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Double taxation can also occur if you live in two countries at the same time. An example can be found on our page on dual residence. Therefore, we offer a free initial consultation with a qualified accountant who can give you answers to your questions and help you understand if a double taxation treaty might apply to you and help you save significant amounts of unnecessary taxes. There are thousands of double taxation treaties around the world. The UK has double taxation treaties with more than 130 countries, making it one of the largest networks in the world. The library team can help you find the contracts you need. We`re here to help you with your tax planning needs. For more information, whatever your situation, please contact us today. When two countries try to tax the same income, there are a number of mechanisms in place to provide tax breaks so that taxes are not paid twice. The first mechanism to be examined is whether the double taxation agreement between the United Kingdom and the other country restricts the right of one of the two countries to tax this income. Although relatively common, the application of double taxation treaties and therefore the right to tax relief can be a complicated issue. You may be required to pay taxes both in the UK and in another country if you are a resident 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. Another common situation where double taxation occurs is when a person who is not a resident of the United Kingdom but who has income from the United Kingdom and remains a tax resident in his or her home country. Certain types of visitors to the UK receive special treatment under a double taxation treaty, such as students, teachers or representatives of foreign governments. 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 under national law as income of the United Kingdom. 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. International students studying in the UK should be aware that there are special tax and social security rules as well as specific visa requirements.

Each case is different and students should contact the UK Council for International Student Affairs or contact a professional specialising in international taxes to avoid their tax obligations. The UK has one of the largest tax treaty networks with over 100 countries. These agreements aim to eliminate double taxation of income or profits generated in one territory and paid to residents of another territory. They work by dividing the tax rights that each country claims through its national laws between the same income and profits. Most agreements are based on the Organisation for Economic Co-operation and Development (OECD) Model Agreement. The IBFD platform contains the text of tax treaties in the languages in which they were officially drafted, but also provides unofficial translations where there is no English version (e.g. B, the 1995 Belarusian-Russian Agreement on Income and Capital Tax). In addition, the platform includes summaries/decisions of 8,000 tax treaty cases, summary tables of contract withholding tax rates and country-specific analyses/surveys for individuals and businesses.