I am a UK citizen,
i am wanting to open a business in UAE it will be formed by a firm over there that I spoke to when I was out there. They said it would help my company grow by doing this. However I want to check to make sure it is legal.
they said they would setup the company.
My confidentiality is important to them so they setup company with a nominee director and share holder and I am given sole access to the company bank account in Dubai.
My company will take payments from the UK online but also many other countries.
what taxes would I have to pay in this situation? When speaking to people in Dubai they said 0% corporation tax basically 0% everything.
im not too sure... I'm hoping to go see an accountant next week but I've made a few calls locally and a few don't really have much knowledge of these situations.
Would I only pay tax on money I send myself as income?
Any advice would be great
thanks
Replies (9)
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Dear James, this is not everyone's cup of tea that is why may be your local accountant won't be able to assist you.
What you are thinking of forming or have been advised to incorporate is off shore structure which hmrc really doesn't like. I won't be comfortable forming off shore structure with nominated director or shareholder as hmrc is clamping down such structures. You are going to manage your online business from uk. The management/ decision making is based in uk and hence the company will be deemed to be registered in uk for corporation tax purposes. I have dealt with similar situations before. The company will be liable to pay uk corporation tax at normal rate.
James with due respect I have seen this posting on another forum. You are managing the company from the UK so don't try to convince yourself otherwise, This is a complex area so suggest you speak to an accountant who has knowledge of international taxation !
Regardless of who is the stated director, you would be managing the company, and since you are UK resident, that would make the company UK resident for corporation tax purposes.
It's fine James. Just go and do it. Nothing can possibly go wrong can it? As you say, it's all online, after all.
Now that we've cleared that one up, you probably have time to type "Dimsey Allen" into Google.
James,
What you are asking (advise), there is no simple answer to it. If you wish to avoid being tax resident in UK then you will need fall under the following: (This is taken from gov.co.uk (for more information visit https://www.gov.uk/tax-foreign-income/residence)
You’re automatically non-resident if either:
you spent fewer than 16 days in the UK (or 46 days if you haven’t been classed as UK resident for the 3 previous tax years)
you work abroad full-time (averaging at least 35 hours a week) and spent fewer than 91 days in the UK, of which no more than 30 were spent working