What is Corporate Tax Residence?

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Corporate tax residence is the concept by which the taxing rights over a company’s profits and gains are determined. Different countries have different ways of defining corporate tax residence, which can create complexity for companies operating in more than one country.

A company will be a UK tax resident if it is incorporated in the UK. A company will also be a UK tax resident if it was not incorporated in the UK but is centrally managed and controlled (highest level of decision making) in the UK.

For example, if the directors of a company in Jersey are making their decisions from the UK, then the company would be considered a UK tax resident.

If a company is a UK tax resident then all of the company’s worldwide profits and gains will be taxed in the UK, at the UK Corporation Tax rate.

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