I am a UK tax resident who is a 1/3 shareholder in a Hong Kong company that has a wholly owned UK subsidiary. This is (probably) a very obvious question, but after paying the corporation tax on our UK profits, would any dividends to the parent company be taxed as well, or would they be exempt?
On a related note, I was also wondering if we needed to actually have a UK subsidiary at all or whether we could book revenue from UK clients directly to the HK parent? I am assuming not, as I am based in the UK and carrying out some of the work and we anticipate going over the VAT threshold in a couple months, though at the moment, around 70% of our revenue is derived from clients in HK and SE Asia.
Your insights would be much appreciated!