Opening UK LTD makes me liable for tax in UK ?

[SantaM]

Hi.

I'm now living in Senegal, and an advertisement company I'm working with is asking me to verify my account using business documents in the next 7 days maximum. The fastest way of incorporating is by opening a UK LTD. I will use it for verification, and to open account with 1 or 2 EMI. Would this make me liable for taxation in the UK event though I'm in Africa, and nothing physical in the UK ? (I might have some clients from UK though)

 

[fshore]

You will not be liable for tax in the UK. But the UK company will of course be liable for tax in the UK (and maybe also in Senegal).

 

[SantaM]

That's even more confusing What would the uk expect me to pay for them ? I got many small biz, one for example on affiliate marketing. I will start receiving earnings on an EMI opened using the UK LTD. Should I start paying UK tax on this earning ? What is their explanation for this ? I'm not benefitting from any infrastructure on the UK nor do I have physical presence there

 

[Tax Cow]

Refer to DTA between UK and Senegal: Senegal: tax treaties

You will have some reporting and tax obligations there because the income has UK origin. Non-residents do have to pay tax on UK source income. OECD is a cancer.

Luckily for you, since there is DTA, if you structure properly and avoid a PE, your tax liability towards UK will not be more than 5%. Senegal will be the next in line to tax that same income.

 

[SantaM]

Thanks for the reply ! Luckily, I won't have to pay any corp tax on my home country on the remaining since it's 0% for the first 5 years for this type of activity. For the 5% are you referring to this ?

 

[fshore]

Refer to DTA between UK and Senegal: Senegal: tax treaties

You will have some reporting and tax obligations there because the income has UK origin. Non-residents do have to pay tax on UK source income. OECD is a cancer.

Luckily for you, since there is DTA, if you structure properly and avoid a PE, your tax liability towards UK will not be more than 5%. Senegal will be the next in line to tax that same income.

To use the dta he would have to get Senegal to issue a tax resident declaration for the UK company
Here from the dta:
Where by reason of the provisions of paragraph 1 a person other than an
individual is a resident of both Contracting States, then the competent authorities of
the Contracting States shall endeavour to determine by mutual agreement the
Contracting State of which that person shall be deemed to be a resident for the
purposes of this Convention. In the absence of a mutual agreement by the competent
authorities of the Contracting States, the person shall not be considered a resident of
either Contracting State for the purposes of claiming any benefits provided by the
Convention, except those provided by paragraph 3 of Article 21 and Articles 23 and

 

[fshore]

You could also simply take a salary from the UK company The salary would not be taxable in the UK but might be taxable in Senegal

 

[SantaM]

Open a uk limited with nomines shareholder/director and a transferwise boderless account.

You get an DE IBAN, a UK sort-code and a US current account.

Then open a Monese account, get a EUR card and wire money from TransferWise to Monese so you can spend it.

Close the limited after 17 months.

Rinse, repeat.

I read this in another thread. Do you think it's a viable solution to use those EMI and Payment gateway without having to become taxable on the UK ?

 

[Crest]

You could open a UK partnership with 99% / 1% friend who is also non UK resident, but the agreement that all 100% profits go to you. As the partnership pays no tax as the income in non UK sourced, and you are a non resident you would also not pay any tax, making it 0% tax liable.