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Where Taxpayers and Advisers Meet

Taxes applicable to offshore companies

Asarov16
Posts:2
Joined:Fri Apr 09, 2021 3:04 am
Taxes applicable to offshore companies

Postby Asarov16 » Fri Apr 09, 2021 3:12 am

Hi, guys, I was thinking on opening an offshore company, probably in Estonia or Gibraltar, to serve as my investment vehicle in foreign countries.

But, I would like to know: if this company trades stocks and futures in UK, using an UK broker, will it be subject to any kind of tax in UK?

I ask this because I know that non-residents don't pay CGT in UK, but I don't know if a foreign company that only trades stocks and futures in UK can be considered a non-resident or if it is subject to CGT or corporate tax.

Thanks!

nathan123
Posts:5
Joined:Thu Nov 12, 2020 11:52 am

Re: Taxes applicable to offshore companies

Postby nathan123 » Fri Apr 09, 2021 11:39 am

If an offshore company managed and controlled by a UK tax residence then it would be subject to UK corporation tax.

Asarov16
Posts:2
Joined:Fri Apr 09, 2021 3:04 am

Re: Taxes applicable to offshore companies

Postby Asarov16 » Fri Apr 09, 2021 1:12 pm

Hi, in fact, I'm not resident of UK.

I'm brazilian an I am looking for an offshore company not exactly to reduce my taxes, but to simplify it, as our tax legislation is the most complex in the world and it is a hell to calculate taxes on foreign income (it is a lot easier if I only recieve dividends of an offshore company).

And the worst: in Brazil, I can't compensate profits with losses ... So, if in a month I sell A shares with a profit of $ 5000 and B shares with a loss of $ 3000, I am taxed on $ 5000 and not on $ 2000.


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