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Dual Tax Query

 
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Traveller



Joined: 12 Nov 2020
Posts: 3

PostPosted: Sat Nov 12, 2020 11:51 am    Post subject: Dual Tax Query Reply with quote

I work on a Ship in Azerbaijan national Waters (Caspian Sea) for approx 185 days per year with another 10 days travelling through various countries.
Full Azeri income tax is paid calculated on my entire income on my behalf by my employer & I am passed a certificate of tax paid at the end of each financial year.
I am currently registered as a UK taxpayer & whilst there is no need, I am eligable to claim UK Seamans tax relief under the existing scheme (which I use as belt & braces at the moment).
I own a house in france and am considering taking up permanent residence there, how would this affect my tax position?
Notes:
I would not earn any money on French soil
My rotations would remain the same, IE less than 180 days spent in Europe.
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Stephen



Joined: 19 Oct 2020
Posts: 91

PostPosted: Mon Nov 14, 2020 9:11 am    Post subject: Reply with quote

For income tax purposes, once you move to France you will lose your
UK tax status and reliefs.Provided that you spend more than 182 days outside France per calendar year, and that there is a favourable double income tax treaty between France and Azerbaijan, you will be assessed to French income tax under French rules of assessment (different from those which apply in the UK) with credit given for any tax already paid outside of France on the same source of income.

Unless you are truly resident in France (and do not simply own a property
there), and unless a favourable doble tax treaty exists, you may also be
liable to pay an annual French tax of three times the 'notional rental
value' of your French house.
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Traveller



Joined: 12 Nov 2020
Posts: 3

PostPosted: Mon Nov 14, 2020 2:06 pm    Post subject: Reply with quote

Stephen,

What is the relavance of the 182 day rule? IE what would the situation be supposing I spent less than 182 days outside French soil?
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Stephen



Joined: 19 Oct 2020
Posts: 91

PostPosted: Tue Nov 15, 2020 9:25 pm    Post subject: Reply with quote

Hi Traveller,

Even if you spend less than 182 days per calendar year on French soil, you
are still domiciled/resident in France for internal French tax purposes if
you spend more time in France than in any other country per calendar year.

Stephen
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Traveller



Joined: 12 Nov 2020
Posts: 3

PostPosted: Wed Nov 16, 2020 2:19 pm    Post subject: Reply with quote

Hi Stephen,

Thanks for your replies here these are most helpfull.

I take it then that as long as I can prove residence in Azerbaijan for more time than I do in France, I do not have to declare...is this correct?
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