Double taxation

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But does it matter more in Malta than at home?

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Postby costablanca » Tue 02 May 2006 08:02

Tim, we have arranged a furnished 6 month let initially. So we are hoping not to bring too much over per month. We think it wise not to become resident after reading posts on this forum. We do have a few tax issues and would appreciate someone recommending an expert to visit, but if they aren't going to tax us until maybe next year we have plenty of time.

My husband has a teacher's pension and as it's a local authority UK pension, they will not pay it gross. So we wondered if that would be exempt from Malta Tax. Anyone know?
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Postby Tim » Tue 02 May 2006 08:48

There's a double taxation treaty between UK and Malta, so the same income won't be taxed twice. When you get your tax form you tick a box to say that you have already been taxed on the income and you attach photocopies of payslips or whatever you've got that can prove it.

It sounds like your finances are pretty straighforward and peronally I wouldn't waste my money on a tax expert for this sort of thing. When you get here, go into the Tax Office in Victoria (it's a lovely building and worth it just for that!) and make an appointment to talk to an inspector. They won't try to screw every last penny out of you, they will try to figure out what you are required to pay. They will be quite happy to tell you that because of this, that or the other, you can claim a reduction or exemption, and they will even show you which boxes on the tax form to tick and tell you what other paperwork you need to supply.

However, please read the disclaimer!!


Tim
Last edited by Tim on Tue 02 May 2006 10:29, edited 1 time in total.
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Postby costablanca » Tue 02 May 2006 09:12

Thanks Tim, brilliant. Maybe see you in July!
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Postby Tim » Tue 02 May 2006 10:32

Yep, hope so!

Good luck with your move and post any other queries you have. Also feel free to keep us up to date with chit-chat about your arrival etc in the Knight and Rabbit!

By the way, I forgot to add my famous disclaimer to my reply, so I've edited it in now

Tim
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Postby George A » Mon 15 May 2006 09:48

All,


I hope to become the holder of a Permanent Residence Permit. I understand that the Maltese authorities do not require me to spend a fixed number of days on the Island.

I do not have a home in the UK and I plan to spend only a couple of weeks of the year in the UK.

I wonder if anyone knows what I have to do to comply with the conditions of the UK Double Taxation Treaty in order to satisfy the UK Inland evenue that I am tax resident in Malta. For example:

1. how many days do I have to spend in Malta?

2. are there any other conditions that the UK IR will require as evidence that I am tax resident in Malta?

All information gratefully received.

Thanks,
George
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Postby Tim » Sun 21 May 2006 10:38

Hi George,

Welcome to the forum! Since this is a question that could have legal implications, please be sure to read our disclaimer which applies to everything on the forum including this reply.

If you don't have a home in the UK because you are living in UK in a place belonging to family or friends, then when you move overseas you will need to write to your tax inspector asking to be treated as non-resident. If you are already living overseas somewhere I assume you will already have done that.

When you receive your UK self-assessment tax-form, it will include a page called 'Non-residence etc.' On that page, question 9.16 asks 'In which country are you resident?' It is a tax form, the section of questions is seeking information about where you are resident for tax purposes and there is no guidance in the notes to suggest otherwise, so if you have been granted permanent residence in Malta, you can write 'Malta'. You can attach a photocopy of your Permanent Residence Permit to support this. You don't have to spend any days in Malta but you do have to comply with the property ownership and taxation regulations of the PRP as discussed on another thread.

Since you are not spending much time in either the UK or Malta, you might have tax liability in the place(s) where you do spend most of your time.

Hope this is helpful,

Tim
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Postby George A » Mon 22 May 2006 09:09

Tim,

Thanks very much for the reply and, yes, I have read the disclaimer!

Regards,
George
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