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Posted Tue, 21 Nov 2023 07:40:26 GMT by
Hi I am UK Resident but employed full time by a South African company ( No UK presence). I do my job, exercise the employment from my home in the UK. There is a Double Taxation Agreement between SA & UK and I just want some clarity on whether I should pay taxes in the UK first and claim the credit in SA or pay taxes in SA and claim credits in the UK? DTA - Article 14 Income from Employment is specific about where the employment is exercised and since I am working remotely in the UK, this is where I am unclear on how to interpret the DTA. For purposes of taxes where is my employment being exercised ? Where should I be paying my taxes first? For clarity this is the section of the DTA I am querying: "Article 14 Income from Employment 1. Subject to the provisions of Articles 15, 17 and 18 of this Convention, salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State. 2. Notwithstanding the provisions of paragraph 1 of this Article, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first-mentioned State if: (a) the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in any twelve-month period commencing or ending in the fiscal year concerned, and (b) the remuneration is paid by, or on behalf of, an employer who is not a resident of the other State, and (c) the remuneration is not borne by a permanent establishment which the employer has in the other State. Regards 

Name removed admin .
Posted Wed, 22 Nov 2023 16:49:48 GMT by HMRC Admin 10
As UK resident then you will be declaring the income in the UK.
If tax has been paid in SA, you can claim this as foreign tax credit relief upo to amount of UK tax that would be due -
Tax on foreign income
Posted Thu, 23 Nov 2023 06:15:20 GMT by
Hi Thank you for your response. I understand I can claim tax credit relief but my question is which country has first rights to Tax? UK or SA
Posted Fri, 24 Nov 2023 10:59:13 GMT by HMRC Admin 20
Hi Mechell Mcghee,
If you are resident in the UK while undertaking work for an overseas employer (non government employer), HMRC will have the right to tax your income before South Africa.
Article 14(1) advises that  If you are physically in SA when undertaking the work then they have the right to tax your employment income for the time you are in the country.
Thank you.


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