Good morning,
Hoping for some advice. I am operating a UK Ltd Company, one project we have is in Oman, which the UK has a DTA with. Due to our physical presence in Oman (over 90 days) we are liable to pay some corporation tax there, albeit at a much lower rate than in the UK. The Oman contract makes up 90% of our income over the last year, so is significant for us.
My questions are;
1. From discussion with our accountants in Oman, due to the DTA between Oman and UK, once we have declared our return in Oman (for income derived there, less any reasonable expenses) that concludes our tax liability for that income and would therefore not pay any tax on that income in the UK. Is this correct or would we still expect to pay UK corporation tax on the remainder of the profits (since the rate in Oman is much lower).
2, Subject to item 1, we pay dividends out in the UK, these are given a 10% tax credit which, as per our understanding, arises from the fact that the company has already paid the tax due - however our concern now is that if no (or very little) UK corp tax is due - will this 10% credit still apply?
3. Are there any experts on the operation of DTA's out there who could assist in ensuring we comply with both Country's regulations, my current accountants in the UK are not as experienced in these matters? (if so pls drop me a line)
Many thanks in advance for your help
Hoping for some advice. I am operating a UK Ltd Company, one project we have is in Oman, which the UK has a DTA with. Due to our physical presence in Oman (over 90 days) we are liable to pay some corporation tax there, albeit at a much lower rate than in the UK. The Oman contract makes up 90% of our income over the last year, so is significant for us.
My questions are;
1. From discussion with our accountants in Oman, due to the DTA between Oman and UK, once we have declared our return in Oman (for income derived there, less any reasonable expenses) that concludes our tax liability for that income and would therefore not pay any tax on that income in the UK. Is this correct or would we still expect to pay UK corporation tax on the remainder of the profits (since the rate in Oman is much lower).
2, Subject to item 1, we pay dividends out in the UK, these are given a 10% tax credit which, as per our understanding, arises from the fact that the company has already paid the tax due - however our concern now is that if no (or very little) UK corp tax is due - will this 10% credit still apply?
3. Are there any experts on the operation of DTA's out there who could assist in ensuring we comply with both Country's regulations, my current accountants in the UK are not as experienced in these matters? (if so pls drop me a line)
Many thanks in advance for your help
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