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Double Taxation Relief

Double Taxation Relief

I work in Norway as a Scottish Company and pay full Norwegian Tax and NI and Employers NI to Norway.

In the UK I offset my comapny's Corporation Tax liability with the foreign earned income tax under DTR - Double Taxation Relief. The rational is that it is tax on the same source income.

I am just double checking whether Employers NI paid overseas can also be used to offset UK Corporation Tax in the same way as Foreign Income Tax.

Many thanks in advance.

WS

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09th Dec 2012 17:34

I would question why the Emplorers NI is being deducted? Is it on your salalry? If so, then I would agree it can be offset agiinst Corpoartion Tax

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09th Dec 2012 17:39

Alternative Question

Perhaps I should have asked how Employers NI is recorded for accounting purposes in the UK.

Is it recorded as a cost or as a tax in the accounts?

Any help would be much appreciated.

WS

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09th Dec 2012 17:47

Thanks Arthur

Arthur,

That was weird as soon as I pressed 'post' I heard a bleep and it was the notification of your reply.

Thanks for your feedback. Yes the Employers NI is calculated as 14,1% of gross salary. So it is a direct salary tax in Norway but as my company is based in Scotland I have to file UK returns. I have previosuly assumed that it would be offsettable so any feedback is welcome.

WS

 

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By bertiln
10th Dec 2012 11:34

Employers NI is a social security tax, it is not a tax on profit so I can't see how it could be offset against CT a tax on worldwide profit.

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