The table below shows countries that have entered into a double taxation agreement with the United Kingdom (as of October 23, 2018). On the UK government`s website, you will find an updated list of active and historic double taxation conventions. The Double Taxation Convention came into force on January 22, 1978. Although the application of double taxation agreements is relatively common, the right to tax relief can be complicated. Each double taxation agreement is different, although many follow very similar guidelines, although the details are different. That`s why we offer a first free consultation with a qualified accountant that will give you answers to your questions and help you understand if a double taxation agreement could apply to you and help you save huge amounts of unnecessary taxes. People who live or work abroad and have dual residences are taxable in both countries. In order to determine which country has a tax priority, the DBA will have a set of tie-break rules or tests between the two countries to determine where to pay taxes in order to avoid paying taxes in both countries. Look at the UK government`s help sheet to see if the second country has an agreement with the United Kingdom.
Individuals with dual residences in the UK and another country who have a DBA agreement can apply for full or partial tax relief for income. These include bank interest, royalties, most working pensions and pensions. For the purposes of this article, we consider that a person is tax resident in the United Kingdom and resident of an additional country, although double taxation agreements may exist between two countries. In some cases, it is possible for the person to apply for tax relief, but the amount of relief depends on the DBA agreement between the UK and the country from which your income comes. The situation becomes more complicated when tax rates vary from country to country. So what`s going on? To better understand the double taxation convention, we gave a typical example: foreign students studying in the UK must be aware of the application of specific national tax and insurance rules, as well as specific visa requirements. Each case is different and students should turn to the East Student International Affairs Council or go to a professional specializing in international taxation to be sure of their tax debts.