Taxation on an offshore company

Company is formed, registered and based in UAE the business is entirely online

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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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Lanop Accountants
By Lanop
25th Apr 2017 21:26

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.

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By Jamesb1975
25th Apr 2017 22:06

If the company is registered in Dubai with Dubai residency and Dubai considers the company to pay their tax rates wouldn't the U.K. Be unable to tax based on double taxation laws?

Thanks

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By Jamesb1975
25th Apr 2017 22:11

Also as part of the rules in Dubai I have to travel to Dubai every 6-12 months to conduct this business. So any management would actually happen in dubai not the Uk

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By Jim100
26th Apr 2017 10:43

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 !

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By Jamesb1975
26th Apr 2017 17:59

It's no secret that it's on another forum? Just trying to get opinions.

However, how have you come to the conclusion that management would be from the UK?

It's entirely online based and most of it would be passive income which actually doesn't need much "management"

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Replying to Jamesb1975:
By SteveHa
28th Apr 2017 11:39

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.

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By Dick Stastey
26th Apr 2017 18:13

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.

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By Jamesb1975
26th Apr 2017 21:18

I don't see why people seem to be replying in the manner you are.

I only asked a simple question based on advise I given overseas. I am currently not even trading at all.

I was doing the right thing to check to see if it was correct!

Surely there must be a point where I would no longer pay UK taxes.

How often would I have to live in UAE for me to be considered not taxable in UK?

I Have been told in UAE I am a UAE resident and I would pay tax there.
I have been told the UK government can't tax me on the money due to double taxation laws and they have already taxed me.

Taxation laws are very unclear and not readily available hence asking the questions

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Replying to Jamesb1975:
Lanop Accountants
By Lanop
28th Apr 2017 11:27

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

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