Hi,
I have a client (limited company). There are 3 directors one of them is non- resident in UK & EU.
All 3 directors will take a monthly salary of 12K each and dividend at the end of the year.
I am fine with treatment of resident directors but I am bit confused about tax treatment of salary and dividend of no- resident.
Any guidance shall be appreciated.
Kind Regards,
Zac
Replies (5)
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Non resident director
The director resident outside of the UK and EU will have no Personal Allowance. The rest of the operation is as per usual .
OP
The tax treatment is as follows:
1. Salary - if the duties are performed outside the UK by the non-resident then the salary is not taxable in the UK.
2. Dividend received by the non-resident will be disregarded income and there is no tax to pay on it in the UK.
However, in both cases one should check how they are taxed in the country of the director's residence
3. Personal allowance will be available in most cases - depending on which country the non-resident director is resident in, have a look here.