PAYE operation: double taxation claims submitted by non resident individuals: certification by an overseas tax authority
One condition for relief from UK income tax usually included in a Double Taxation Agreement (DTA) is that the beneficial owner of the income must be resident in the country as defined in the DTA. Some DTA’s also require that the income on which relief from UK tax is claimed must be subject to tax in the other country. See INTM332200 for more about subjection to tax.
All DT forms need to be certified by the tax authorities of the individual’s country of residence. The wording of the certification required will depend on the terms of the relevant DTA. The certification provides evidence that the individual is regarded by the overseas tax authority as being resident there for purposes of that country’s tax.
Most overseas countries will fill in the certification box on the front of our DT individual claim forms, using the official tax authority stamp.
However, there are other examples of acceptable certification and some certification issues requiring special attention. These include
Cayman Islands (wef 06/04/2011)
All Cayman Islands cases should be referred to CAR PT International Advisory (DT), Room 240 St John’s House, Merton Road, Liverpool L75 1BB.
No DT relief is available for residents of Cyprus whose claims lack the certification of the internationally recognised Republic of Cyprus; in particular we should not accept a claim purporting to be certified by the non-internationally recognised Turkish Republic of North Cyprus (otherwise known as Mersin 10). The UK / Turkey DTA does not apply to residents of Cyprus. See INTM348040 for more information.
All Israel cases should be referred to CAR PT International Advisory (DT), Room 240 St John’s House, Merton Road, Liverpool L75 1BB.
The Maltese tax authorities emboss the claim. These can sometimes be difficult to identify and so need particular attention.
The Portuguese tax authority no longer stamp/emboss DTA claim forms but instead provide a certificate of residence. The residence certificate will show validation numbers. The certificates can be validated on the Portugese Government Website.
Action to take
To view the Portugese Government website in English use ‘Google Apps HMRC’ and insert into the search field. On the page select ‘Translate’ on the pop up. To validate the certificate click on
- Tax Services
- Other Services
- Document Validation
- Validation Code
You are then presented with a copy of the electronic version of the Certificate of Residence.
If you are unable to get the page translated to English, on the Portugese Government website select
- Servicos Tributarios
- Outros Servicos
- Validacao de Documento
This page then asks you to enter 2 references (which can be found on the Certificate of Residence)
- No Contribuinte
- Cod Vaidacao
Note: Depending on the search engine used you may have to unblock ‘Pop Ups’ which appear at the top right hand corner.
You are presented with a copy of the electronic copy of the Certificate of Residence.
All Qatar cases should be referred to CAR PT International Advisory (DT), Room 240 St John’s House, Merton Road, Liverpool L75 1BB.
All Saudi Arabia cases should be referred to CAR PT International Advisory (DT), Room 240 St John’s House, Merton Road, Liverpool L75 1BB.
For residents of Spain, the Spanish tax authorities are no longer verifying Part A of the form Spain Individual (PDF 191KB). Spanish residents are now supplied with a certificate from the Spanish tax authorities.
There are two types of certificate
- Residencia Fiscal en España - which is issued to establish, in general, residence on Spanish territory
- Residencia Fiscal en España Conveñio - which is issued to establish resident status in Spain for the purposes of the provisions of an agreement to avoid double taxation signed by Spain
Action to take
Spanish residents making a claim to relief from UK tax under the UK / Spain DTA should still complete the form ‘Spain Individual’ but should now submit their original Residencia Fiscal en España Conveñio with their claim form. You can accept this certificate as evidence of their Spanish residence for dealing with claims to relief under the UK / Spain DTA. (Do not accept the Residencia Fiscal en España for claims made under the DTA).
Care needs to be taken to ensure certification has been provided by the Taiwanese and not the mainland Republic of China tax authorities, confirming that any pensions are subject to tax. Taiwanese certification often includes a separate certificate from their office in Taipei. Any cases of difficulty should be referred to your local band O / HO support.
All claims received from individuals resident in the USA should include an attached separate ‘Form 6166’ confirming that the claimant is a resident for US tax purposes.
Where an individual is unable to obtain certification, alternative evidence of entitlement to DT relief may be considered. Pass such cases to your local band O / HO support.
Claim through an SA return
On an SA return individuals will claim DT relief using an HS304 (PDF 121KB) (HMRC website) (external users can find the guidance at http://www.hmrc.gov.uk/helpsheets/hs304.pdf). This can be accepted although relief is only applied for the year of the SA return.
The list above provides the main common examples but is not exhaustive.