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Tax free personal allowance dual tax residency. (alien.top)

submitted 11 months ago by idpro1984@alien.top to c/digitalnomad@expats.zone

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Hello everyone,

I'm curious about how the tax-free personal allowance functions in situations involving double taxation agreements.

For instance, if I'm self-employed in the UK for part of the year within the tax-free personal allowance and then work self-employed in another EU country, would the EU country expect me to pay full local tax on my UK earnings, considering I haven't paid tax there due to being within the tax-free allowance?

I have read sources that say that earnings within the tax free personal allowance is still actually taxable income at the rate of 20% or so but the personal allowance just means you don’t have to pay it.

Thank you all in advance

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[–] International_Top538@alien.top 1 points 11 months ago

Please hire an accountant ( with recognized qualifications from govt like ACA or ACCA in the UK). And take his/her services. AT threshold, you may be able to claim vat back for computers etc purchased for your self-employment business.

[–] nicholas4488@alien.top 1 points 11 months ago

If you're tax resident in two countries the tax free allowance in the other country doesn't matter. Unless a tax treaty changed how the taxes are distributed.

[–] Philip3197@alien.top 1 points 11 months ago

Typically:

The country where you are tax resident will want to tax you on worldwide income; and this according to its local (tax) legislation.

Many countries will want to tax you on the money earned while working from that country.

In many cases of DTT you will get "credit" in your tax-resident country for taxes paid in other countries.