During 1994 a convention on taxation was signed by Douglas Hurd and Andrei Kozyrev, the treaty appears to be complex though it needs to be addressed in order to determine where each source of income is taxed. Furthermore, some sources such as dividends and interest could be taxed in both countries, with relief given for tax paid in one country given in the other. The treaty broadly follows the OECD convention, as do most treaties; however, there are some clauses specific to this treaty.
The treaty covers UK income tax and capital gains tax in respect of individuals and Corporation tax in respect of companies, and like a lot of treaties it does not cover Inheritance tax at all. The treaty is very legally worded document and is difficult to digest but it does cover most points that will arise in the taxation affairs of a resident of either country who has income or gains arising in the other.
Some examples of income covered by the treaty:
Income from employment is only taxed in one country valid from where the employee is currently a resident, apart from this the only exception is if the employee is resident in one country and carries most his duties in a different country.
Business profits are taxable if it has a permanent establishment in the country. However, if a company is based in the UK but has a permanent establishment in Russia, Russia may tax the profits which arise from this.
Dividends paid from a company in one country to a resident of the other country are eligible to be taxed in both countries. This is achieved by the company or institution paying the dividend deducting a withholding tax from the gross payment, under the OECD guidelines this should not exceed 15%. The recipient is then taxable in the country of their residence and is given credit for the withholding tax against their total liability on the dividend.
Interest is the same way as dividends; although the withholding tax is normally capped at 10%.
Research and Development Tax Relief is a form of corporate tax relief that may help in reducing the company’s tax bill. Such form of tax relief can only be claimed only if your company is liable for corporate tax
The way tax relief is claimed depends on the size of the company. Depending on whether the company is an SME or a Large company schemes will differ.
R&D projects that might qualify for relief
A company is only qualified to claim R&D Tax Relief if the project aims to achieve advancement in the overall knowledge and capability in the field of science and technology through resolving a specific uncertainty. The project must also be relevant to the area in which the company operates and own intellectual property that may arise from the project.
When filing the CT Return an explanation of each of the following must be given in detail:
Costs that qualify for R&D tax relief
On 16 March 2017, the Home Office has released a Statement of Changes to the Immigration Rules. These new changes will affect those applications that need to have a Certificate of Sponsorship and these changes will be in effect on 06 April 2017.
What you should know about European visas after Article 50. The UK Prime Minister Theresa May has so far not changed her mind in regards to the plans of triggering Article 50 before the end of March 2017.
For international students who wish to remain in the UK longer or would like to eventually settle. There are options to choose from, granted you are willing to stay.
As of 16 January 2017 the Prime Minister of the United Kingdom, Theresa May, has given hints that the UK is moving towards a hard Brexit. Although Theresa May insists EU citizens are ‘welcome’ to be in the UK, she cannot guarantee the right of EU citizens in the UK at an early stage. These are troubling news for Europeans and British Citizens currently living and working in the UK.
As of 24 March 2016, the UK government has announced new changes to Tier 2 type visas. This is the migration route for those who have a confirmed job offer to undertake skilled employment in the UK.
The UK government has recently introduced a significant amount of changes to immigration rules and procedures that can influence nationals of European Economic Area. These changes will come into force on the 1st February 2017, however, some changes are happening now.
A new Statement of Changes to the Immigration Rules HC667 has been laid down on the 3rd November 2016. These changes come in a whopping 90 pages however, most changes are in the language itself rather than effect. The significant changes include the increase of the minimum salary requirement of Tier 2 skilled workers; the introduction of a fresh English language requirement for family immigration regarding to Tier 4 visa and the removal of the previous 28 days’ grace period for making out of time immigration applications.