Statement of Practice 1 (2014)
Published 14 February 2014
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1.Introduction
This Statement of Practice supersedes Statement of Practice 4 (2001), which made public the UK’s understanding at that time of the status, in relation to those former Soviet Republics that had been recognised by the UK as independent sovereign states, of the UK/USSR Double Taxation Convention (‘The Convention between the government of the United Kingdom of Great Britain and Northern Ireland and the government of the Union of Soviet Socialist Republics for the avoidance of double taxation with respect to taxes on income and Capital Gains’). Statemet of Practice 4 (2001) updated an earlier Statement of Practice (3 (1992))
2.What Statement of Practice 4 (2001) said
Statement of Practice 4 (2001) confirmed that the UK/USSR convention continued in force for Belarus, Tajikistan and Turkmenistan
3.Developments since
We now know that Tajikistan considers that the UK/USSR convention has never had effect in Tajikistan as Tajikistan did not complete the procedures necessary in order for the convention to have effect under its domestic law.
4.Announcement
In these circumstances, the UK will not apply the terms of the UK/USSR double taxation convention in the case of residents of Tajikistan:
- for profits arising on or after 1 April 2014, in the case of corporation tax; and
- for income and gains arising on or after 6 April 2014, in the case of income tax and capital gains tax
The UK will continue to apply the terms of the UK/USSR double taxation convention in the case of residents of Tajikistan in respect of profits arising before 1 April 2014 and income and gains arising before 6 April 2014.
In these circumstances, section 25 of the Taxation (International and Other Provisions) Act 2010 will not prevent a claim to unilateral relief in respect of Tajik taxes levied on profits, income or gains arising in Tajikistan.
The position for each of the former Soviet republics is now as follows:
| Country | Position |
|---|---|
| Armenia | A new Double Taxation Convention (DTC) is in force. See the Double Taxation Relief and International Tax Enforcement (Armenia) Order, SI 2011/2722. |
| Azerbaijan | A new DTC is in force. See the Double Taxation Relief (Taxes on Income) Azerbaijan Order, Statutory Instrument 1995/762. |
| Belarus | Both Belarus and the UK will continue to operate the UK/USSR DTC in respect of their residents. |
| Estonia | A new DTC is in force. See the Double Taxation Relief (Taxes on Income) Estonia Order, Statutory Instrument 1994/3207. |
| Georgia | A new Double Taxation Agreement (DTA) is in force. See the Double Taxation Relief (Taxes on Income) (Georgia) Order, SI 2004/3325 and the Double Taxation Relief and International Tax Enforcement (Georgia) Order, SI 2010/2972 (Protocol). |
| Kazakhstan | A new DTC is in force. See the Double Taxation Relief (Taxes on Income) Kazakhstan Order, Statutory Instrument 1994/3211 and the Double Taxation Relief (Taxes on Income) Kazakhstan Order, Statutory Instrument 1998/2567 (Protocol). |
| Kyrgyzstan | Kyrgyzstan is not operating the UK/USSR DTC in relation to residents of the UK. The UK ceased to operate the UK/USSR DTC in respect of profits arising on or after 1 April 2002 and income and gains arising on or after 6 April 2002. |
| Latvia | A new DTC is in force. See the Double Taxation Relief (Taxes on Income) Latvia Order, Statutory Instrument 1996/3167. |
| Lithuania | A new DTC is in force with effect from April 2002. See the Double Taxation Relief (Taxes on Income) Lithuania Order, Statutory Instrument 2001/3925 and the Double Taxation Relief (Taxes on Income) Lithuania Order, Statutory Instrument 2002/2847 (Protocol). |
| Moldova | A new DTC is in force. See the Double Taxation Relief and International Tax En-forcement (Taxes on Income and Capital) (Moldova) Order, SI 2008/1795. |
| Tajikistan | Tajikistan is not operating the UK/USSR DTC in relation to residents of the UK. The UK will cease to operate the UK/USSR DTC in relation to residents of Tajikistan in respect of profits arising on or after 1 April 2014 and income and gains arising on or after 6 April 2014. |
| Turkmenistan | Both Turkmenistan and the UK will continue to operate the UK/USSR DTC in respect of their residents. |
| Ukraine | A new DTC is in force. See the Double Taxation Relief (Taxes on Income) Ukraine Order, Statutory Instrument 1993/1803. |
| Uzbekistan | A new DTC is in force. See the Double Taxation Relief (Taxes on Income) Uzbekistan Order, Statutory Instrument 1994/770. |