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Ask Your Own Question, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 7218
Experience:  FCCA - over 40 years experience as a qualified accountant (UK based Practitioner)
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Please advice with the following: company registered in UK

This answer was rated:

Hi! please advice with the following:
company registered in UK has its branch in Netherland. For the last accounting period 100% of income relates to the branch, so the turnover for UK part iz zero. Does the company has to declare and pay UK Cortorate tax as well?
JA: Have you talked to a tax professional about this?
Customer: no yet, just would like to understand the point generally
JA: Anything else you want the Accountant to know before I connect you?
Customer: No

Hello and welcome to JustAnswer. I am here to help you. I am reviewing your question and will respond to you shortly.
Many thanks

Thank you for your question.

Please advise if the company has made an election for profits of foreign branch to be exempt from UK corporation tax.

It is a basic rule of UK corporation tax that a UK resident company is taxed on its worldwide profits wherever arising, including those of any foreign branches. Credit relief is then given against the UK corporation tax for the foreign tax paid on the profits of foreign branches.

If no election has been made then profits of your branch in the Netherlands would be chargeable to UK corporation tax and you would claim foreign tax credit relief for tax suffered in that country.

Some useful information on taxation of foreign branches of UK companies on next posting as .pdf file

My aim is to give you a professional service. I hope this is helpful and answers your question.

My aim is to give you a professional service.

Attached is some useful information on the subject.

I hope this is helpful and answers your question.

Please remember to rate myservice by selecting the 5 stars at the top of the screen before you leave JAtoday. If you need more assistance, please use the reply box below and letme know. It has been my pleasure to assist you with your question.

Customer: replied 3 days ago.
Thank you for prompt reply. The company didn't elect for exemption from UK corporate tax yet, and actually wishes to do it now. The question - is there any possibility to make it back-dated, for example for the year 2019? As the result for ended period shows that it would be right decision. Could you please give some useful links relating the rules?

Thank you for your reply.

You can't back-date election, I'm afraid.

I attached an article.. Look at section Making an election.

I hope this is helpful and answers your question. and other Tax Specialists are ready to help you
Customer: replied 3 days ago.
Thank you! I found attachment you sent.

I thank you for accepting my answer.

I'm glad I could help you resolve this today. Please follow up here if you have any other questions.

Best wishes.