Non Resident Directors Salary

If director never came to UK still its subject to PAYE?

Didn't find your answer?

Hi

There is much information available if non resident UK company director arrive to UK then he is liable to UK taxes if certain criteria not met for his stay. Also reciprocal agreement required to gain NIC exemption etc. But what if director never came to UK and perform all his tasks from his country (outside EU) as normally the rule is any director's fee is subject to UK taxes can be claimed in resident country tax return under double tax treaty agreement. Is there any exemption available so that non resident director only pay taxes in his own country without running UK Paye?

Replies (3)

Please login or register to join the discussion.

RLI
By lionofludesch
19th Mar 2021 07:26

It would have been helpful to say what country you were dealing with. However, the usual effect of double taxation treaties is that the taxpayer ends up paying tax at the higher of the two countries' rates.

Thanks (0)
Replying to lionofludesch:
avatar
By ayaz786ahmd
19th Mar 2021 07:40

Hi, thanks for the reply. Its Vietnam and yes we may have no choice but to pay higher taxes under DDT

Thanks (0)
ghm
By TaxTeddy
19th Mar 2021 08:24

There are two issues here - the obligations of the employer and the liability of the employee.

The answer to the question is in the first part - an employer has obligations to report under PAYE for all of its employees so technically a non-resident employee will always be within PAYE if they are on the UK payroll. Whether they actually pay tax and national insurance is down to their individual situation.

Thanks (0)