ARTICLE · 09 NOVEMBER 2010

Offshore Operations - Overseas Tax

Smith & Williamson

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There are numerous issues to consider when structuring overseas activities via offshore companies.

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Operating overseas? Rajesh Sharma looks at the issues.

There are numerous issues to consider when structuring overseas activities via offshore companies. The overriding reason for establishing an overseas entity should be driven by commercial reasons rather than tax mitigation. There are also legal, regulatory and language issues to consider of course.

However, members of UK partnerships and LLPs will suffer rates of tax of up to 52% (including national insurance contributions) on their share of profits from April 2011. As a result, such firms might consider taking advantage of lower taxed regimes in other jurisdictions if substantial work is done outside the UK.

What's the strategy?

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