Remittance restrictions

This topic has 3 replies, 2 voices, and was last updated 6 years ago by John Moffat.

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October 25, 2019 at 6:15 pm #550822
Saimon
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A project after us tax $ cash flow is as follow ($m)
Yr 0 – (10)
Yr 1 – 3
Yr 2- 4
Yr 3 -6

Only 50% can be remitted each year to uk and remaining portion at end of the project

Uk tax 30%
Us tax 20%

What will be the additional tax in uk if no remittance restrictions and if there are remittance restrictions as detailed above??

Sir i m only confused about tax portion relating to remittance of cash
October 26, 2019 at 9:40 am #550851
John Moffat
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It depends whether tax in the UK is calculated on the foreign profits or just on the remittances. Most likely it will be on the profits in which case there will be an extra 10% charged on the profits each year (regardless of when remitted).
October 26, 2019 at 12:14 pm #550886
Saimon
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What if uk tax is charged on remittance?? Then how tax will be calculated
October 26, 2019 at 1:44 pm #550888
John Moffat
Keymaster
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The question will say what the rule is (as to whether overseas tax paid is taken into account or not).
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