It is also possible that more than two countries are involved, for example. B a national of a country, may live in the United Kingdom and have foreign income from a third 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. Most countries enter into double taxation treaties with other countries to facilitate the exchange of information and prevent double taxation of income for their residents who have ties and income from the other country or who actually reside in both countries. Most treaties are based on OECD conventions. Expatriate Tax Planning Amanda Sullivan, 2019 A practical title designed to help plan international assignments. Chapter 7 guides the reader through the reasons for double taxation of income, the context of double taxation treaty relief, and the practical application of tax treaties. Planning points are highlighted throughout the chapter. Requesting this book by e-mail to people who live or work abroad and have a dual residence are taxable in both countries. To clarify which country has priority in terms of taxation, the DTA will have a set of rules or “tie-apart tests” between the two countries to define where taxes must be paid to avoid taxes in both countries. Check the UK government`s helpsheet to find out if the second country has a DTA agreement with the UK.
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. If you spend more than 6 months in a year in another EU country, you may be considered a tax user from that country and unemployment benefits transferred from another country may be taxed there. In fact, according to many bilateral tax treaties, unemployment benefits are only taxed in the country of tax residence. . . .