# Tax Reclaims



## gaz6683 (Jul 15, 2011)

Hello,
Working in the north sea (oil rigs) 3 Weeks on 3weeks off rotation but live in albufeira portugal when off the Rig. 
Do I pay less uk tax or whats the set up??
Im not a portuguese resident.
As Im not in the UK apart from work in the middle of the sea, should I pay TAX
Any Help appreciatted
Gaz


----------



## robc (Jul 17, 2008)

gaz6683 said:


> Hello,
> Working in the north sea (oil rigs) 3 Weeks on 3weeks off rotation but live in albufeira portugal when off the Rig.
> Do I pay less uk tax or whats the set up??
> Im not a portuguese resident.
> ...


Hello Gaz.

Before you can decide/appeal against any Tax currently paid, you need to establish a couple of things. 

1. In which country does your employer have its business registered?
2. In which country are you Tax resident and also deemed domiciled?

This will establish where you should be taxed currently and may also allow you to elect to be taxed in a different country.

As ever, the usual caveats............Complex Tax Arrangements are best dealt with by a fully qualified accountant.

Rob


----------



## gaz6683 (Jul 15, 2011)

*Hey robc*

Hello,
thanks for the reply!! employer in based in singapore and im a uk resident.
I have booked and appointment with my accountant but wanted an opinion from someone who new the ins and outs of the system.
Do you know if the tax in portugal is less than uk or more tax paid?
Thanks again
Gaz


----------



## canoeman (Mar 3, 2011)

You say you are a UK Resident but live in Albufeira when off the rig, you can't have both worlds, the Portuguese tax authorities might well consider you a "tax" resident if your "permanent" home is here.

As robc has said it is your Resident status that requires establishing first.

You don't say if it is a UK or Portuguese accountant, generally neither is familiar with the tax or resident laws of both countries, so you need to consult 2.


----------



## siobhanwf (Mar 20, 2009)

There are two companies that might be able to help Gaz either Belvin Franks or Euro finesco.

They can both offer advice on Portuguese and International income tax

http://www.blevinsfranks.com/en/content/315/portugal

WELCOME TO EURO FINESCO S.A. | FISCAL & EXPATRIATE SERVICES | Finesco is a full service company, helping expatriates to make the most of their new life in Portugal since 1991


----------



## robc (Jul 17, 2008)

gaz6683 said:


> Hello,
> thanks for the reply!! employer in based in singapore and im a uk resident.
> I have booked and appointment with my accountant but wanted an opinion from someone who new the ins and outs of the system.
> Do you know if the tax in portugal is less than uk or more tax paid?
> ...


If you are living in Portugal for 3 weeks and then working in the North Sea for 3 weeks then the annual time split would be approx 50/50. 
Although not guaranteed it is likely that HMRC would consider your residency status to match your Taxation Status. i.e. If you are taxed in the UK then you are resident in the UK. 
*The Portuguese Tax Authorities may have something to say about that though!!!!*
You do not mention if you have a Fiscal Number and/or a Fiscal representative in Portugal. This may help to clarify your position.

As far as I know the two taxation regimes are broadly similar for PAYE, not sure about other employed status though........................someone will be along I guess who can answer that. 
HTH

Rob


----------



## canoeman (Mar 3, 2011)

Doing a very quick search it's very clear that working offshore in the North Sea can have some UK tax benefits, one thing that does stand out is that you do reguire a Fiscal or tax number and a place and country of residence.

If you want to take any advantage of any favorable tax breaks then you should settle this matter first, but you'd need to check the tax implications for your country of Residence, as that sounds like Portugal, you would be required to file a yearly tax return including world wide earnings and any tax paid, so you would not be taxed on same money twice. 
You really need advice from an accountant versed in these 3 areas.


----------



## gaz6683 (Jul 15, 2011)

hey folks, how are yous? im getting there but 2 more question? 
Do use know of any accountants and what 1s to stay clear of, 
What exactly does my fiscal number do 4 me in portugal as I can get 1 when im not a resident and get 1 when I am, Confussed???
Thanks


----------



## siobhanwf (Mar 20, 2009)

Hi Gaz

Try and shop for anything large and you will know exactly what you fiscal number can do for you!
Without it you cannot do ANYTHING in Portugal! Resident or otherwise!
You will not be able to get an EDP (Electricty ) account opened, buy anything over about 2000 euros, Telephone, water.

Get the idea???


----------



## canoeman (Mar 3, 2011)

Fiscal number, you can get one whether a Resident or not. It is a basic requirement for living in Portugal, and identifies you with the Tax authorities, so an easy way to keep track of your tax affairs in Portugal.

You *must* have a Fiscal number to be able to buy a property, car, have utilities and quite a few other things, so I'm a little surprised if you live in Albufeira you don't already have one or realize it's importance.


----------



## siobhanwf (Mar 20, 2009)

*Número de Indentificação Fiscal (NIF)*

Not only is a fiscal card ESSENTIAL you also need to be aware that:

If information is out-of-date, there are inaccuracies and mistakes, which is all too common, this can lead to unforeseen consequences that can prove disastrous if left unchecked.

*Keeping your registered information current with Finanças is not only a VERY GOOD idea, but is also in your best interest.* The penalties for incorrect information can be quiet HIGH

Applications for an NIF number can be made by tourists or residents at the local Tax Office (finanças), on presentation of a valid passport. 
A temporary fiscal number is given until the permanent card (Cartão de Contribueinte) is issued. This process can take anything from a few months to over a year. 
This tax number *will be used* for all business transactions, buying and selling property and will appear on all tax returns.


Since the citizens card was introduced Portuguese nationals will no longer be given a Cartão de Contribueinte. *However foreigners will still issued with the Cartão de Contribueinte.*


----------



## canoeman (Mar 3, 2011)

siobhanwf said:


> Not only is a fiscal card ESSENTIAL you also need to be aware that:
> Applications for an NIF number can be made by tourists or residents at the local Tax Office (finanças), on presentation of a valid passport.
> A temporary fiscal number is given until the permanent card (Cartão de Contribueinte) is issued. This process can take anything from a few months to over a year.


Fiscal numbers are *issued immediatley* fee €7ish, a plastic card is no longer issued just the A4 record of Tax number, district, name, address, identification and representative if there is one. 
Recent changes mean a representative is not required for a non Resident but Tax offices don't post to foreign addresses so e-mail or online access to your tax a/c should be arranged. 

As siobhanwf points out keeping your information current is important, unlike UK if you move_ tax districts_ you need to re-register with your new one.

Portuguese Tax offices take the view that you are responsible to understand Portuguese tax law, not for them to point out you are doing something wrong. Not that officials are unhelpful a lot depends on the office your registered with.


----------



## gaz6683 (Jul 15, 2011)

*Hello again*

Im wondering if i can get a copy of my dates i have been in and out of portugal for tax purposes. Do the airport staff help me with this to get a copy or isnt it tracked???
Also canoeman, u say i cant have the best of both worlds, I am offshore and do have a house in uk and portugal. 
This is why my situation is so difficult to get my head around as im not in the uk for more than 93days and not in portugal for more than 183 days which is the requirement to pay tax in either country!!! any advice would be grateful.
Thanks Gaz lane:


----------



## robc (Jul 17, 2008)

gaz6683 said:


> This is why my situation is so difficult to get my head around as im not in the uk for more than 93days and not in portugal for more than 183 days which is the requirement to pay tax in either country!!! any advice would be grateful.
> Thanks Gaz lane:


These are just guidelines with respect to time spent in a country before the Tax Authorities are going to consider you to be a Tax Resident, irrespective of whether you like it or not. They have not and never will be solid rules.

With regard to proving time spent in a country, I think that this will be down to you to prove, I think it highly unlikely that you will get assistance from either Border Control or Immigration.

Don't forget you have the option of electing your place of domicility as well as residency. This may be worth investigating further as there may be considerable benefit to you electing correctly.

Rob


----------



## canoeman (Mar 3, 2011)

As robc says if the UK or Portugal decide your a tax resident then you have to *prove* to either one of them of your status, not them. Surely your employer has systems in place, I've never heard of offshore employment without.

No you can't have the best of both worlds. Residence covers 2 issues and put simply relates to 
Where your main Residence is
and
Where your a tax" resident"

You've not mentioned before that you also have property in UK but stated you lived in Portugal when not on rig, so for yourself you have a more complicated situation. 
You cannot be a Resident of 2 EU countries at one time (but can pay tax in more than 1 country) so if you want to sort out your tax situation, you need to clarify this first, and should opt for the most favorable tax regime for yourself.

The UK has recently clarified "tax residence" slightly but Portugal's is pretty clear
Page 50-51 Who is liable for IRS, and definition of Tax Residence
Liable to IRS is any individual person who is a resident of the Portuguese territory, and any non resident individual who derives income therein.
In the case of a resident in the Portuguese territory, IRS is levied on the overall income, including income from outside that territory.
There shall be considered as resident in the Portuguese territory any person who, in the year to which the income relates:
• Stays there more than 183 days, with or without interruption;
• Having stayed there for less than 183 days, has at his own disposal on 31st
December of that year a dwelling place in such conditions that it may be inferred that there is the intention to keep and occupy it as an habitual abode; 

On the 31st December, is a crew member of a ship or aircraft provided that
such person is employed by entities having their domicile, head-office or effective
management in such territory;


----------

