Are SIPP lump sum cash withdrawals covered by the Malta UK Dual Taxation Treaty

Hi, Can you please confirm if lump sum withdrawals from a UK SIPP are covered by the Dual Taxation Treaty between the UK and Malta. I will be transferring all the withdrawal to my Maltese bank account and paying the appropriate tax due in Malta on the withdrawal - would this then be covered by the Dual Taxation treaty between the two countries so I could claim back any tax taken by HMRC on the withdrawal. Regards

Hi,
It is covered under the other income article.
Thank you.

Hi, I have made the cash withdrawal from my SIPP from which emergency tax was taken. The whole of the post tax amount I transferred to Malta. When completing the DT Individual Form Question 7 asks if I receive any special benefits which mean I pay either no tax or reduced tax on the income transfer. My questions are: 1/A certain amount of the transfer will be zero tax rated. I will indicate this amount on the form. Will this zero rated amount be covered by the Dual Taxation Treaty between Malta and the UK so no UK tax will be withheld and I receive a tax refund equal to the amount of tax taken on this amount. 2/The second question is whether the tax rate I pay is counted as a reduced rate of tax or not. I am on the Global Residency Programme in Malta which means I am taxed at a rate of 15% on ALL foreign sourced income, with a minimum tax payment of EUR 15,000p/a. For domestic sourced income the tax rate varies from zero for incomes below EUR 12,700p/a up to 35% for income over EUR60,000 p/a. All those on the Global Residency Programme pay 15% on foreign sourced income with a minimum payment of EUR 15,000 to be paid. Does the 15% tax rate on the remittance of my SIPP to Malta count as a special tax rate for Question 7 on the DT Individual. Many thanks for your help. Regards

Hi,
We cannot advise you on the complexities of Maltese tax. Article 18(1) advises that your UK SIPP is taxable only in Malta.  
To claim the tax back from the UK, you will need to download the double taxation treaty form here:
Double Taxation: Treaty Relief (Form DT-Individual)
Please send the completed and signed form to the Maltese tax authorities for validation. They will return the validated form to you, so that you can send it to HMRC at the address on the front of the form.
Thank you.

 

My situation is similar. I have SIPP in UK . I am planning to move my residence to ITALY. I have already taken my 25% tax free amount. This SIPP is not an annuity I can do cash withdrawals of any amount when required. The pension provider would have taken tax at source. would I just need to fill this form, get it stamped etc https://www.gov.uk/government/publications/double-taxation-treaty-relief-form-dt-individual ? If also I state that I will take a fixed mount every month would then not taxed any more? This will not be a real annuity, because I can change the amount if I so decide.. sorry i put my question here, because I don't know I to enter a new post