Hypothetical tax

Hypothetical tax

Didn't find your answer?

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

Replies (1)

Please login or register to join the discussion.

avatar
By k40911
05th Oct 2008 21:11

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.

Thanks (0)