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Posted Fri, 13 Oct 2023 10:26:37 GMT by Binod Mandal
Hi, I hold an Indefinite-Leave to Remain status in the UK, working for an UK employer. I'm a remote worker for my company in the UK. I need to go to India to for 10 to 12 weeks for my father's medical treatment. I'm planning to work remotely from India and also taking some time offs in between. Just wanted to check if there is any restriction (in terms of max. no. of days without impacting the tax status) of working remotely from India for an UK employer? What are the tax implications etc. Thanks in advance for your input.
Posted Tue, 17 Oct 2023 14:40:46 GMT by HMRC Admin 17 Response

Hi,
 
There are no UK restrictions on you working overseas during this period. 

You will still be tax resident in the UK for the whole tax year. 

You will need to consider whether you will have an Indian tax liability, for working there during this period.

Thank you.
Posted Sat, 20 Jul 2024 06:49:02 GMT by Shradha
Hi I am in a similar situation and wanted to understand if there will be any corporate tax liability for my Company. My Company had a presence in India.
Posted Wed, 31 Jul 2024 17:24:07 GMT by HMRC Admin 20 Response
Hi,
A UK company with an overseas office is liable to UK corporation tax on its worldwide profits, this includes profits from its overseas operations.
However, there are specific rules and provisions to consider, which include, among others:
Residence Test:
A company is considered UK-resident and thus liable for UK corporation tax if it is incorporated in the UK or if its central management and control are exercised in the UK.
Double Taxation Relief
To avoid being taxed twice on the same income, the UK has double taxation agreements (DTAs) with many countries. These agreements generally allow UK companies to claim relief for foreign taxes paid on overseas profits.
Permanent Establishment: The concept of a “permanent establishment” (PE) is crucial in determining where a company’s profits are taxed.
If the overseas office constitutes a PE under the DTA between the UK and the host country, then the profits attributable to that PE may be taxed in the host country. 
Thank you.



 

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