I am currently employed by a British company and work from home in India. I get paid in pounds every week. My question is: can I benefit from double taxation, since I am already in India? In addition, I received this year a bonus for the 2016-17 fiscal year. So in which GJ will the same one be taxed? The bonus corresponds to the previous year. If you decide to offer tax or tax services, you will receive an offer that will allow you to decide whether you want to continue or not. Where you reside in the contract, it is determined by the application of a series of “Tie Breaker” tests, as described in the corresponding double taxation agreement with the United Kingdom. Under the agreement, a 5% withholding tax rate on interest and royalties will also be applied in the source state. Dividends are subject to a withholding rate of 5%, provided that the beneficiary has (directly or indirectly) a majority stake of at least 25% of the share capital of the dividends. A rate of 15% applies when dividends are paid on income (including profits) directly or indirectly from real estate from an investment vehicle that distributes most of this income each year and whose income from these properties is exempt. In another context, withholding tax is 10%. As a general rule, they still receive relief, even if there is no agreement, unless the foreign tax does not correspond to UK income tax or capital gains tax. The table below shows countries that have entered into a double taxation agreement with the United Kingdom (as of October 23, 2018).
On the UK government`s website, you will find an updated list of active and historic double taxation conventions. Double taxation agreements (also known as double taxation agreements) are concluded between two countries that define the tax rules for a tax established in both countries. The Indian government and the Government of the United Kingdom of Great Britain and Northern Ireland, in order to conclude an agreement to avoid double taxation and to prevent tax evasion with respect to tariffs on surrendered persons, have agreed on the following: I am the RNA. My family lives with me in Doha. My wife has fixed deposits and dividends for shares and small interest income. The total income is less than Rs2 lakh. Is she entitled to a single tax exemption? Please advise you. Although the application of double taxation agreements is relatively common, the right to tax relief can be complicated.
Click here to read the Mint ePaperMint is now on telegram. Join the mint chain in your telegram and stay up to date with the latest economic news. Equal treatment between companies in the two countries is also defined as a principle in the agreement, as is the procedure for mutual cooperation with the use of diplomatic channels, which would contribute to a more effective resolution of problems.