Income tax in DR for my UK ltd

I am British and if you register in the UK as non resident you pay no tax in the UK. For the DR you pay no tax on income earned overseas, as far as I know. I earn money in the DR and in the UK. I pay no tax on income earned in the DR as I am below the minimum threshold and pay none in the UK as I am a non-resident. The UK tax authorities I have found to be very helpful and they do have a help line. Be aware if you are a non UK resident you cannot use the National Health Service and when (eventually) you receive your UK state pension there is no agreement with the DR so you will not get the annual inflation increases nor the cold weather payment.

Matilda

There may also be advantages in terms of UK VAT it you are based in Dominican Republic. Dominican tax rules mean that you only pay ITBIS if the customer is present in Dom Rep, so if your customers are all overseas then there's no ITBIS. If you can show that the Place of Supply is the Dom Rep, there is also no UK VAT to pay. HMRC has a good help section on their website to help you work out if you need to pay VAT or not.

One other thing to remember is that if you are planning to return to the UK, you can still get your Main Home Exemption from Capital Gains tax provided you can show that it was your main home before you left, you rented it out when you were working abroad, and you returned to live in it before you sold it. If you are leaving a house in the UK and renting it out, make sure you are collecting the evidence to support this chain of events, as it can save you a lot of tax if you return to the UK and then sell your house

The comment about ITBIS is misleading. If the service is provided in the Dominican Republic, it will be subject to ITBIS even if the customer is domiciled abroad.

It would be good to know for sure. I am domiciled in the DR with a registered SRL company. I have clients in the DR and overseas. Some of the overseas clients let me add ITBIS to the invoices, which I then declare and pay in the DR. Others say I'm responsible for paying my own taxes so I just declare the income.

Does this mean I shouldn't be charging ITBIS to overseas clients? My accountants have never said anything and as the bank queries larger transfers I don't want to risk not declaring this income.