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Posted Tue, 28 May 2024 12:22:13 GMT by CM
Hello, Hope this message finds you well. I live and pay taxes in the UK. I receive some income from Finland because I am a board member of a Finnish company. The income is taxed in Finland at a rate of 35.0% (tax at source). Do I read the UK-Finland tax treaty correctly that the income is NOT taxed in the UK? Per Article 17 of the tax treaty: "Directors' fees and similar payments derived by a resident of a Contracting State in his capacity as a member of the board of directors of a company which is a resident of the other Contracting State may be taxed in other state." If I have misunderstood this (i.e., the income will also be taxed in the UK), how much can I claim tax relief? Thank you very much for your help.
Posted Fri, 31 May 2024 15:55:19 GMT by HMRC Admin 19

If you are UK resident and domiciled, you are liable on your worldwide income and you will need to declare the direcotrs fees here.

Article 17 states that it may be taxed in Finland as that is where the company is based. You can then claim Foreign Tax Credit Relief to reduce your UK liability for the same source.

Thank you. 

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