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Showing posts from December, 2017

Tax Considerations for Foreigners Investing in UK Real Estate

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It is always helpful to get professional advice before proceeding with any investment.  Tax advice is especially critical as taxes can make an otherwise attractive investment unattractive.
Ways in which an adviser can help – Advising on appropriate structures to avoid or minimise UK income tax, stamp duty land tax, VAT and inheritance taxIntroducing appropriate UK advisers including legal advisers and letting management agentsEstablishing non-resident status with HM Revenue & Customs (HMRC)Arranging for income to be received grossIdentifying and maximising tax deductible expenditures and capital allowancesSubmitting rental income returns to the HMRC and advising taxation payments due






Typical structure
Taxable elements need to be held separately from non-taxable elements.   Typically, a non-UK company holds the property and another (typically, a UK company) to carry out the trading activity/development project.  There is flexibility to superimpose whatever ownership structure is des…

Tax Cuts and Jobs Act of 2017

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The Tax Cuts and Jobs Act is a United States Congressional bill to amend the Internal Revenue Code of 1986, effectively altering the rate of taxation for individuals and businesses. It is the major tax reform advocated by congressional Republicans and the Trump administration.



















Privacy in Dubai compared to Hong Kong & Singapore

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Introduction
The UAE is a constitutional federation formed on 2 December 1971 between the seven emirates of Abu Dhabi, Dubai, Sharjah, Ajman, Fujairah, Umm al-Quwain and Ras al Khaimah.  Formerly a part of the British protectorate known as the “Trucial States” or “Trucial Oman,” the emirates gained autonomy when the British withdrew from the Gulf region in 1971.  The UAE is strategically located in the Arabian Peninsula and covers an area of approximately 82,880 square kilometers. It shares borders with Saudi Arabia, lying at the southwest of the country, and Oman, situated at the north and southeast of the UAE. The country also lies between the Arabian Gulf and the Gulf of Oman. 

Arabic culture is part of everyday life in the UAE and it influences the country’s business norms. The country is largely open to foreigners and strives to create an environment that is favorable to foreign investment and economic growth, and which promotes tolerance, diversity and multiculturalism. The popula…

Substantial Compliance - Form 5471

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Please start by reading this - http://www.derrenjoseph.com/2014/03/the-scariest-us-tax-form-ever.html


In 2015, the IRS released a new International Practice Unit (IPU)providing guidance to its examiners on the penalties that apply if certain categories of U.S. shareholders fail to comply with the reporting requirements on Form 5471, Information Return of U.S. Persons With Respect to Certain Foreign Corporations. The IRS has stringent standards to determine when a Form 5471 is substantially complete and thus not subject to the $10,000 penalty (discussed below) under Sec. 6038(b).3 It is important to note that the statute of limitation remains open on the taxpayer's entire tax return if Form 5471 is not filed, and does not expire until three years after the date on which the information required to be reported is filed and properly reported. To adhere to the reporting requirements of Secs. 6038 and 6046, Form 5471 is required to be filed by certain U.S. persons who are officers, direct…

Where should you set up an Asian HQ?

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Please read this first - http://www.mooresrowland.tax/2017/12/why-should-usuk-technology.html
Surveys suggest that the top four criteria businesses use in deciding the attractiveness of a location for Regional Headquarters are economic policies, domestic market size, infrastructure and political stability.
It seems like most Asian jurisdictions compete, at least on paper, to encourage companies to set up a regional headquarters within their borders.  Which is best?  There is no one size fits all and it really depends on your business model.  Anyone who says otherwise probably is not being objective. 
Traditional wisdom was that Hong Kong is the best bet if your focus is China and especially if you run a manufacturing company.  Singapore is best if your focus is South East Asia in general.  I used “traditional” deliberately because things are changing. 
On one hand, Hong Kong is arguably still Asia’s financial center.  But as Hong Kong marches towards 2047, politically, the future r…

Why Should US/UK Technology Entrepreneurs Should Consider Expanding to SE Asia

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It sounds like a cliche now but there is an ongoing shift towards Asia in general and towards South East Asia in particular.  Here we will give 6 reasons for tech entrepreneurs in the West to consider moving East.



1.   Market Size
·Based on the World Population data prepared by United Nations Population Division, the population of ASEAN will increase from 633 million people in 2015 to 717 million in 2030 and 741 million people in 2035, a rate of 0.85% per annum.



2.  Market Demographics·More than half of the people are under 30




3. Tax Efficiency
·Depending on your situation, corporate and personal income tax can be half of what it is in the USA




4. Legal Protection


·Includes both common and civil law jurisdictions
·Singapore is probably the gold standard


         5. Education System·Great for families ·Great for sourcing skilled employees