Finnish resident UK Director

[cfb]

Hi All

I was wondering if there were any British expats on here who are also directors / shareholders in non-listed UK companies?

I have a question regarding Finnish residency and UK directorship.

I have a friend who has been offered the opportunity to invest in an existing non-listed UK company, whilst resident in Finland. For arguments sake, lets say that s/he doesn't earn any salary or have any income from a Finish source, ceteris paribus.

S/he would be paid a UK salary of £7,680 pa, and dividends of upto £32,010 pa (more than 9% of the mathematical value of the company). I understand that there is a Finnish tax of 19.6% on any UK dividends paid (30% / 70% dividend calculation), but wondered if any kind of tax would have to be paid on the £7,680. More importantly, how much and when? I think it is the old 60% pre payment of taxes which my friend might be concerned about.

Moreover, would there be a more efficient way of declaring this hypothetical situation to the tax authorities in Finland (i.e. this would be the income for this period, please tax at an appropriate rate and not a rate which could be considered extortion-to-be-refunded-at-a-much-later-date).

I'd be grateful if anyone could shed some light on this please.

TIA

[Upphew]

Hi All

I was wondering if there were any British expats on here who are also directors / shareholders in non-listed UK companies?

I have a question regarding Finnish residency and UK directorship.

I have a friend who has been offered the opportunity to invest in an existing non-listed UK company, whilst resident in Finland. For arguments sake, lets say that s/he doesn't earn any salary or have any income from a Finish source, ceteris paribus.

S/he would be paid a UK salary of £7,680 pa, and dividends of upto £32,010 pa (more than 9% of the mathematical value of the company). I understand that there is a Finnish tax of 19.6% on any UK dividends paid (30% / 70% dividend calculation), but wondered if any kind of tax would have to be paid on the £7,680. More importantly, how much and when? I think it is the old 60% pre payment of taxes which my friend might be concerned about.

Moreover, would there be a more efficient way of declaring this hypothetical situation to the tax authorities in Finland (i.e. this would be the income for this period, please tax at an appropriate rate and not a rate which could be considered extortion-to-be-refunded-at-a-much-later-date).

I'd be grateful if anyone could shed some light on this please.

TIA

http://www.tax.fi/en-US/Tax_Administrat ... nformation