NATO Salary

Hi, I understand that NATO employees are exempt from tax on their salaries under the Ottawa Agreement (Article 19). If an individual is based in Belgium (but who is resident and ordinarily resident in the UK), would this tax free status of the NATO employment extend to it not being declarable for tax purposes in the UK? Thank you

Hi
An individual who is in the direct employment of one of the NATO Headquarters is entitled to exemption from Income Tax on his emoluments provided they
hold a permanent administrative assignment
are not a member of the locally engaged staff and
are remunerated in accordance with NATO established salary scales.
The exemption applies irrespective of their citizenship.

You are tax exempt but I also have a query, Are you classed as an ex pat or not an ex pat?

Hi
An expat is someone who lives outside their native country, whether for a a few weeks,months and even decadese or or someone who has not decided upon the duration they will live outside their native country.  This may be the result of work, retirement or any other reason.  It is effectively another word for immigrant.

Hello, I emigrated to the UK in Dec '23 after retiring from my full time position with NATO. After conducting the SRT and registering with HMRC, I am considered resident for the entire 23/24 tax year. I am clear that UK income tax needs to be paid on the NATO pension I have received since residing in the UK (January - March '24). My question relates to the NATO salary I earned while living in Germany in '23. I understand from previous posts in the thread that my NATO salary in '23 is considered tax free. If this is the case, is it even reported on the Self Assessment? Many thanks for your assistance.

Hi David Nelson,
If you meet the criteria here:
INTM860610 - Forces of other countries stationed in UK: NATO Headquarters employees
Then it is still tax free.
Thank you. 

 

Hi Your answer is quite different from the answer given to Filbert 79 in this thread 8 months ago. Can you clarify how NATO salary earned at HQ outside of the UK is treated? Thanks DN

Hi ,
 

The NATO salary would be tax free . Thank you .

Hi a slight variation on this question please. I am unclear by what is termed 'not a member of locally engaged staff'. So if a UK national applies for a UK based NATO post does this classify them as locally engaged staff? so in this instance would the UK national (normal resident in the UK) accepting a NATO post receive tax fee salary or would it be taxed?

Hi richardmel1

Locally engaged staff' would be staff who are not 'civilian staff personnel with a permanent administrative assignment’.  
This may be for example office cleaners, service providers/contactors, building maintenance staff.

Thank you

Dear HMRC, thanks for this. Can you confirm that a prior UK resident (irrespective of nationality) who accepts a NATO HQ job in the UK (assuming permanent administrative role) would be tax-free? The guidance, INTM860700 and the International Organisations Act 1968 seems to indicate this, but section 833 3c of the Income Tax Act seems to restrict the exemption to someone who "is in the United Kingdom, but only because of being employed by the designated allied headquarters". So which is which? Thank you

Hi Juian,
Please refer to INTM860720 - Employees of international organisations: claims by individuals
Thank you.

 

Hi HMRC - if my company supply software licenses to NATO for use by NATO stakeholders in member nations and Non-NATO entities are NATO exempt from VAT at source and if not what documentation needs to be provided to NATO for them to reclaim the VAT

Dear Paul Carroll,
NATO is not exempt from paying VAT outright. 
The Place of Supply rules determine whether VAT needs to be charged based on the location of your customer. 
Please refer to the guidance at:
Place of supply of services (VAT Notice 741A) Section 6
Thank you.