[UK Ltd] Does "current address" make any difference tax-wise for non-resident?

[rainy]

Non UK resident.

When opening an Ltd, they or and agent require a proof of your *current* country and address in it -- utility bill or something similar. It's apart from your passport. As I understand, it may not imply that you're a tax resident in a country, but merely the current place and country where you stay. Correct?

I'm currently in Turkey and, although I'm not a tax resident here, nor do I live here permanently, I could get an utility bill. But Turkey isn't a tax friendly country and it taxes worldwide income of its residents. I've also obtain a Turkish Tax ID recently - anyone can obtain it, even tourists, and opened a bank account.

Will a turkish utility bill make any differency to my newly formed UK Ltd from the point of view of taxes? Will I get sucked into Turkish tax system if I provide a turkish utility bill to UK companies house?

 

[Sols]

When opening an Ltd, they or and agent require a proof of your *current* country and address in it -- utility bill or something similar. It's apart from your passport. As I understand, it may not imply that you're a tax resident in a country, but merely the current place and country where you stay. Correct?

It's to prove where your permanent address is, as one needs to be known by the Companies House so that they can get in touch with you by mail. You can also provide a Service Address, which would be a postal address in the UK that goes on public record, but they will still need to know your residential address.

Will a turkish utility bill make any differency to my newly formed UK Ltd from the point of view of taxes? Will I get sucked into Turkish tax system if I provide a turkish utility bill to UK companies house?

Yes, that risk exists. The company is tax resident in UK by being incorporated there, and the Turkish authorities may consider the company to also be tax resident in Turkey as well and point to your Turkish address as proof (in addition to you being in Turkey while operating the company, thereby creating a permanent establishment of the UK company in Turkey).

 

[rainy]

It's to prove where your permanent address is, as one needs to be known by the Companies House so that they can get in touch with you by mail. You can also provide a Service Address, which would be a postal address in the UK that goes on public record, but they will still need to know your residential address.

It's not a permanent address, neither a residential one. It's a current one. A utility bill can't prove one's permanent address. If I rent a flat for 1-2 months in some country, it doesn't make me a resident there, nor does it prove that I live there permanently.

Yes, that risk exists. The company is tax resident in UK by being incorporated there, and the Turkish authorities may consider the company to also be tax resident in Turkey as well and point to your Turkish address as proof (in addition to you being in Turkey while operating the company, thereby creating a permanent establishment of the UK company in Turkey).

But there's a law in Turkey that states that one becomes a tax resident only after one has stayed over 183 days per year there. I haven't and probably won't, for the next couple of years. I merely come and stay here a few months per year which is under 183 days.

 

[Sols]

It's not a permanent address, neither a residential one. It's a current one. A utility bill can't prove one's permanent address. If I rent a flat for 1-2 months in some country, it doesn't make me a resident there, nor does it prove that I live there permanently.

Permanent enough. Financial institutions, regulators, and government authorities need to make sense of what's available to them. They want to know where you live. If you don't fit into the mould the average citizen does, it's going to be a problem.

But there's a law in Turkey that states that one becomes a tax resident only after one has stayed over 183 days per year there. I haven't and probably won't, for the next couple of years. I merely come and stay here a few months per year which is under 183 days.

If you have specific legal questions, that's a discussion to be had with a relevant lawyer. I'm just saying that the risk you describe exists in general. By making it public record that a UK company owned/directed by Mr. Rainy whose address is in Turkey, you create a situation under which Turkish authorities reasonably can believe that you need to pay Turkish tax for the UK company's activities.

If you're a digital nomad without an actual residential address somewhere, you're the last of a dying kind. It's not sustainable anymore to not have a home address. You don't have to actually live there (although it can have benefits to spend at least some/majority of the time there), but you need a place to call home for tax and regulatory purposes. I don't mean need in a legal requirement sense, more in a practical sense.

 

[rainy]

By making it public record that a UK company owned/directed by Mr. Rainy whose address is in Turkey, you create a situation under which Turkish authorities reasonably can believe that you need to pay Turkish tax for the UK company's activities.

How will the turkish tax authorities find out about that UK Ltd?

By making it public record that a UK company owned/directed by Mr. Rainy whose address is in Turkey, you create a situation under which Turkish authorities reasonably can believe that you need to pay Turkish tax for the UK company's activities.

"Let's see... Is Mr. Rainy is a tax resident here in Turkey for this year? No. Move on to the next candidate".

 

[Sols]

How will the turkish tax authorities find out about that UK Ltd?

Big difference between will and can.

AEOI/CRS if the company banks in a jurisdiction that reports to Turkey (now or in the future): Exchange relationships - Organisation for Economic Co-operation and Development

Public information: Companies House service

"Let's see... Is Mr. Rainy is a tax resident here in Turkey for this year? No. Move on to the next candidate".

Sounds like you've answered your own question.

 

[rainy]

At least, I'll always be able to change my address for UK Ltd - the country.

Well, for banking I'll use my bullet-proof non CRS option - Monero. Moverover, it has no plan even to join CRS. s**t, even Bitcoin has no plan.

P.S.
Ahhhaaa-haaahaa.