When taxes are due in both countries, the credit will be limited to the lower taxes of the United Kingdom and the tax debt of the country of origin to the same income, which means that in the end you will always pay with the highest rates. The library collection includes many essential works for the interpretation and enforcement of double taxation conventions, as well as technical titles focused on international tax disputes related to double taxation conventions and strategic tax planning of double taxation conventions. Another common double taxation situation is that of a person who is not resident in the United Kingdom but who has income from the United Kingdom and who remains tax resident in his or her country of origin. The UK has mutual agreements with a number of countries on the EU Directive on the taxation of savings income in the form of interest. The United Kingdom has also concluded a number of non-reciprocal agreements on the European Savings Tax Directive. The double taxation convention can be complicated. Dual-residences must ensure that the amount of tax is paid, recovered or billed in each country. In some cases, more than two countries are involved. For example, in the United Kingdom, a foreigner may live as an expatriate and deduct income from a third country and should be familiar with the DBA Act to ensure that only the appropriate amount of tax has been paid in the country concerned. Our country page tax provides details on all online sources of double taxation contracts known to the library team. If the tax treaty you are interested in is not included or if you are unsure of the existence of a contract between two countries, a tax database such as the IBFD tax research platform can help fill this gap. International students studying in the UK should be aware that there are specific rules on taxation and national insurance and specific visa requirements.
Each case is different and students should turn to the East Student International Affairs Council or go to a professional specializing in international taxation to be sure of their tax debts.