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Ask Your Own Question, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5113
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
Type Your Tax Question Here... is online now

i am a british citizen. I pay my taxes. Iintend to start a

Customer Question

i am a british citizen. I pay my taxes. Iintend to start a property developing company abroad in Zimbabwe. The tax rate is high about 40% altogether. Would you advise i keep my profits offshore to avoid paying tax twice and virtually having no profit left. Offshore in Zimbabwe or offshore elsewhere. thankyou. Do ihave to declare my earnings on self assessment in uk from a company Zimbabwe?

Submitted: 4 years ago.
Category: Tax
Expert: replied 4 years ago.
Hello and welcome to the site. Thank you for your question.

Please clarify for me...

Will the intended business in Zimbabwe be run as a LTD company registered in Zimbabwe?

Will you draw any salary from the company?
Are you likely to declare any dividends as distribution of profits?

Many thanks
Customer: replied 4 years ago.

It will be run as a limited company. I do not plan to draw a salary but take and save my profits? as bonuses/dividends although i am not clear as to how this works.

i hope this helps

Expert: replied 4 years ago.
Tilly, thank you for your reply and some clarification.

You will only be liable to income tax on dividends and bonuses you award yourself.

Any profits made by the company in Zimbabwe would attract corporation/company tax in that country. These profits will not be liable to UK Corporation Tax.

You should aim to take dividends only out of taxed profits. These would be reported in your self assessment tax return as foreign income on supplementary pages SA106 - Foreign.

Bonus is deemed earnings where as dividends are investment income.

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

Customer: replied 4 years ago.

thankyou so much. You've clarified it perfectly for me.

Expert: replied 4 years ago.
Tilly thank you for your reply.

I hope this is helpful and answers your question and that there are no more issues.

If you are happy and there are no more issues I will appreciate if you would kindly rate the service I provided to ensure I get paid for it.