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What is meaning of "taxable" in UK-Germany DTA?


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UK res client receives state pension from Germany. Article 17 of the UK-Germany DTA states "payments which are made in accordance with the social insurance legislation of a Contracting State shall be taxable only in that State."

Does that mean this pension is only taxable in Germany and should not be included in the UK SATR? Or does it simply mean Germany gets prority in taxing the pension and UK then gives credit for the German tax?


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19th Jun 2019 15:43

Only taxable in Germany, see here:

"German social security pensions are taxable only in Germany and are not taxable in the United Kingdom."

Thanks (2)
By zarar
19th Jun 2019 16:05
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to zarar
19th Jun 2019 16:19

I would read all the sections - just in case they contain something that overrides section 1...

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to Lone_Wolf
19th Jun 2019 16:22

e.g. section 2!

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19th Jun 2019 16:31

It's also worth knowing what HMRC thinks.

Since you're reading stuff, have a look at page FN8.

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to Tax Dragon
19th Jun 2019 17:38

FN7: "If you’re not sure whether your pension is exempt
from UK tax, ask your tax adviser." !

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20th Jun 2019 12:04

I then had a look at a few other DTAs. Surprising how much variation there is the treatment of state pensions.

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