Tax Professional usually responds in minutes
Our tax advisers are all verified
Unlimited follow-up questions
It’s a tax status available in the UK for people who are not domiciled in the country. This article aims to clarify some common myths and facts surrounding Non-Dom status.
What is Non-Domiciled (Non-Dom) status? Non-Dom status is a tax status available to individuals who are not domiciled in the UK. It means that they only have to pay taxes on money they earn inside the UK, not on money they make outside the UK. However, specific rules and conditions must be met, which is not a one-size-fits-all solution.
Some people think that Non-Dom status is only for the super-rich. But that’s not true! Anyone who meets the criteria can qualify for this status. Non-Doms still have to pay taxes like UK residents, but they can benefit from some tax advantages.
Another common myth is that Non-Doms don’t have to pay any tax in the UK, which is false. Non-Doms are subject to the same taxes as UK residents, including income and capital gains taxes. However, they can benefit from some tax advantages, such as the remittance basis of taxation.
One of the benefits of Non-Dom status is the remittance basis of taxation. This means that Non-Doms only have to pay taxes on the money they bring into the UK, not on the money they keep in their bank accounts outside of the UK. However, there are some restrictions and additional charges.
Non-Dom status can also help people save money on taxes and inheritances. Non-Doms are not subject to UK inheritance tax on their non-UK assets. In addition, Non-Doms can have foreign bank accounts and invest in other countries without paying UK taxes.
Non-Dom status can be a valuable tax status for people who are not domiciled in the UK. However, it’s essential to seek professional advice to ensure that you qualify for this status and that it’s the right choice for your situation.
In summary, Non-Dom status is a tax status available in the UK that can benefit people who meet the criteria. Non-Doms still have to pay some taxes like UK residents, but they can benefit from some tax advantages. The remittance basis of taxation allows Non-Doms to pay tax only on money they bring into the UK. Non-Doms can also enjoy other benefits like not being subject to UK inheritance tax on non-UK assets and having foreign currency bank accounts and investments without being subject to UK tax.
If you have any queries relating to the non-dom status UK or tax matters in the UK more generally, then please do not hesitate to get in touch with a UK tax specialist!
The content of this article is provided for educational and information purposes only. It is not intended, and should not be construed, as tax or legal advice. We recommend you seek formal tax and legal advice before taking, or refraining from, any action based on the contents of this article.
Software trained to spot undeclared swimming pools has resulted in an additional €10 million of tax revenue for the French authorities.
Okay, let’s dive in!
A machine-learning tool deployed across nine French regions during a trial in October 2021 helped authorities uncover 20,356 undeclared private pools and levy additional taxes on applicable households.
Under French law, pools must be declared part of a property’s taxable value.
As such, pools can increase the value of a property – and hike the individual tax homeowners pay.
According to Le Parisien newspaper, which first reported the news, a 30-square-metre pool is taxed at €200 (£170) a year.
Google and French consulting firm Capgemini have developed an application that uses machine learning to scan publicly available aerial images of properties for indications that a swimming pool is present.
The most obvious indication is a blue rectangle in the back garden!
After identifying the pool’s location, its address is confirmed and cross-checked against national tax and property registries.
In April 2022, The Guardian reported that the software had a 30% error rate. It would often mistake solar panels for pools or miss existing pools if they were heavily shadowed or partially covered by trees.
The French Treasury said it would expand a tool across the country that it expects will bring in around €40m (£34m) in new taxes on private pools in 2023, exceeding the £24m cost of developing and deploying the software.
The tool could eventually detect undeclared home extensions and patios that are also considered when calculating French property taxes.
“We are particularly targeting house extensions like verandas, but we have to be sure that the software can find buildings with a large footprint and not the dog kennel or the children’s playhouse,” said the deputy director general of public finances, Antoine Magnant to Le Parisien.
He added, “This is our second research stage and will also allow us to verify if a property is empty and should no longer be taxed.”
According to the Federation of Professional Builders (FPP), France has the largest market in Europe for private swimming pools, with an estimated three million in existence.
This is partly due to a boom in construction during the Covid-19 lockdowns and recent heat waves.
However, the issue has been contentious this year because of the drought in France, which has led to rivers drying up and restrictions on water usage. One MP for the French Green party has called for a ban on new private pools.
If you have any general queries about this article, please do not hesitate to get in touch.
The content of this article is provided for educational and information purposes only. It is not intended, and should not be construed, as tax or legal advice. We recommend you seek formal tax and legal advice before taking, or refraining from, any action based on the contents of this article.
This year’s tax changes include:
The COVID-19 development and high inflation of 2022 resulted in several changes to the Canadian tax system.
Taxpayers must be aware of these changes when filing income tax returns in 2023 and beyond.
To help Canadians offset inflation, which was at a historic high last year, the federal government has adjusted tax brackets for the 2022 tax year.
The new brackets and tax rates are as follows:
The Basic Personal Amount (BPA) is a non-refundable tax credit that can be claimed by any Canadian who files income taxes.
The BPA is a tax break that gives individuals making less than a certain amount a full income tax reduction. Taxpayers who make more than this basic amount receive a partial reduction.
In December 2019, the Government of Canada announced a goal to increase the Basic Personal Amount to $15,000 by 2023. This increase is being phased in over time and will reach $14,398 for the 2022 tax year.
The First-Time Home Buyers’ Tax Credit is a federal government initiative to make homeownership more affordable for some Canadians by providing a tax credit on purchasing newly built homes.
As of December 2022, eligible first-time home buyers can now claim a $10,000 non-refundable tax credit — double what they could before — which could result in tax savings of up to $1,500.
The Home Buyer’s Tax Credit will help you offset taxes you owe—enter the amount of $10,000 on Line 31270 of your income tax return.
The Old Age Security (OAS) program provides retired Canadians with income to help them throughout retirement.
However, seniors who make less income are sometimes asked to pay back some of their OAS.
The following are the revised thresholds for the 2023 tax year:
The Canada Pension Plan changed in 2023. The new calculations will be based on a legislated formula using the average growth rate of salaries and weekly wages earned throughout Canada.
The maximum pensionable earnings under the Canada Pension Plan (CPP) will be $66,600 in 2023. The basic exemption amount stays the same at $3,500 in 2023.
The CPP contribution rate has also been adjusted accordingly.
Employees and employers will pay 5.95% of their income in 2023 (up from 5.70% in 2022) to a maximum contribution of $3,754.45.
Self-employed individuals will pay 11.90% of their income in 2023 (up from 11.40% in 2022) toward a maximum contribution of $7,508.90.
The annual dollar limit for RRSPs is $29,210 for the 2022 tax year, an increase from $27,830 in 2021.
However, remember that your contribution limit is still capped at 18% of your earned income.
The Government of Canada created COVID-19 benefits to provide financial aid to those affected by the pandemic.
Those who received COVID-19 benefits in 2022 will receive a T4A slip showing all the information required to complete their income tax return.
Individuals with incomes over $38,000 might be required to pay back part or all of the benefits received.
Refusal to repay may result in the Canada Revenue Agency keeping some or all future payments, including tax refunds and GST/HST credits.
If you can’t pay in full, the CRA may work with you to arrange a payment plan.
If you have any general queries about Canadian Tax or this article, please do not hesitate to get in touch.
The content of this article is provided for educational and information purposes only. It is not intended, and should not be construed, as tax or legal advice. We recommend you seek formal tax and legal advice before taking, or refraining from, any action based on the contents of this article.
Following the implementation of Gibraltar’s new “auto-enrolment” pension scheme for Gibraltar’s largest employers—so-called “Enterprise” employers with over 250 staff – on 1 August 2021, the phased roll-out moved on to the second tranche of employers—large employers with more than 100 workers—who, by 1 July 2022 needed to provide a workplace pension plan.
The Private Sector Pensions Act 2019 ensures that people living and working in Gibraltar, will be financially protected in their later years.
Like the UK’s auto-enrolment pensions regime, the Act requires all employers in Gibraltar to provide access to a workplace pension plan and the existing State pension for all eligible employees.
If an employee chooses to join the pension scheme, the Act requires both the employer and employee to make regular minimum contributions to the employee’s pension fund.
The Act was implemented in phases to give smaller organisations more time to adjust to the new requirements.
The following deadlines were set for employer compliance under the phased implementation:
The Gibraltar Financial Services Commission (GFSC) has been selected as Pensions Commissioner under the Act to ensure that employers and those who administer pension schemes comply with the relevant requirements.
The GFSC maintains a register of employers who provide pension plans for their employees.
Employers are required to register within 90 days of the dates listed above. Employers must submit the following information:
Once an employer applies that the GFSC deems compliant with the Act, it has 21 days to enter the employer’s and its employees’ details onto the register.
Employers must inform the GFSC of any of the following events within 30 days:
The position of Spanish-resident workers in Gibraltar concerning whether the Spanish Ministry of Finance will accept contributions to their Gibraltar pension plan for Spanish tax relief purposes has yet to be clarified.
As a result, many Spanish resident workers refrain from participating in pension plans provided by their employers in Gibraltar.
During the ongoing negotiations to establish Gibraltar’s post-Brexit relationship with the European Union, hopefully this issue will be addressed.
Tax Natives is an international tax network that connects taxpayer clients with qualified and regulated tax advisers, from one jurisdiction to another.
Don’t miss out on Tax Natives’ latest tax updates worldwide. Click here to view
If you have any general queries about this article, please do not hesitate to get in touch.
Monaco’s fiscal system is based on the principle of a total absence of direct taxation. There are two exceptions to this principal;
Monaco has signed no other bilateral fiscal agreements with other countries.
Monaco residents (except French nationals) are not required to pay taxes on income, betterment or capital gains. For French nationals, two categories exist:
The following rates of inheritance tax apply to assets located in Monaco:
There is no direct tax on companies. Besides the tax on profits mentioned in the previous cases above, companies are not required to pay directly for taxes.
Registration duties are collected from those registering real estate transfers or changes of ownership.
For official civil and judicial acts, fiscal stamps are required. Furthermore, all documents which could be used as evidence in court must be stamped to be valid. Stamp costs vary depending on the document’s format or value involved.
If you have any general queries about this article, please do not hesitate to get in touch.
The Hong Kong SAR government is acting to implement the Multilateral Convention on Implementing Tax Treaty-Related Measures to Prevent Base Erosion and Profit Shifting.
The OECD developed the convention to ensure swift, coordinated and consistent implementation of its tax treaty-related base erosion and profit-shifting measures in a multilateral context.
The Multilateral Convention is one of the 15 recommended actions from the Organization for Economic Co-operation and Development’s (OECD) Base Erosion and Profit Shifting (BEPS) project.
It enables fast and steady implementation of the tax treaty-related recommendations under BEPS – hybrid mismatches (Action 2), tax treaty abuse (Action 6), permanent establishments (Action 7) and dispute resolution (Action 14).
The Inland Revenue (Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting) Order was tabled at the Legislative Council on 19 October for negative vetting.
In May 2022, China started with its approval with the OECD.
The Chinese government extended the application of the MLI to Hong Kong and its provisions will take effect here after the completion of domestic legislative procedures.
Hong Kong has listed 39 countries it has signed DTAs with as countries intended to be covered by the MLI.
The remaining six DTAs have already included BEPS-compliant provisions.
The MLI will take effect in Hong Kong concerning covered DTA’s at the beginning of April 2023 for taxes withheld at source or 1 April 2024 for other taxes.
If you have any general queries about this article on the MLI or Hong Kong tax matters, please do not hesitate to get in touch.
Dovetailing the robust growth of private banking and wealth management industries and strong growth in Singapore trust services, Singapore strengthened its status as an international financial centre.
Singapore is seen as an enticing base for trusts based on its;
Asian family businesses form the backbone of the economy in the Asia Pacific region, with 85% of companies owned by a family group.
A research study found that 20% of the top 750 global family businesses are Asia-based, with combined revenue of USD2 trillion.
Many family businesses will be undergoing a transition in the next five years. It is anticipated that over 30% will undergo a generational change.
A well-planned trust structure is a flexible vehicle ensuring a smooth succession of assets and protecting wealth for the next generation.
It allows you to maintain confidentiality while ensuring that your wealth will be well cared for.
Pre-IPO trusts are also valuable for securing wealth and liquidity created during an IPO.
Trusts are not legal entities. It is best described as an arrangement where the asset is transferred to a trustee who then holds that asset for
the gain of specified people or objects.
The lack of formal requirements for trusts, and the flexibility of a trust, make them uniquely useful for estate and succession planning.
In Singapore, trusts are regulated principally by the Trustees Act. The Act was significantly revised in 2004. Singapore trust laws are primarily based on English trust law.
Here are the essential features of Singapore trust law:
Many Singaporean and foreign High Net Worth Individuals are choosing Singapore trusts as their preferred vehicle for succession planning and wealth management because of the advantages Singapore offers as a trust jurisdiction.
If you have any general queries about this article on Singapore Trusts or Singapore tax matters, please do not hesitate to get in touch.