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UK business in Italy
Emiliano-uk
Messages count : 2
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13 July 2010
Hi everyone,
I'm an Italian UK resident since 2005. My brother is an entrepreneur, he's got a small construction company with 12 regular labourers down in Italy. Since the fiscal regime there is getting unbearable (from next year he's meant to pay almost 50% of tax on his income) he proposed me to set up a business here in the UK which is meant to operate abroad, in Italy indeed.
In this plan I should be the owner of the company who pays taxes to the UK government instead of the Italian one. I've already asked and we wouldn't pay any VAT, neither to UK nor Italy because of Intrastat arrangements.
I'd like to know your opinion about this, would it be feasable or not? I guess that the only one who loses is the Italian government, since my brother saves money, I earn a commission, and the UK goverment would receive a couple of extra hundred thousands pounds of income tax every year. :)
Cheers
I'm an Italian UK resident since 2005. My brother is an entrepreneur, he's got a small construction company with 12 regular labourers down in Italy. Since the fiscal regime there is getting unbearable (from next year he's meant to pay almost 50% of tax on his income) he proposed me to set up a business here in the UK which is meant to operate abroad, in Italy indeed.
In this plan I should be the owner of the company who pays taxes to the UK government instead of the Italian one. I've already asked and we wouldn't pay any VAT, neither to UK nor Italy because of Intrastat arrangements.
I'd like to know your opinion about this, would it be feasable or not? I guess that the only one who loses is the Italian government, since my brother saves money, I earn a commission, and the UK goverment would receive a couple of extra hundred thousands pounds of income tax every year. :)
Cheers
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Emiliano-uk
Messages count : 2Likes count : 0Registration : 13 July 2010
Is there any particular reason why a UK company who operates abroad has to subject its profits to the foreign country? I'm not saying it's not true, I'd just like to understand how this works and why. Can please you give me any links or any contact to specialist advisors please? Many thanksAlex21, post: 14046 a écrit : even if you setup a limited company in the UK and start operating in italy, you only have 183 days before your company will then have to start subjecting profits italian corporation tax + as an employee of your Ltd Co you would have to pay italian tax (this is all backdated too, so when you land on the 184th day you effectively need to pay tax from day 1 of operating in italy). i would go to a specialist advisor on this one. Setting up a UK company will not get around paying italian tax.
Emiliano