 07, 2018 11:01 pm

Re: Permanent Residency

Postby Liveraa » Thu Aug 16, 2018 4:12 pm

Thanks for the answer,

I'm currently calling some tax advisers or accountants to obtain some answers regarding my situation, but they are clear : i need to pay tax in the UK because i did revenues in Malaysia using my UK company so all profits have to be taxed in the UK since i signed all the contracts using my UK company details. Maybe i was wrong at the beginning and wasn't enough clear regarding my situation but thanks a lot for the answer guys

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

Re: Permanent Residency

Postby GlobalTaxAdviser » Thu Aug 16, 2018 7:04 pm

Yes if you used your UK Company and the contracts were signed with the UK company then yes you should file in the UK

Kind Regards

GTA


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