another double taxation question

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another double taxation question

Postby Kristian » Fri 06 Oct 2006 18:17

I'm self employed and work online. My family and I will be arriving in Malta this November. Until we decide otherwise, we intend to stay as tempory residents. We do not own a home in the UK and we do not intend to visit (if we do, it will be no more than 2 weeks per year).

Regarding taxes, can someone give me a brief idea of what I should do? Do I have to pay UK taxes? Malta taxes? Both?

Any help, much appreciated :)
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Postby oddis » Wed 11 Oct 2006 15:54

Most double taxation (DT)are quite like, but usually there is small discrepancies. I can only tell from the DTs between Norway and other countries.

As long as you do't have a home ot apartment in the UK you will be considered at resident of where you live. In your case it shouldn't be any doubt it is Malta. If you have wife and kids in Malta and carry out your business from there it can't be any doubts in my mind. Then Malta will consider you a tax resident if staying more than 182 days there.

I guess your job is regarded as idependent services and is normally only taxable in the Uk if you have some kind of permanent establishment there. I guess you haven't and thus only Malta can tax it.

Malta only taxes what you bring in to Malta. UK might have a paragraph saying they tax your income if not taxed on Malta.However, the last point assumes your income is from the UK and that you are liable to taxes there according to their internal laws.

In short: my guess is that you would only be liable to Malta taxes, but I am just an amateur.
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Re: another double taxation question

Postby engineer » Sat 14 Oct 2006 16:56

Hello Kristian,
You really need a proffessional to advise you as everyone has a different set of circumstances. However I can only say from my own experience what you should do is inform the UK tax authorities that you are moving to Malta as a resident. Unless you get a Work Permit or participate in the Permenent Residents Scheme you will be classed as a Temporary resident for taxation purposes. in which case you will pay tax on what you bring into the country to support yourself.
Good luck
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Postby gozomark » Sun 15 Oct 2006 05:21

not quite right - you only pay tax on income you bring into Malta, and income becomes capital on 31/12 - if you only bring capital in, you don't pay tax

even if you stay here permanently you do not need to become a "permanent" resident - please have a look at my posts in the last few days for for info
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