Double Taxation Relief

Double Taxation Relief

Didn't find your answer?

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

Replies (4)

Please login or register to join the discussion.

By eastangliantaxadvisor
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

Thanks (0)
avatar
By wellsolv
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

Thanks (0)
avatar
By wellsolv
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

 

Thanks (0)
avatar
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.

Thanks (0)