Have just picked up a client who works in Algeria for an oil company.
They deduct Algerian tax and Hypothetical tax. Am I correct in assuming that both figures go on the return for double taxation relief?
Suffolk
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Tax equalised ?
One assumes that the client is tax equalised so the hypo tax reduces income for UK & Algerian purposes and the Algerian tax is employer paid so will itself need to be included in income as well as for DTR purposes.
The result will need to be grossed up & the employer pay any UK tax.