Warning to any noobies working abroad anywhere (eg Zurich belgium amsterdam dubai )

[NotAllThere]

The reason for the non taxation of employment income is due to an EU directive whereby a resident of one country working in another EU land (and Switzerland has signed up to this) must not be disadvantaged with respect to the residents of the country where that person is working. ..

Oh, OK. That makes sense then.

[YHB]

The reason for the non taxation of employment income is due to an EU directive whereby a resident of one country working in another EU land (and Switzerland has signed up to this) must not be disadvantaged with respect to the residents of the country where that person is working. This of course doesn't apply to investment income, so that is a mudlled free for all.

But if you are a contractor on ongoing renewals then you get the crappier permit and taxed at source when working via agency.

[YHB]

The reason for the non taxation of employment income is due to an EU directive whereby a resident of one country working in another EU land (and Switzerland has signed up to this) must not be disadvantaged with respect to the residents of the country where that person is working. This of course doesn't apply to investment income, so that is a mudlled free for all.

in my situation, my end client paid for Tax advice from the London Branch of KPMG Tax specialists division- Together with its sister agency in Switzerland they concluded as my Tax residence status could not be got around then I am liable for tax at UK rates - swiss already paid. The only thing they could offer is a efficient tax return service.

The guy I dealt with was very clued up.

[BlasterBates]

(1) Income derived by a resident of a Contracting State in respect of professional services or other activities of an independent character shall be taxable only in that State unless he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities. If he has such a fixed base, the income may be taxed in the other State but only so much of it as is attributable to that fixed base.

No he isn't as you can see above coutesy of HMRC.

[YHB]

No he isn't as you can see above coutesy of HMRC.

link please?

[BrilloPad]

Actually know a lot more than you I'd bet - studied Accountany and many of my peers went onto to take it up who i still socialise with, couldn't stand it myself lol but the knowledge helps.

Unless they have come across it before they dont- 90% or more will never deal with a overseas contractor.


Believe it or not the knowledge of all accountants is not uniform!

Gosh - that must be fun.

[YHB]

Quote:
(1) Income derived by a resident of a Contracting State in respect of professional services or other activities of an independent character shall be taxable only in that State unless he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities. If he has such a fixed base, the income may be taxed in the other State but only so much of it as is attributable to that fixed base.

No he isn't as you can see above coutesy of HMRC.

erm:


double taxation agreement, Article 22: Elimination of double taxation


(1) Subject to the provisions of the law of the United Kingdom regarding the allowance as a credit against United Kingdom tax of tax payable in a territory outside the United Kingdom (which shall not affect the general principle hereof):

(a) Swiss tax payable under the laws of Switzerland and in accordance with the provisions of this Convention, whether directly or by deduction, on profits, income or chargeable gains from sources within Switzerland (excluding. in the case of a dividend, tax payable in respect of the profits out of which the dividend is paid) shall be allowed as a credit against any United Kingdom tax computed by reference to the same profits, income or chargeable gains by reference to which the Swiss tax is computed:


From the horses mouth:
http://www.hmrc.gov.uk/manuals/dtmanual/DT18171.htm

[expat]

No he isn't as you can see above coutesy of HMRC.

Income derived by a resident of a Contracting State in respect of professional services or other activities of an independent character shall be taxable only in that State

That's "professional services or other activities of an independent character" as opposed to activities that are treated as employment for tax purposes.

And we all know which country does that.

[Bear]

Gosh - that must be fun.

<sarcasm>

Yeah - hanging around with accountants! Ooh thrilling! What fool would do that out of choice?

</sarcasm>

[YHB]

Originally Posted by BlasterBates
Quote:
(1) Income derived by a resident of a Contracting State in respect of professional services or other activities of an independent character shall be taxable only in that State unless he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities. If he has such a fixed base, the income may be taxed in the other State but only so much of it as is attributable to that fixed base.

No he isn't as you can see above coutesy of HMRC.

Resident is the key word - IR 20 (the subject of this thread) is the decider of residence.

If Residence is in UK then even if this was correct it means 40%!! We are talking of people who fall within as people who are resident in Switzerland would be exempt from any Uk tax and that is not the subject of this thread