I have a client UK company but directors based in US. They have no employees in the UK and there is no permanent establishment in the UK under Article 5 of the US and UK DTA.
The invoicing happens from the UK company and monies paid in the UK bank account.
I looked at the US and UK double tax treaty
ARTICLE 4 Residence 1. Except as provided in paragraphs 2 and 3 of this Article, the term "resident of a Contracting State" means, for the purposes of this Convention, any person who, under the laws of that State, is liable to tax therein by reason of his domicile, residence, citizenship, place of management, place of incorporation, or any other criterion of a similar nature. This term, however, does not include any person who is liable to tax in that State in respect only of income from sources in that State or of profits attributable to a permanent establishment in that State.
ARTICLE 7 The business profits of an enterprise of a Contracting State shall be taxable only in that State unless the enterprise carries on business in the other Contracting State through a permanent establishment situated therein. If the enterprise carries on business as aforesaid, the business profits of the enterprise may be taxed in the other State but only so much of them as are attributable to that permanent establishment.
Normally under Article 4 in other double tax treaties there is a clause of Place of Effective management and we would cite this to HMRC to get our client exempt from UK Corporation Tax
How can my client get exempt from UK corporation tax under the US and UK double tax treaty ?