Thanks again for that and I have decided to accept and will be sending the next 3 months in Lisbon and Coimbra
I will let you know how the witholding tax progresses as I'm sure other contractors will come across this
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
Reply to: Contracting with portugese companies
Collapse
You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:
- You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
- You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
- If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.
Logging in...
Previously on "Contracting with portugese companies"
Collapse
-
Originally posted by gravesendboyChees for that
I am due to be based in Lisbon and Coimbra
I'm still trying to weigh up the benefits of this and although the money is good ,I'm not really comfortable with the idea of 15% of my companys money being held back
Bill 100k
Cash paid 100k
Expenses 20k
Profit 80k
CT 15.2k
Or with withholding
Bill 100k
Cash paid 85k
Expenses 20k
Profit 80k
CT 15.2k
Less portuguese tax paid 15k
CT To pay 200
The question is whether if you get in a position where the withholding tax is > than the UK CT you can reclaim the excess (this would occur if your expenses were > about 21% of turnover). I never got into this position since work in Portugal was a fairly small part of turnover.
In any event, if you get the fiscal form from the clients and get your revenue office to stamp it they will not do the whole withholding thing anyway.
Edit: the form is "Claim for the Application of the Convention for the avoidance of double taxation - Mod 12 RFI". If you want to look at one try here:
http://www.dgci.min-financas.pt/pt/s...x_conventions/Last edited by ASB; 30 April 2007, 09:23.
Leave a comment:
-
Chees for that
I am due to be based in Lisbon and Coimbra
I'm still trying to weigh up the benefits of this and although the money is good ,I'm not really comfortable with the idea of 15% of my companys money being held back
Leave a comment:
-
Originally posted by gravesendboyI have been offered a contract with a portugese company but to get paid without deductions apparently I have to fill something in 12 rfi
Has anyone here dealt with something like this
I would appreciate it if someone could point me in the right direction on where to get the form
Thanks
In this case:-
1) Your Portuguese clients fill out an estimate of the amounts your co will bill then in the fiscal year. This is then signed by them and sent to the Portuguese tax office. This is the form to which you refer.
2) You do nothing. In this case 15% will be deducted by the company as a withholding tax. You can offset this against UK Corporation Tax. [You should get a receipt from the Portuguese tax office to enable this to happen. I lost the will to live trying this]
Alternatively:-
Send your copies of the form to your UK tax office. With a letter saying "please tell these people we are a UK resident company and pay tax on our worldwide profits". Your taxman will then (should) write back certifying this and also stamping the form officially. You can return this to the client. They can now pay the invoices without deductions.
you going to be in Lisbon?
Leave a comment:
-
Contracting with portugese companies
I have been offered a contract with a portugese company but to get paid without deductions apparently I have to fill something in 12 rfi
Has anyone here dealt with something like this
I would appreciate it if someone could point me in the right direction on where to get the form
ThanksTags: None
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Leave a comment: