How does using a nominee typically work for tax purposes?

Home Forums Other Discussions How does using a nominee typically work for tax purposes?

This topic contains 1 reply, has 2 voices, and was last updated by Profile photo of Streber Streber 1 week, 1 day ago.

Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • #3388
    Profile photo of LP
    LP
    Participant

    I’ve been wondering this for a while, but if I use a nominee shareholder for setting up a company, and it pays a dividend, how do you account for it? Do you just file your personal tax return as having received the dividend?

    #3393
    Profile photo of Streber
    Streber
    Keymaster

    It’s usually defined in the nominee agreement. The exact operation taken place varies a bit on the jurisdictions involved. In some cases, we use nominee dividends (the nominee just passes the dividend to the UBO, who is taxed normally) and sometimes we use trust-like setups where the nominee receives the dividends under a trust between the nominee and the UBO.

    The UBO is usually taxed as any type of dividend, and the nominee is not subject to any dividend.

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.

Skip to toolbar