Uk resident + Cyprus Company DTA

Nanoo

Building Trust
Entrepreneur
My question is, if i incorporate a Cyprus company as a UK resident i could use the DTA to pay only 12.5% of coporation tax in Cypris and prove to HMRC that i paid the tax in Cyprus to avoid paying them in UK as well?

Here's a example tell me if it's correct and legal.

1. UK resident.
Company in Cyprus.
100k$ profit in 2019 (kept in the cyprus corporate bank account).
12.5% to pay in Cyprus
0% to pay in UK

I think this thread will help multiple people to figure out the best use of the DTA for for uk resident.
 

Nanoo

Building Trust
Entrepreneur
Here's more details for example 1.
Company registered using nominee director + shareholder.
I will manage the company from UK but it's a dropshipping business, no offices, wharehouse and no income come from UK.
I will use only a laptop + Cyprus vps to manage the online business.
 

happyjohn

Corporate Services
Business Angel
Entrepreneur
My question is, if i incorporate a Cyprus company as a UK resident i could use the DTA to pay only 12.5% of coporation tax in Cypris and prove to HMRC that i paid the tax in Cyprus to avoid paying them in UK as well?

Here's a example tell me if it's correct and legal.

1. UK resident.
Company in Cyprus.
100k$ profit in 2019 (kept in the cyprus corporate bank account).
12.5% to pay in Cyprus
0% to pay in UK

I think this thread will help multiple people to figure out the best use of the DTA for for uk resident.
yes that's how this works. It's not difficult as long as you have audited accounts and tax reports available for the company then it's possible.
 

Juoffshore

Building Trust
Entrepreneur
Here's more details for example 1.
Company registered using nominee director + shareholder.
I will manage the company from UK but it's a dropshipping business, no offices, wharehouse and no income come from UK.
I will use only a laptop + Cyprus vps to manage the online business.

A company will be UK tax resident if it is incorporated in the UK. Additionally, for those companies not incorporated in the UK, they will be considered UK tax resident if they are centrally managed and controlled in the UK. Central management and control means the highest level of decision making and not, for example, operational control, although clearly these can go hand in hand.

So in this case if you get caught, HMRC, can challenge that your Cyrpus company could be taxed as a UK one!
 

Admin

Forum Moderator
Staff member
So in this case if you get caught, HMRC, can challenge that your Cyrpus company could be taxed as a UK one!
Just want to added, this is exactly as any other tcountry and ax office in Europe.

You need a very good and strong setup in Cyprus to avoid anyone questioning your operation.
 

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