What is the tax year in the TRNC?

MoonageDaydre


Joined: 09/07/2011
Posts: 70

Message Posted:
01/03/2012 00:42

I know rental income from properties in the TRNC is liable to income tax, but need to ask two questions:

1) When does this have to be declared and paid in the TRNC?

2) For a UK resident is tax on rental income still payable in the UK as well?

elko2



Joined: 24/07/2007
Posts: 4400

Message Posted:
01/03/2012 07:21

1) Yes.

2) If you declare it yes because there is no double taxation exemption agreement between TRNC and UK.

3) The tax year in TRNC is from 1st January to 31st December unless a special arrangement has been made with the tax office.

ismet

the butler


Joined: 22/06/2007
Posts: 1958

Message Posted:
01/03/2012 07:47

For rental tax, the payment has to be made before the 17th of the following month. For example February's rent has to be paid before the 17th March. Or if you receive the rent for the whole of the tenancy up front, then the tax can be paid as a whole. We have always declared our rental income in the TRNC in the UK as well, they deduct the tax off that you have paid in the TRNC as well as other expenses incurred by renting your property. The Inland revenue in the UK have ways of finding out about properties you own abroad according to our accountant, so it is always best to be honest.





The butlers wife

Dillon


Joined: 05/02/2012
Posts: 134

Message Posted:
01/03/2012 10:15

Message 1,



2) For a UK resident is tax on rental income still payable in the UK as well?



Only if you repatriate the rental income from the TRNC into the UK will you have to declare it, if the money stays offshore from the UK it can remain undeclared to HMRC and remain free of HMRC taxes.



Message 4,



I would presume you are repatriating funds from TRNC to the UK for your accountant to advise you this way?

elko2



Joined: 24/07/2007
Posts: 4400

Message Posted:
01/03/2012 11:26

msg. 3, the butler,

As far as I know according to the stoppage tax on rental easrning shoulşd be paid by the 15th of next month. If the last day falls on a holiday, it should be paid on the first working day.



The trouble begins if you collect the rental for say January in February and you go to pay the tax in March. They want to charge you for late payment. I suggest that if can't beat them join them.

ismet

Deniz1


Joined: 28/07/2009
Posts: 3829

Message Posted:
01/03/2012 16:58

The U K do not recognise TRNc as a country but they are happy to ask you to pay tax on something that doesnt exist. Double standards?

elko2



Joined: 24/07/2007
Posts: 4400

Message Posted:
01/03/2012 17:32

Deniz1, that is the correct thing to do, not double standards. In TRNC civil servants are not supposed to have a second job but most doctors and teachers practice it private institutions in the afternoons and they are not taxed. The argument is that if they tax them for the second jobs it would mean acceptance bla bla. They should tax them but not according to your reasoning. Which is correct?

ismet

Deniz1


Joined: 28/07/2009
Posts: 3829

Message Posted:
01/03/2012 17:55

iI m not disputing that its the right thing to do but how can the UK ask you to pay tax on something they say doesnt exist. When my husband died we were living in the uk and got a tax demand from HM Inland Revenue addressed to Mr ................. Deceased. When i contacted them they asked for his address ! I said he doesnt exist any more he is dead and suggested they contact him at the cemetary.They asked for the address.