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Posted Fri, 25 Aug 2023 11:12:28 GMT by Guido
I have an LTD incorporated in the UK and I intend to manage it from Italy (as an Italian resident). If my LTD provides services both to the UK and to Italian clients, will the tax be due to both countries (to the UK whenever services are provided there and to Italy whenever in Italy), right? Services might also be provided remotely in each case. Consider that at the moment I am the sole director, secretary, PSC and shareholder, and that the company is dormant. But in the future it may start trading and I could appoint other directors or secretaires and some of them might be UK-resident. Would that be relevant towards which country taxes are due? Also, in Italy I will not have any fixed place of business (e.g. an office, unless I decide to provide my services also remotely) but rather I will travel to the clients. I have read the international manual ( https://www.gov.uk/hmrc-internal-manuals/international-manual/intm120200 ) but I could not apply it to my particular circumstances.
Posted Tue, 29 Aug 2023 15:59:25 GMT by HMRC Admin 10 Response
Hi
I refer you to the UK/Italy Double Taxation Treaty (DTT) available at:
UK/ITALY DOUBLE TAXATION CONVENTION

A company is resident in the UK due to its incorporation here or where the central management and control of its business is in the UK.  
If the Italian Tax Authority also consider the company to be resident in the Italy, then the tiebreaker in the DTT between the UK and Italy would need to be considered.
It is unclear from your question whether the you as the sole director intend to be resident in the UK or Italy which is a factor you will need to determine as that will be a consideration in establishing central management and control.  
If the facts and the DTT confirm the company is resident in Italy, the subsequent appointment of directors outside of Italy (or any other changes) could mean that its residency status also changes.
Corporate residency is covered in the link you refer to but there is a much wider guidance starting at :
Company residence

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