The general rule is that if you have a UK job, the income from that job is subject to UK income tax. This is valid regardless of your residency status. However, this is not the whole story, as the terms of a UK double taxation treaty will have an impact on it. In many cases, these contracts can be used to exempt any UK salary from UK income tax. In this article, we look in detail at the use of double taxation treaties to avoid UK tax on labour income. Double taxation treaties are treaties between different countries that apply to determine which country should tax certain forms of income and profits. However, the provisions are much broader and can also be used to determine the tax domicile of a person or company. Writing and publishing e-books has become a big deal. Many people write e-books and some generate considerable revenue. This article discusses UK tax planning for e-book royalties, including the possibility of applying double taxation treaties and how UK withholding tax can be avoided. Directors moving abroad should ensure that they carefully review their tax status. In particular, the terms of double taxation treaties can have a significant influence on how directors are taxed.
This article discusses the impact of double taxation treaties on foreign-based administrators. Read more The need for double taxation treaties arises from the fact that many countries tax both the income of their inhabitants and all income generated within their borders. Thus, an inhabitant of a country (France) can be taxed by France on his world income. However, if some of its revenue was generated in the UK, the UK might also want to tax income generated inside the UK. This could have the effect of taxing the same income twice (i.e. UK income). These are double taxation treaties that could provide for either a tax exemption in one country or a tax credit for offsetting the tax debt of the other country. Tax issue: A US citizen and a UK resident currently relies on the UK-US Double Taxation Convention (DTT) to treat their UK working pension in the way it typically corresponds to a US pension scheme set up in the US, thus excluding pension contributions and growth from US tax.
However, paragraph 1 of Article 1 of the TD-T provides that “except as expressly provided, this Convention shall apply only to persons established in one or two Contracting States”. What would happen to the US taxation of his UK pension if he moved to a third country (for example. B HK), i.e. he is no longer resident in the UK? Thank you. Read more If you want to offer services from abroad to clients in the UK, it would be beneficial to carefully adhere to the terms of a double taxation treaty. In this article, we look at how using double taxation treaties can significantly reduce your UK tax debt. Read more Financial services representatives of the two states signed a memorandum of understanding in May 2004. After years of support, the memorandum not only facilitates a formal basis for cooperation between the two authorities, but also facilitates the exchange of information and cooperation in investigations. The fundamental objective of the agreement is to prevent financial crime. In order to foster the growth of international trade, including financial services, successive Maltese governments have attempted to conclude double taxation agreements with major trading partners as well as with emerging countries. . .