UK DTCs and TIEAs - negotiating priorities for the year to March 2010 and report on recent developments

The Financial Secretary, Stephen Timms MP, has announced details of the UK’s treaty negotiating priorities for the year to 31 March 2010.

Details

The Government reviews the UK’s Double Taxation Convention (DTC) priorities each year to ensure that the treaty network continues to meet the needs of the businesses and individuals receiving income from abroad. The Government also has an ongoing programme of Tax Information Exchange Agreement (TIEA) negotiations with jurisdictions that have committed to implement the international tax standard of transparency and exchange of information for tax purposes. HM Revenue & Customs monitors the DTC networks of other countries and invites representations from business, individuals, representative bodies, other Government departments and others with an interest in this area. We use the results, balanced with an estimate of the resources available, to produce a schedule of work for the year ahead.

Programme to 31 March 2010

We plan to take forward work on new DTCs with Australia, Austria, Belgium, the British Virgin Islands, the Cayman Islands, Croatia, Ethiopia, Germany, Hungary, Israel, Luxembourg, New Zealand, Oman, Qatar, Spain, Switzerland and Thailand.

We also plan to take forward work on TIEAs with Anguilla, Gibraltar and the Turks & Caicos Islands.

Recent developments

The DTC between the UK and the Kingdom of Saudi Arabia, signed in London on 31 October 2007, entered into force on 1 January 2009. The text has been published as the Schedule to the Double Taxation Relief and International Tax Enforcement (Taxes on Income and Capital) (Saudi Arabia) Order 2008 (Statutory Instrument 2008 No. 1770). The text of the Order can also be accessed on the Internet at: The Double Taxation Relief and International Tax Enforcement (Taxes on Income and Capital) (Saudi Arabia) Order 2008 (PDF 1.1MB) (Opens new window)

In the UK the provisions of the Convention will take effect from 1 April 2010 for Corporation Tax purposes and from 6 April 2010 for Income Tax and Capital Gains Tax purposes. In Saudi Arabia the provisions will take effect from 1 January 2010.

The DTC between the UK and the Republic of Slovenia, signed in London on 13 November 2007, entered into force on 11 September 2008. The text has been published as the Schedule to the Double Taxation Relief and International Tax Enforcement (Taxes on Income and Capital) (Slovenia) Order 2008 (Statutory Instrument 2008 No. 1796). The text of the Order can also be accessed on the Internet at: The Double Taxation Relief and International Tax Enforcement (Taxes on Income and Capital) (Slovenia) Order 2008 (PDF 1.21MB) (Opens new window)

In the UK the provisions of the Convention took effect from 1 April 2009 for Corporation Tax purposes and from 6 April 2009 for Income Tax and Capital Gains Tax purposes. In Slovenia, the provisions took effect from 1 January 2009.

A DTC between the UK and the Republic of Moldova, signed in London on 8 November 2007, entered into force on 30 October 2008. The text has been published as the Schedule to The Double Taxation Relief and International Tax Enforcement (Taxes on Income and Capital) (Moldova) Order 2008 (Statutory Instrument 2008 No. 1795). The text of the Order can be accessed on the Internet at: The Double Taxation Relief and International Tax Enforcement (Taxes on Income and Capital) (Moldova) Order 2008 (PDF 1.13MB) (Opens new window)

In the UK the provisions of the Convention took effect from 1 April 2009 for Corporation Tax purposes and from 6 April 2009 for Income Tax and Capital Gains Tax purposes. In Moldova, the provisions took effect from 1 January 2009.

A Protocol to the DTC between the UK and Switzerland, signed in London on 26 June 2007, entered into force on 22 December 2008. The text has been published as the Schedule to The Double Taxation Relief and International Tax Enforcement (Taxes on Income) (Switzerland) Order 2007 (Statutory Instrument 2007 No 3465). The text of the Order can be accessed on the Internet at: The Double Taxation Relief (Taxes on Income) (Switzerland) Order 2007 (PDF 582K) (Opens new window)

The provisions took effect from the dates set out in Article XIV of the Protocol.

A Protocol to the DTC between the UK and New Zealand, signed in London on 7 November 2007, entered into force on 28 August 2008. The text has been published as the Schedule to The Double Taxation Relief and International Tax Enforcement (Taxes on Income and Capital) (New Zealand) Order 2008 (Statutory Instrument 2008 No. 1793). The text of the Order can also be accessed on the Internet at: The Double Taxation Relief and International Tax Enforcement (Taxes on Income and Capital) (New Zealand) Order 2008 (PDF 242K) (Opens new window)

The provisions of the Protocol took effect in both the UK and New Zealand from 28 August 2008.

A TIEA between the UK and the Overseas Territory of Bermuda, signed in London on 4 December 2007, entered into force on 10 November 2008. The text has been published as the Schedule to The International Tax Enforcement (Bermuda) Order 2008 (Statutory Instrument 2008 No1789). The text of the Order can also be accessed on the Internet at: The International Tax Enforcement (Bermuda) Order 2008 (PDF 780K) (Opens new window)

In the UK and Bermuda the provisions of the Agreement took effect from 4 December 2008 .

A TIEA and an Arrangement amending the 1955 Double Taxation Arrangement between the UK and the Isle of Man, signed in Douglas on 29 September 2008, entered into force on 2 April 2009. The text has been published as the Schedule to The Double Taxation Relief and International Tax Enforcement (Taxes on Income and Capital) (Isle of Man) Order 2009 (Statutory Instrument 2009 No 228). The text of the Order can also be accessed on the Internet at: The Double Taxation Relief and International Tax Enforcement (Taxes on Income and Capital) (Isle of Man) Order 2009 (PDF 638K) (Opens new window)

The provisions of the TIEA took effect in the UK and the Isle of Man from 2 April 2009. The provisions of the Arrangement took effect in the Isle of Man from 6 April 2009 and are effective in the UK from 6 April 2009 for Income Tax purposes and 1 April 2010 for the purposes of Corporation Tax.

Agreements were also signed with the following countries. The texts of these agreements are also available on the Internet as detailed below.

Netherlands (Double Taxation Convention and Protocol signed on 26 September 2008)
The Double Taxation Relief and International Tax Enforcement (Taxes on Income and Capital) (Netherlands) Order 2009 (PDF 1.58MB) (Opens new window)

France (Double Taxation Convention signed on 19 June 2008)The Double Taxation Relief and International Tax Enforcement (Taxes on Income and Capital) (France) Order 2009 (PDF 1.5MB) (Opens new window)

Libya (Double Taxation Convention signed on 17 November 2008)UK/Libya Double Taxation Convention (PDF 140K)

Mexico (Protocol to the Double Taxation Convention signed on 23 April 2009)Protocol to UK/Mexico Double Taxation Convention (PDF 46K)

Cayman Islands (Double Taxation Arrangement signed on 15 June 2009)Double Taxation Arrangement (PDF 49K)

A tax information exchange agreement and an agreement for the avoidance of double taxation of individuals, between the governments of the UK and the British Virgin Islands were signed in London on 29 October 2008. The text of the agreements may be accessed on the internet at http://www.hmrc.gov.uk/international/bvi-eol.pdf (PDF 69K) and on 17 June 2009 was laid as a Schedule to a draft Order in Council for consideration by the House of Commons.

A Tax Information Exchange Agreement and an arrangement amending the 1952 Double Taxation Arrangement between the UK and Jersey were signed in London on 10 March 2009. The text of the agreement and the arrangement may be accessed on the HMRC website at: Tax Information Exchange Agreement and an arrangement amending the 1952 Double Taxation Arrangement between the UK and Jersey (PDF 80K) and on 17 June 2009 was laid as a Schedule to a draft Order in Council for consideration by the House of Commons.

A Tax Information Exchange Agreement and an arrangement amending the 1952 Double Taxation Arrangement between the UK and Guernsey were signed in London on 20 January 2009. The text of the agreement and the arrangement may be accessed on the internet at Tax Information Exchange Agreement and an arrangement amending the 1952 Double Taxation Arrangement between the UK and Guernsey (PDF 57K) and on 17 June 2009 was laid as a Schedule to a draft Order in Council for consideration by the House of Commons.