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UK - Russia Double Taxation Question
I am a UK citizen resident in UK and also a sole director of a Service Limited company registered in UK.
I now have an offer for working in Russia on a long term contract for which the agency proposes me to apply for a Highly Skilled Migrant Visa which will allow me to work continuously in Russia (without the 90 days out of 180 days restrictions on normal Business Visa).
Even though the agency entices me with 13% low taxation in Russia, I am bit concerned on my company status in UK also as I am the main source of income for my company and my family. I am bit confused on how the double taxation works?
I am considering options,
A - to make my UK company as dormant and enter Russia as HS Migrant until the Russian contract ends, there by paying tax only in Russia (or is there some to pay in UK also?)
B - go via a umbrella company in Russia; work and pay tax on amount required to be disclosed to Russia for HSM Visa obtained via the umbrella company and pay the rest as contract agreement to my company so that it can also continue to exist in UK.
In option B, how does my other incomes like Dividend from my company, etc... are considered by the Russian authorities and the tax paid to the Russian authorities by the HMRC? Please provide me your suggestions from the tax perspective.
Edit: Could you please include the IR35 considerations in option B and how that impacts my taxability. I am not planning to work in Russia more than 2 yrs in all cases even though the initial agreement is only 6 months repeatable.
Thanks for your reply.
What is the side effect of dormanting my company? How does it affect my tax liability and my company's tax liabilities.
I want to analyse option B also to take a learned decision as I am also considering employing someone in uk if a prospective lead materialises. Also option B was suggested by the agency.