Quote:
Originally Posted by spike
Hi,
Double tax treaty does not mean that you choose which country you pay tax in, it means that the tax you pay in Cypus will offset any tax liability you have in the UK.
|
It doesn't just offset your tax liability pound for pound, it offsets you liability fot that particular tax.
I.E.
Many of my clients have their Pensions paid into bank accounts in Cyprus, taxed at a 5% flat rate. They do not owe the UK Inland revenue the surplus percentage that they would have paid in the UK- rather, they pay nothing at all. Obviously for Pension tax they have to prove their cypriot residency.