I have a client who considers himself UK tax resident but with employment income from China. He is a pilot who will have spent more than 90 non-working days in the UK but with all employment duties carried out/taxed paid in China.
We want to claim exemption from UK tax under the DTA with China, Article 15, Section 3. Besides completing the Employment pages and Foreign Pages noting the tax paid in China, are there any additional pages or sections to complete to claim the DTA relief?
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Why do you think this is exempt?
Not sure why you think this would be exempt from UK tax? It is taxable with a foreign tax credit claim.
You would need to check the SRT.
If he doesn't meet any of the the automatic overseas tests (or split year treatment), then his Chinese income is going to be taxable in the UK - even if performed wholly abroad.
What I expect you will need to do therefore, is just complete the foreign earnings pages of the tax return, and enter all the details on there. There aren't any additional pages as such to claim the DTA relief.
There'll be a question somewhere where you need to claim the type of DTA relief you want (tax credit or the other type, which I can't remember the name of).
UK tax will then be calculated and an appropriate relief for the foreign tax paid will be given.
I honestly don't know about the Chinese DTA in any detail (or any other DTA for that matter!).
I was just commenting on the usual UK treatment of foreign earnings.
I'd be sceptical that the DTA would make the Chinese income exempt, but I wouldn't like to say for sure.
The DTA would not make the Chinese income exempt since the UK has a credit system and not an exemption system.
DTA
Art 13 allows China to tax the income if he is employed by a Chinese airline. It also allows the UK to tax the income if he is employed by a UK airline.
However, it does not prevent either country taxing the income under their domestic laws.
UK DTAs will exempt some income from taxation, so it is not solely a credit based system