Taxation

[Deep and fast]

Hi guys, any idea about the best tax residency if working for a uk company with property in uk, France and Russia.
Best to stick to uk tax and consider the others as holiday? or benefits of the other two.
I know I should consult a tax specialist but wondered if anyone here has been in the same situation.

Cheers

[minigundiplomat]

Be very careful with France....

The fifth republic has become almost Stalinist since M. Hollande arrived and taxes are very much on his radar. If you are deemed a resident, your global income is up for grabs. Bear in mind that even under the dual taxation treaty, any net UK income that HMRC have finished with will be taxed by the French.

It is very easy to be seen as a resident; you may be out of France 365 days a year, but if your family are there.......

[flyboy1818]

In regards to the UK read this document very carefully:

https://www.gov.uk/government/publications/rdr3-statutory-residence-test-srt

You may well remain a tax resident in the UK even after leaving for Russia/France (if your a UK tax resident at the moment). I agree with the above post, stay well away from France!

As for Russia, think about this:

Tax rate

"Normally tax rate is 13 %, it is for resident. To be considered a Russian resident, residence must be established of at least 183 days in Russia during any calendar tax year. Non-residents are liable to tax a flat rate of 30 %, generally withheld at source. No deduction or allowances are available for non-resident."

So if you can prove that your really a resident of Russia, then your tax rate is very low (13%)! if not then its pretty standard by European terms!

These days if you reside in a country for tax purposes then you really have to prove it and countries such as the UK are increasingly focused on your centre of life. If your wife and children remain in the UK/France and you leave for Russia due to tax purposes, then expect to be investigated! Working for a UK company on a UK contract could make that difficult! HMRC have made successful claims against Pilots in the past!

If it looks too good to be true, then it probably is!

Do you really want to live in Russia? I guess St Petersburg would be ok :-)