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-   -   taxation when closing foreign company (https://www.englishforum.ch/finance-banking-taxation/295388-taxation-when-closing-foreign-company.html)

HolySmoke 25.11.2019 22:25

taxation when closing foreign company
I am resident in CH and i am looking to close down a foreign company that i fully own in UK. I understand there are several ways to extract the retained earnings and wind down the company. In short the money can be paid out as either income, dividend or capital gains. Now, how will that be taxed? Since i am Swiss resident these days and no longer UK resident, do i still have to pay tax in UK? And how about in CH, which tax do i have to pay here?

fatmanfilms 25.11.2019 22:38

Re: taxation when closing foreign company
Switzerland does not tax capital gains, however if you return to the UK within 5 tax years then UK CGT would be payable.

HolySmoke 01.12.2019 10:22

Re: taxation when closing foreign company
Thank you fatmanfilms. The reasoning to take a dividend is to make the remaining retained earnings small enough so that i don't have to use a Liquidator (which comes at a cost). However, my conclusion is that if i were to take a dividend then that would be taxed in UK (and likely also in CH). The alternative is to go for a MVL and using a Liquidator. The capital gains tax would be zero in both UK and CH.

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