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Where Taxpayers and Advisers Meet

Double Taxation

cmskelley
Posts: 4
Joined: Sat Mar 14, 2015 10:11 pm

Double Taxation

Postby cmskelley » Wed Apr 24, 2019 6:52 am

hi i am not clear on double taxation agreement, specifically with Cyprus. I understand that DTA means that if you pay tax in one jurisdiction it should not payable in another. But what if -in the case of Cyprus, you are also entitled to a personal allowance? So lets say 10K income is generated in Cyprus and therefore is no tax payable there, because of the personal allowance available.. is that income then taxable in the UK, as a UK resident?

darthblingbling
Posts: 240
Joined: Wed Aug 02, 2017 9:09 pm

Re: Double Taxation

Postby darthblingbling » Wed Apr 24, 2019 7:37 am

Depends on the income

cmskelley
Posts: 4
Joined: Sat Mar 14, 2015 10:11 pm

Re: Double Taxation

Postby cmskelley » Wed Apr 24, 2019 9:17 am

rental property income

AGoodman
Posts: 785
Joined: Fri May 16, 2014 3:47 pm

Re: Double Taxation

Postby AGoodman » Wed Apr 24, 2019 10:34 am

The DTA will just give a tax credit for rental income (Art 22(1)(a)). If you don't pay any actual tax in Cyprus then you have no credit to set against your UK tax liability. There is no exemption.

cmskelley
Posts: 4
Joined: Sat Mar 14, 2015 10:11 pm

Re: Double Taxation

Postby cmskelley » Wed Apr 24, 2019 11:06 am

thanks thats great.


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