A Chan

Can HMRC moderator point to someone/organization who can clarify the UK/HK tax treaty with authority? I have consulted two tax advisers but none of them have the confidence to draw a conclusion from the treaty. For example, the treaty says the following on director's income. (I picked it because it is the shortest) "Directors’ fees and other similar payments derived by a resident of a Contracting Party [UK] in his capacity as a member of the board of directors of a company which is a resident of the other Contracting Party [HK] may be taxed in that other Party[HK]." It says the director's fee received by a UK tax resident from a company in Hong Kong may be taxed in Hong Kong. But it contains nothing to say if it will be taxed in the UK or not. This leaves a lot of room for interpretation. Can you help us clarify?

Thank you so much HMRC Admin 19

Dear sir, Thank you. for replying. I refer to my first inquiry 9 days ago on my employment income, I confirm that I have returned to Hong Kong to carry out the work for certain months of the year. The nature of my work dictated that it can only be physically carried out in Hong Kong soil. Q1) Does it mean that it is not taxable in the UK? Q2) Can you please confirm that if the treaty does not say a party may tax certain income, then that income is not taxable in this party? Thank you and warm regards

There is another section of the treaty on Director's fee. Directors’ Fees Directors’ fees and other similar payments derived by a resident of a Contracting Party in his capacity as a member of the board of directors of a company which is a resident of the other Contracting Party may be taxed in that other Party . It says here the director's fee may be taxed in the other Party, does it mean this income is not taxable in the contracting party because there is no text in the treaty saying that the contracting party May tax for this director's fees.

Dear Sir, Thank you for replying to my inquiry. I have read through the treaty. The Employment Income section of the treaty is as follows: Income from Employment 1. Subject to the provisions of Articles 15, 17 and 18, salaries, wages and other similar remuneration derived by a resident of a Contracting Party (UK) in respect of an employment shall be taxable only in that Party (UK) unless the employment is exercised in the other Contracting Party (HK). If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other Party (HK). In the above section, its says that income earned in HK from a HK employer by a UK tax resident MAY be taxed in HK. It does not exactly say if the income MAY be taxed in the UK as well. Does it mean this income will not taxed in the UK, if tax has already paid for this income in HK? Is the correct way of interpreting the treaty that if it doesn't state explicitly that a party may tax a certain income, then the income is not taxable by that party? Thank you for your clarification.

Dear sir/madam, My mom has become UK tax resident in 2023, she still received HK government pension and some rental income from her farm in HK on a monthly basis. The amount of pension is about GBP8000k per year and rental income about GBP5000 per year. Does she need to file for self assessment in the UK? Is her income subject to UK tax?

Thank you v much HMRC Admin. So if I don't bring my rental income in HK to the UK, I don't need to declare it, is this correct? I am preparing my self assessment for 2023-24 right now. I have the following during the year: 1) HK employment income (which I have paid tax in HK) for a HK employer 2) Interest earned from banks in HK 3) Dividends from fund investments in HK 4) Interest income in the UK May I confirm if my understanding is correct? A) I do not need to declare in my self assessment of my HK employment income. They are only taxable in HK. B) I cannot bring my HK employment income into the UK, otherwise they shall be subject to UK tax. C) I need to declare my interest from HK, dividend income from HK and interest income in the UK in my UK self assessment. D) Would it still be eligible for UK personal allowance in my self assessment for the year 2023-24? Thank you so much in advance.

Thank you. My work is for a HK employer. Since it is only taxable in HK, would it be liable to UK tax if I bring it to the UK? How about my rental income from HK from a property I own in HK? Is it liable to UK tax? Any restriction in bring it into the UK? Warm regards

I have become a UK tax resident in 2023. But I still return to HK for a few months each year to work. Is this income from HK taxable in the UK? Do I need to declare it in self assessment per UK/HK tax treaty?