HM Revenue and Customs (HMRC) has announced the details of the U.K.’s treaty negotiating priorities for 2019. This year, HMRC will begin negotiations on double taxation treaties with New Zealand, Peru, and Sri Lanka. The tax agency will also continue double taxation treaty discussions with 11 other countries [HMRC, Policy Paper, Planned Negotiations on Double Taxation Agreements for 2019
, 4 March 2019].
Double taxation treaties
A double taxation treaty is an agreement designed to protect against the risk of double taxation where the same income for a business or individual is taxable in both countries. The U.K. maintains a list of current tax treaties
with other countries and regions. This website contains details about the agreements along with the actual agreements and any amendments made to them.
Discussions with New Zealand, other countries
HMRC plans to enter into discussions with many countries and regions to update its double taxation treaties. HMRC plans to begin negotiations with three countries: New Zealand, Peru, and Sri Lanka. HMRC will also continue discussions on double taxation treaties with 11 countries: Costa Rica, Ghana, Greece, Kazakhstan, Lebanon, Luxembourg, Malawi, Nepal, Portugual, Romania, and Russia.
Since 1 January 2018, HMRC has signed new agreements and many have entered into force. There are new agreements with four countries: Austria, Cyprus, Israel, and Mauritius, and three crown dependencies: Guernsey, Jersey, and the Isle of Man. The following agreements have entered into force: Austria, Australia, Belarus, Cyprus, Guernsey, Isle of Man, Jersey, Lesotho, Mauritius, and Uzbekistan.
Laura Lough, Esq., is Director of Publications for the American Payroll Association.