For the purposes of this Article, we consider a natural person to be a tax resident of the United Kingdom and an additional country, although double taxation treaties may exist between two countries. Under UK rules, he is not resident, so he is taxable in the UK only on his income from the UK. Mark remains resident in Germany and is therefore taxable there with his worldwide income. The double taxation treaty tells Mark that the UK has the main right to tax income and that if Germany also wants to tax it, the foreign tax credit method should be used to avoid double taxation. You may have to pay taxes in the UK and another country if you reside here and have income or profits abroad, or if you are not resident here and have income or profits in the UK. This is called “double taxation.” We explain how this can apply to you. If you spend more than 6 months a year in another EU country, you may be considered a tax resident in that country and unemployment benefits transferred from another country may be taxed there. In fact, according to many bilateral tax treaties, unemployment benefits are taxed only in the country of tax residence. Another common situation when it comes to double taxation is when a person who is not a resident of the UK but has income from the UK and remains a tax resident in their home country. A double taxation agreement effectively takes precedence over the national law of both countries. For example, if you are not a resident of the United Kingdom and you have bank interest in the United Kingdom, that income would be taxable in the United Kingdom as income of the United Kingdom under national law.
However, if you are a resident of France, the double taxation agreement between the UNITED KINGDOM and France states that interest should only be taxable in France. This means that the UK must give up its right to tax this income. In this situation, you would make a claim to HMRC (in practice, this would normally be done in a self-assessment tax return) to exempt the income from UK tax. The special scheme applies both to income from work and to professional activity carried out in Greece. In particular, a person who transfers his tax residence to Greece and who fulfils the conditions required to benefit from the special tax regime shall be entitled to an exemption from income tax and solidarity contributions for 50 % of his income from work carried out in Greece during a tax year. The above exemption also applies to natural persons who transfer their tax residence to Greece in order to become entrepreneurs in Greece. 50% of their income from commercial activities in Greece is exempt from income tax and the special solidarity contribution in a given fiscal year. Persons who qualify for such special taxation may only benefit from this advantageous regime for seven (7) consecutive taxation years. After the expiry of the seven-year period, the special tax regime is no longer valid. Indirect taxes account for more than 40% of the State`s tax revenues. (a)the provisions set out in the Agreement, as set out in the Annex to this Regulation, have been concluded with the Greek Government in order to ensure relief from double taxation as regards income tax, income tax or excess profit levy and taxes of a similar nature imposed by Greek legislation; and www.government.is/topics/economic-affairs-and-public-finances/tax-treaties/double-taxation-treaties/#panel-7a79c16a-d05d-11e7-941f-005056bc4d74-29 The following table lists the countries that have concluded a double taxation agreement with the United Kingdom (as of 23 October 2018). On the UK government`s website, there is an up-to-date list of active and historical double taxation treaties.
Individuals who use the alternative taxation method should cumulatively meet the following conditions: www.porezna-uprava.hr/en/EN_porezni_sustav/Pages/double_taxation.aspx double taxation treaties (also known as double taxation treaties) are concluded between two countries that define the tax rules when it comes to a tax of both countries. Since there are many rules and complications that can arise when applying double taxation treaties, it is important to seek professional help from a qualified and experienced accountant. Every double taxation treaty is different, although many follow very similar guidelines – even if the details differ. 2. For the purposes of this Article, “tax authorities” in the case of the United Kingdom means the Commissioners of Inland Revenue or their authorised representatives; in the case of Greece, the Director-General of Taxation or his representative; and, in the case of a territory to which this Convention is extended in accordance with Article XVII, which is responsible for the administration of the taxes to which the Convention applies in that territory […].
