HK ltd company, uk rental income - tax?

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  1. #1

    HK ltd company, uk rental income - tax?

    Can anyone help me with the following questions:
    - if my HK Ltd company owns a property in the UK and has completed the "non resident landlord" form in order to receive rental income gross of tax, and assuming the ltd co has zero presence in the UK (no office, staff), will it have to pay any UK corporation tax?
    - also, will the hk ltd co have to pay any corporation tax in HK? My guess/hope is "no" since this profit is "not earned in HK"
    - finally, if I as a HK resident fund the HK ltd company can I tax cash out of that hk company "tax free" assuming it is structured as dividend/loan interest?

    Thanks for any thoughts/answers.


  2. #2

    Join Date
    Mar 2007
    Posts
    13,154
    Quote Originally Posted by bernardHK:
    Can anyone help me with the following questions:
    - if my HK Ltd company owns a property in the UK and has completed the "non resident landlord" form in order to receive rental income gross of tax, and assuming the ltd co has zero presence in the UK (no office, staff), will it have to pay any UK corporation tax?
    I dont know the name of the tax, but the answer is yes, it will have to pay some kind of tax in the UK.
    - also, will the hk ltd co have to pay any corporation tax in HK? My guess/hope is "no" since this profit is "not earned in HK"
    No
    - finally, if I as a HK resident fund the HK ltd company can I tax cash out of that hk company "tax free" assuming it is structured as dividend/loan interest?
    Yes

  3. #3

    Join Date
    Aug 2013
    Location
    The World
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    Quote Originally Posted by bernardHK:
    Can anyone help me with the following questions:
    - if my HK Ltd company owns a property in the UK and has completed the "non resident landlord" form in order to receive rental income gross of tax, and assuming the ltd co has zero presence in the UK (no office, staff), will it have to pay any UK corporation tax?
    - also, will the hk ltd co have to pay any corporation tax in HK? My guess/hope is "no" since this profit is "not earned in HK"
    - finally, if I as a HK resident fund the HK ltd company can I tax cash out of that hk company "tax free" assuming it is structured as dividend/loan interest?

    Thanks for any thoughts/answers.
    Just make a shareholder's loan

  4. #4

    Join Date
    Nov 2007
    Location
    Wanchai
    Posts
    4,547
    Quote Originally Posted by HowardCoombs:
    I dont know the name of the tax, but the answer is yes, it will have to pay some kind of tax in the UK.
    No
    Yes
    It's just income tax is it not? Even with the NRL scheme the rent is still taxable but you can offset it against any allowances you may have.