Non UK tax resident and state pension

Non UK tax resident and state pension

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Good afternoon, the double tax treaty with vietnam allows the UK state pension to be taxable only in vietnam for vietnamese residents. Can anyone advise if a UK national and vietnamese resident needs to attach a certificate of overseas residence to their UK tax return to exclude the UK state pension from their UK taxable income on the return?

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By taxdigital
11th May 2024 07:58

You’re right that state pension received by an individual tax resident in Vietnam will be taxed in Vietnam only (Art 21). I’m not aware of how you can attach a tax residence certificate to a SA tax return unless the return is sent to HMRC by post. Since it is called self assessment the certificate is generally provided when asked for by HMRC.

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By Geoff56
13th May 2024 12:22

My understanding is that it is necessary, together with the appropriate claim form. See point 3 of Helpsheet 304:
https://www.gov.uk/government/publications/non-residents-relief-under-do...

One of my clients who is resident in Spain is having great difficulty in obtaining the specified certificate and so I do not yet feel able to exclude his UK state pension from his UK tax return.

Others who deal with such matters more routinely, may be able to offer further insight.

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Replying to Geoff56:
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By kim.shaw-and-co.com
14th May 2024 02:55

Geoff56 wrote:

My understanding is that it is necessary, together with the appropriate claim form. See point 3 of Helpsheet 304:

These might help your client :

https://www-ketoanthue-vn.translate.goog/index.php/xac-nhan-nghia-vu-nop-thue-mau-xac-nhan-nghia-vu-nop-thue/2483-mau-so-07htqt-giay-chung-nhan-cu-tru.html?

https://www-ketoanthue-vn.translate.goog/index.php/xac-nhan-nghia-vu-nop-thue-mau-xac-nhan-nghia-vu-nop-thue/2480-mau-so-04htqt-giay-xac-nhan-thue-thu-nhap-da-nop-tai-viet-nam.html?

https://sgn.evershinecpa.com/17391-2#:~:text=Certificate%20of%20residency%20able%20to,paying%20tax%20in%20these%20countries.

The COR and confirmation of tax paid in Vietnam appear to be separately supplied under different local forms, but provided the information required is supplied there ought not to be any insurmountable problem.

You can just attach completed HS204 and a pdf of the relevant certificates to the tax return when submitting it. If HMRC require the originals then they can query the return and ask for them, so the client should ensure they are available on request.

If the client has not declared and paid tax on the UK State Pension in Vietnam instead of UK then they may find the UK does not give effect to the Treaty and taxes it here anyway.

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Replying to Geoff56:
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By Matrix
14th May 2024 07:25

Will they give credit for the UK tax suffered then?

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Replying to Matrix:
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By kim.shaw-and-co.com
14th May 2024 10:31

Matrix wrote:

Will they give credit for the UK tax suffered then?

Why would they if primary taxing rights are with Vietnam ?

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Replying to kim.shaw-and-co.com:
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By Matrix
14th May 2024 12:12

This is the Spanish not providing the certificate so I was joking whether they would therefore give a credit.

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