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Taxionary

Double Taxation Agreement

[ˈdʌbᵊl tækˈseɪʃᵊn əˈɡriːmənt]

Term

Summary:

A Double Taxation Agreement is signed between two countries to try and avoid the same income being taxed twice. It exists to help promote international trade.

More detail:

A Double Taxation Agreement is a treaty between two countries which aims to avoid the taxation of the same income twice. It exists in hope of encouraging international trade and investment. It also aims to provide transparency for taxpayers with complicated tax structures.

If a Double Taxation Agreement exists between the UK and another country, it is possible to claim back the foreign income tax incurred on foreign income as a tax relief for your Self Assessment in the UK.

If you are not a UK resident but earn UK income, you will still have to file a Self Assessment but a Double Taxation Agreement should allow you claim back this tax in your country of residence.

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