4 year contract in china with my uk limited company

[DallasDad]

This

A 4 year sentence and seemingly no homework done first if he hasn't asked an expert already then Eeeek!
Might be better if OP actually shared what research he has already done

He has assumed his invoices will get paid... ok scrub that, sorry, just being a pessimist!

I can see a bright immediate future involving Visas and some Red Tape followed by enjoying the Smog in Beijing

[oliverson]

Don't be surprised if they think IR35 is Fried Chicken in Satay sauce.

[Lance]

Facts are worth what you pay for them.

I am sure an international tax lawyer, who earns £2000 per hour, will be along shortly to give their opinion for free.

agreed.

The 'pay tax where you work' gets trotted out a lot, and in general is going to be true. But it's more nuanced than that, and as other have said, China is a different kettle of fish.

I did one week in China, years ago. Didn't even think about tax as I was a perm, working for a French company, paid by a UK consultancy. I would be more circumspect these days.

[BrilloPad]

You aren't planning on using your LTD to pay travel and subsistence are you?

And commuting daily.....

[BrilloPad]

It's a general rule of Democratic nations that you pay tax where you do the work.

However non-democratic nations such as Saudi Arabia and China may have different rules. In the case of those countries I would ensure I got professional information on where to pay my tax as I don't want to end up in prison, flogged or hung for not paying correctly as they like making examples of criminal foreigners.

<pedant>I think its beheading in Saudi and Shooting in China. </pedant>

And to add to your point, China is not a democratic nation.

Personally I would have got a Chinese lawyer involved and set up a Chinese company.

I wonder what advice the OP took before signing the contract?

[northernladuk]

You aren't planning on using your LTD to pay travel and subsistence are you?

[SueEllen]

Is that a fact or an assumption?

It's a general rule of Democratic nations that you pay tax where you do the work.

However non-democratic nations such as Saudi Arabia and China may have different rules. In the case of those countries I would ensure I got professional information on where to pay my tax as I don't want to end up in prison, flogged or hung for not paying correctly as they like making examples of criminal foreigners.

[Scruff]

Take none of the above, as facts, but as supposition.

You need to take the Professional advice of an international Tax Adviser, before signing the agreement (or starting the "assignment").

[BrilloPad]

Is that a fact or an assumption?

Facts are worth what you pay for them.

I am sure an international tax lawyer, who earns £2000 per hour, will be along shortly to give their opinion for free.

[eek]

Is that a fact or an assumption?

You should be paying tax where you physically are.

[Lance]

If you are working in China you need to pay tax in China.

Is that a fact or an assumption?

[BrilloPad]

If you are working in China you need to pay tax in China.

[northernladyuk]

Hi Guys. I am the sole employee of my limited company. I'm about to start a contract in China for 4 years and I would like know how the tax works and what I will need to arrange before I leave the UK? If it helps, the services that I shall be providing is art direction and design consultancy for a theme park in Beijing. The company that I shall be working for is Universal Studios, which is an American company. My main question is where do I pay tax and how much should I expect to pay if I'm working out of the UK in China for an American company that isn't based in the USA? Thank you for your time and energy.

Others may be able to help more but I would be asking this in parallel in an expat forum and then getting professional advice. Your main tax concern is working in China, not using a UK Ltd.

[Contrac47]

Hi Guys. I am the sole employee of my limited company. I'm about to start a contract in China for 4 years and I would like know how the tax works and what I will need to arrange before I leave the UK? If it helps, the services that I shall be providing is art direction and design consultancy for a theme park in Beijing. The company that I shall be working for is Universal Studios, which is an American company. My main question is where do I pay tax and how much should I expect to pay if I'm working out of the UK in China for an American company that isn't based in the USA? Thank you for your time and energy.