Double Tax Agreement Greece and Uk

Double Tax Agreement between Greece and UK: Key Points to Know

The Double Taxation Agreement (DTA) signed by Greece and UK is an essential aspect of their bilateral economic relations. The agreement is designed to avoid double taxation of income and capital gains earned by individuals and companies in both countries while promoting trade and investment. Here`s what you need to know about the DTA between Greece and UK:

Scope of the Agreement:

The DTA covers all taxes on income and capital gains imposed by either Greece or UK, be it a resident or a non-resident. It includes taxes on income, profits, gains from real estate, dividends, royalties, pensions, and other income sources. The DTA also provides for mutual assistance in the collection of taxes.

Taxation Rules for Residents:

For individuals, the DTA ensures that they are only taxed in their country of residence, except for income from business activities or employment carried out in the other country. It also provides for relief from double taxation by allowing the taxpayer to claim a credit for taxes paid in the other country.

For companies, the DTA ensures that they are taxed in their country of residence for their income and capital gains. However, if a company has a permanent establishment in the other country, it may be taxed on its income earned there in accordance with the local laws.

Taxation Rules for Non-Residents:

The DTA sets out the rules for taxation of non-residents in both Greece and UK. For instance, a non-resident individual may be subject to tax in Greece for income from employment or business activities carried out within the country. Similarly, a non-resident company may be taxed on the income earned from a permanent establishment in either country.

Capital Gains:

The DTA provides for taxation of capital gains in the country of residence of the taxpayer. However, gains from the sale of immovable property may be taxed in the country where the property is located.

Dividends and Interest:

Under the DTA, dividends paid by a company in one country to a resident of the other country are taxed at a reduced rate of 5% if the recipient owns at least 25% of the share capital. Otherwise, the rate is 15%. The DTA also provides for reduced tax rates for interest income paid between residents of the two countries.

Conclusion:

The Double Taxation Agreement between Greece and UK is a significant aspect of their economic relationship. It provides for a fair and efficient system of taxation, promoting trade and investment between the two nations. As a copy editor, it is crucial to understand the key provisions of the DTA and their impact on individuals and companies.