Which country is best to form a company with a low tax on salaries where Directors can be non-residents?

[sherwoodcap]

I'm not entirely sure I worded the headline correctly. I barely understand what I've written myself but it's late.

Anyways,

As an example. I can form a company in Hong Kong and pay 0% tax on salaries if that income is paid into a foreign bank account and I'm not a resident of HK.

Hong Kong is no-go unfortunately for other reasons but I'm looking for something similar.

I definitely won't be living in the country and the requirement is all money will be paid as a salary, not dividends.

Does anyone know of any other countries that have low taxes on personal income for non-residents? And is it possible to form a company there without living in the company.

 

[fshore]

Estonia, the UK can both easily achieve that. Note Estonia will tax directors salaries, but not a regular salary (for work performed for the company). The UK is even easier. No need to register for NI if you are (and have been) non resident in the UK.
Btw, HK taxes directors salaries, but not below a threshold, I think it's 150K HKD.

 

[AndyAresa]

Estonia, the UK can both easily achieve that. Note Estonia will tax directors salaries, but not a regular salary (for work performed for the company). The UK is even easier. No need to register for NI if you are (and have been) non resident in the UK.
Btw, HK taxes directors salaries, but not below a threshold, I think it's 150K HKD.

Hello, would the UK setup work if the same non-resident individual is both the director and sole shareholder? Would the UK tax authorities or accountants consider such salary payment as disguised dividends and deny deductibility of such salaries from company profits? I mean having a micro company with 80k GBP annual revenues and then taking 95% of that as the director's salary.

 

[jakubko666]

If you are not US resident the aswer is US llc.
But it is coming harder and harder do get bank account for us llc owned by non-resident.

 

[fshore]

Hello, would the UK setup work if the same non-resident individual is both the director and sole shareholder? Would the UK tax authorities or accountants consider such salary payment as disguised dividends and deny deductibility of such salaries from company profits? I mean having a micro company with 80k GBP annual revenues and then taking 95% of that as the director's salary.

The company can deduct expenses like the salary if those are reasonable and justified (I forgot the exact wording). Meaning you couldn't take everything out in salary if you don't actually spend time working for the company, however maybe that would work in practice anyway, not sure how much trouble they would make about that.

You could also take a fixed (reasonable) salary independent of the company income, if you do spend time working for the company. Pay it by loaning the amount to the company. This might give the company a loss that you can bring forward for future years when you start bringing in more revenue.

 

[AndyAresa]

The company can deduct expenses like the salary if those are reasonable and justified (I forgot the exact wording). Meaning you couldn't take everything out in salary if you don't actually spend time working for the company, however maybe that would work in practice anyway, not sure how much trouble they would make about that.

You could also take a fixed (reasonable) salary independent of the company income, if you do spend time working for the company. Pay it by loaning the amount to the company. This might give the company a loss that you can bring forward for future years when you start bringing in more revenue.

Hi fshore, thanks for your explanation. Do you have any recommendations for UK accountants to discuss these issues in more detail? Specifically UK company owned and run by a non-UK individuals, with employees and/or individual contractors based outside the UK.

Another matter - if an EU citizen were to receive salary for her duties as a director of a UK company, performed fully outside the UK, will she need to obtain some work permit or visa for the UK, following Brexit?

 

[fshore]

Hi fshore, thanks for your explanation. Do you have any recommendations for UK accountants to discuss these issues in more detail? Specifically UK company owned and run by a non-UK individuals, with employees and/or individual contractors based outside the UK.

Another matter - if an EU citizen were to receive salary for her duties as a director of a UK company, performed fully outside the UK, will she need to obtain some work permit or visa for the UK, following Brexit?

A director doesn't need a UK work permit to perform services outside the UK.

 

[JimBeam]

Dubai would work I guess