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Posted Thu, 26 Oct 2023 18:23:14 GMT by Silvia Mariana Lungu
Hi, hope you’ll be able to help me with the following question. I am a director at my own Ltd and I was send by my main contractor (a UK company) to work in Trinidad, USA. My LTD will be paid from the UK company, hence no foreign income. My question is, if I spend more than 183 days away from UK will I still be considered as UK resident? Do I have to pay tax overseas even though I’m paid from a UK company? Many thanks for your help.
Posted Wed, 01 Nov 2023 07:22:03 GMT by HMRC Admin 25 Response
Hi Silvia Mariana Lungu,
You will need to check this from a USA perspective and also take the UK statutory residence tests your you as an individual.
Gudance can be found here:
RDR3 Statutory Residence Test
Tax on foreign income
The UK Ltd company will continue to be taxable in the UK.
Thank you. 
 
Posted Wed, 01 Nov 2023 21:05:15 GMT by Silvia Mariana Lungu
Thank you for your help. Thank you for getting back to me, Lewis Finnegan and HMRC Admin 25. First and foremost, I would like to express my gratitude for your prompt response to my query. However, I fear that my request may not have been as clear as it could have been, and for that, I apologize. To provide further context on my situation, my company, Z Ltd, has been subcontracted by UK-based firm, X Ltd, to provide services to a Trinidad-based company. I have been dispatched to Trinidad to execute this work, with X Ltd making payments to my company in GBP currency, and my company subsequently paying me, the director, a salary into my UK bank account. I would be most grateful if you could kindly advise me on whether or not my company would be required to pay tax to the UK government if I work in Trinidad for more than 183 days. Thank you for your assistance in this matter.
Posted Tue, 07 Nov 2023 08:59:05 GMT by HMRC Admin 8 Response
Hi,
Depending on the nature of the services being provided by your company (Company Z) and the length of the contract in Trinidad, it may have a ‘permanent establishment’ (PE) there in accordance with Article 5 of the UK/Trinidad and Tobago Double Taxation Convention (DTC).
If that is the case the profits attributable to the PE would be taxable in Trinidad.
The UK/Trinidad and Tobago DTC can be found at:
UK/TRINIDAD AND TOBAGO DOUBLE TAXATION CONVENTION SIGNED 31 DECEMBER 1982 
If a PE does exist then please see:
IINTM281010 - Foreign Permanent Establishments of UK Companies: introduction: overview  for further information on how this affects the UK tax position.
However, it is also possible that the salary you receive from Company Z may be taxable in Trinidad if you are present in Trinidad for more than 183 days in the fiscal year concerned and Company Z does not have a PE in Trinidad.
This is covered in Article 15 of the UK/Trinidad and Tobago DTC.
Thank you.

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