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

[TwoFaces]

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:

 

[JohnLocke]

(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.

Indeed your correct.

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:

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.

 

[Sany zeth]

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

 

[negon]

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

 

[negon]

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.

 

[negon]

So if I move into a country with 0 dividend taxes or personal income taxes... it can't be so easy

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