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But how reliable are tax treaties? The recent Fowler Supreme Court decision against HMRC highlights the difficulty of correctly interpreting tax treaties when legal systems differ in how they treat taxpayers. And the announcement on 29 May 2020 that the Netherlands is unilaterally considering increasing withholding tax for residents of low-tax areas or areas classified as non-cooperative highlights a more fundamental problem. A double taxation convention is only as reliable as the political will that first introduced it. However, for individuals who moved to the UK before Brexit came into effect and requested the tax deferral due to the relocation at the time, the subsequent Brexit does not entail immediate taxation. In such cases, therefore, the capital gain is generally taxed only when the asset in question is actually sold at a later date. If, in other circumstances, payment of tax in instalments has been requested, the subsequent Brexit will also not result in the immediate payment of open instalments (the contrary statement in paragraph 6157b of the Austrian Income Tax Directives 2000 should not be taken into account). Any double taxation treaty is signed between two countries and, in the case of the United Kingdom, directly with other nations, including those of the European Union. The United Kingdom and Northern Ireland are currently subject to the Double Taxation Convention of 30 April 1969, BGBl. No 390/1970, as amended by bgBl. III, No 135/2010, aimed at avoiding international double taxation in the field of income taxes.

Under the agreement, transactions with the UK during the transitional period are treated in the same way as if the UK were still an EU Member State. Bilateral agreements with all EU Member States to eliminate double taxation continue to apply as is currently the case. If you are seconded abroad for a short assignment (up to 2 years), you stay in the social security system of your home country. . . .