# Double Tax Treaty



## mriksman (Jul 26, 2013)

Hey Guys,

I'm looking at being resident in Netherlands, and working abroad in Egypt. I will be in Egypt for 182 days of the year, and my employer will be paying tax.

Trying to decipher the DTA;

1. Subject to the provisions of Articles 16, 18 and 19, salaries, wages and other similar remuneration derived by resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State. 

2. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first– mentioned State if: a. the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in any twelve month period commencing or ending in the fiscal year concerned, and b. the remuneration is paid by, or on behalf of, an employer who is not a resident of the other State, and c. the remuneration is not borne by a permanent establishment or a fixed base which the employer has in the other State. 

Thoughts?


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## ducati (Jul 15, 2010)

Hi, 
Your post is from a while back but it might be still useful to you. My partner is in a similar situation. A great accountant specialised in people working abroad (mostly seafarers) is Tysma Lems. They are our accountant and have saved us thousands. tysmalems


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## mriksman (Jul 26, 2013)

Thanks for that. We've decided to move to Ireland, and as I will be out of the country for more than 183 days, I am non tax resident and therefore do not need to worry about DTA's. 

Thanks for the follow up though.


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## ducati (Jul 15, 2010)

mriksman said:


> Thanks for that. We've decided to move to Ireland, and as I will be out of the country for more than 183 days, I am non tax resident and therefore do not need to worry about DTA's.
> 
> Thanks for the follow up though.


That's great! Before you moved to Ireland did you research any other EU countries that apply the 183 rule? We are considering moving country as well and regarding the tax question my research so far is not going very smooth. Most countries that appear to have the 183 rule do not apply it if you have your main place of residence in the countries (i.e. having your family there, a house, a car, drivers licence, bank account etc.). Do you know of any other countries where one would be considered non-tax resident?


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## mriksman (Jul 26, 2013)

I'm assuming you mean having your foreign income not tax assessable. Obviously any money you earn in the country you live in will always be tax assessed. 

UK has a very easy follow set of rules; for me it gives me 91 days in the country. Spain is also 183 days, except if you have a wife and one or more dependant children. 

That's the only countries I've checked so far.


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## ducati (Jul 15, 2010)

mriksman said:


> I'm assuming you mean having your foreign income not tax assessable. Obviously any money you earn in the country you live in will always be tax assessed.
> 
> UK has a very easy follow set of rules; for me it gives me 91 days in the country. Spain is also 183 days, except if you have a wife and one or more dependant children.
> 
> That's the only countries I've checked so far.


Yes, foreign income tax for somebody working out of the country that they live for more than 183 days a year. Thanks for your answer. Spain seems to be a grey zone though because you might be still taxable if you have family living there.


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## Bevdeforges (Nov 16, 2007)

mriksman said:


> Thanks for that. We've decided to move to Ireland, and as I will be out of the country for more than 183 days, I am non tax resident and therefore do not need to worry about DTA's.
> 
> Thanks for the follow up though.


Be careful with that 183 day "rule" - because as far as I understand it, that's more of a rule of thumb than an actual hard and fast determinant of your tax residence. 

For most countries, you are considered tax resident if you have your "main center of interests" in the country. The 183 day thing is usually nothing more than an assumption that if you sped 183 days in a tax year in the country, then your "main center of interest" is assumed to be there. However there are lots of other factors to take into account, like where your family is located, if you regularly return to a specific location, where you have your bank accounts, medical records, bulk of your assets, etc.
Cheers,
Bev


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## ducati (Jul 15, 2010)

Bevdeforges said:


> Be careful with that 183 day "rule" - because as far as I understand it, that's more of a rule of thumb than an actual hard and fast determinant of your tax residence.
> 
> For most countries, you are considered tax resident if you have your "main center of interests" in the country. The 183 day thing is usually nothing more than an assumption that if you sped 183 days in a tax year in the country, then your "main center of interest" is assumed to be there. However there are lots of other factors to take into account, like where your family is located, if you regularly return to a specific location, where you have your bank accounts, medical records, bulk of your assets, etc.
> Cheers,
> Bev


Thanks for your reply. Yes I know, that's why I'm trying to find out which countries don't see it that way. I believe Switzerland does but I'm still in touch with the local tax office to see if that is really true. The only country where the 183 day rule really does apply that I have found so far is the UK.


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## nikkisizer (Aug 20, 2011)

Residency is a very complex area and the existing HMRC UK residency rules changed significantly with effect from the 2013/14 tax year involving the new statutory residence test (SRT). 

Ties such as home, work, family etc. in the UK may class you as UK resident for tax purposes regardless of where you reside. 

If classed as UK resident you would then be taxed on your worldwide income so it is very important that your individual circumstances are dealt with correctly to protect your residency status and exposure to UK taxation.


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