If you`re considering doing business with a foreign company or you`re a UK resident earning income abroad, it`s important to know which countries have a Double Taxation Agreement (DTA) with the UK. A DTA is an agreement between two countries that aims to prevent double taxation on the same income by both countries. It also helps to promote trade and investment between the two countries.
The UK has DTAs with over 130 countries, which means that UK residents who earn income abroad or foreign companies doing business in the UK may be eligible for reduced or exempted taxes on their income. Here are some of the countries with DTAs with the UK:
1. USA
The UK-USA DTA allows for reduced taxes on income from employment, business profits, royalties, and pensions. This agreement also covers the taxation of dividends and interest income.
2. France
The UK-France DTA covers taxes on income from employment, business profits, pensions, and royalties. The agreement also applies to the taxation of income from real estate.
3. Germany
The UK-Germany DTA covers taxes on income from employment, business profits, pensions, and royalties. It also covers the taxation of income from real estate and capital gains.
4. Canada
The UK-Canada DTA covers taxes on income from employment, business profits, pensions, and royalties. It also covers the taxation of dividends, interest income, and capital gains.
5. Australia
The UK-Australia DTA covers taxes on income from employment, business profits, pensions, and royalties. It also covers the taxation of dividends, interest income, and capital gains.
These are just a few examples of the countries with DTAs with the UK. If you`re doing business with a foreign company or earning income abroad, it`s important to consult with a tax professional to determine your eligibility for reduced or exempted taxes under a DTA. Knowing the countries with DTAs with the UK can help you make more informed decisions about your business and personal finances.