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Cyprus company + UK company = No UK corporate tax??

Discussion in 'Cyprus Company formation' started by TwoFaces, Sep 13, 2012.

  1. TwoFaces

    TwoFaces Offshore Agent

    I might have got the wrong end of the stick, but would appreciate clarification from admin and CCLogic forum users.


    (1) Cyprus company (with cyprus bank account) with foreign nominee director and shareholder. This company does not run any business within Cyprus. My understanding is that his company is then considered 'non-resident' and therefore not expected to pay any corporation tax.


    My question is:


    We are a consulting firm based in the UK and our clients are all UK based. We operate in the UK under a limited company. Our plan is to use a Cyprus company to own this UK limited company. We continue to operate in the UK. Does that mean profits generated through this UK limited company is free of tax since it's own by a Cyprus company? :help:
     
  2. Admin

    Admin Forum Moderator The Forum Cleaner

    Indeed your correct.

    Unfortunately not. At least not how I know the tax system works in most European countries. If the business is conducted and executed in the UK it has to be taxed there otherwise it would require a very sophisticated setup for which I don't have the capacity to make any suggestions. A local tax adviser would be the right person to ask.
     
    Last edited: May 29, 2016
  3. Sany zeth

    Sany zeth Active Member

    it will be better to contact company lawyers who deal with such cases. They can make you understand better
     
  4. cansei

    cansei New Member

    And if you run your business with an non-resident UK LP owned by a non-resident Cyprus corp, do you have to pay corp taxes anywhere?
     
  5. auric

    auric Offshore Agent Mentor Group Business Angel

    No you don't. As long as the company is registered non resident you don't have to pay tax.
     
  6. cansei

    cansei New Member

    And in your home country? o_O
     
  7. auric

    auric Offshore Agent Mentor Group Business Angel

    we only speak corporate tax here. You will always have to pay tax in your home country unless you don't live there more than 183 days.
     
  8. cansei

    cansei New Member

    So if I move into a country with 0 dividend taxes or personal income taxes... it can't be so easy ca#"!
     
  9. auric

    auric Offshore Agent Mentor Group Business Angel

    that's a different story, as you say if a country has no income tax you don't pay tax :D