Income Tax on Overseas Earnings in TRNC

adkdundee


Joined: 01/08/2010
Posts: 86

Message Posted:
28/10/2010 11:27

I've looked in previous articles on this subject so not to waste time with repeat posts but failed to find a definitive answer. We have recently relocated to TRNC.



My situation is that I work on contract overseas with my wife and son based in TRNC. At present we are drawing cash/creditcard/debit card from a UK bank to pay living expenses. I want to change that system as I'm paid in US$ into a UK bank then withdraw in TL. I'm being hit 3 x times on the Ex rate so want to change.



My question is: If I transfer an amount directly to a TRNC bank from my employer (in Palestine) do I attract any form of income tax?

Lazy days


Joined: 24/07/2008
Posts: 847

Message Posted:
28/10/2010 11:45

Arthur I dont believe you do unless you have taken out temporary residency and declare that it is earnings, We set up a payment into a TRNC account with the HSBC some years ago and it works fine, but I could be wrong and stand to be corrected

A

adkdundee


Joined: 01/08/2010
Posts: 86

Message Posted:
28/10/2010 12:09

Hi Alison,



Thanks for that. I won't take up residency as I'll never be in the country for over 90 days but Shirley will as our boy's at school. Do you know if their is a tax implication if the account is in her name?

Lazy days


Joined: 24/07/2008
Posts: 847

Message Posted:
28/10/2010 12:18

I dont believe there will be Arthur, as it can be (is) you paying her maintenance if push comes to shove

adkdundee


Joined: 01/08/2010
Posts: 86

Message Posted:
28/10/2010 12:40

Thanks Again Alison

breezyboy


Joined: 14/05/2007
Posts: 1179

Message Posted:
28/10/2010 13:06

Hi AdkDundee,

For info, you can pay into a $ account in TRNC and then transfer into either current or timed deposit accounts in TL when the exchange rate suits you. You can have Visa, Mastercard or Amex on the current accounts as well. Garanti have a good tried system in place for all of this. Creditwest have better interest for deposits.

Both have internet banking.

karakum5c



Joined: 18/03/2008
Posts: 1021

Message Posted:
28/10/2010 13:19

Remember if you use HSBC bank account they are now obliged to report everything to the UK inland revenue, dont know if this would effect you or not----beware.



Turk Bankasi Ltd also do internet banking home and abroad, and are under the radar of certain bodies.

Swany



Joined: 01/12/2009
Posts: 255

Message Posted:
28/10/2010 14:46

Re 1 @ Arthur

Current understanding of the TRNC income tax legislation is that there is no liability on offshore income. This means that you will be able to bring directly in to the TRNC from your employer without any income tax liability in the TRNC.



Re 7 @ Karakum5c

Can you let me know where I can find out more about that (I have a vested interest as I have an account with them)? Does that mean that the UK revenue will be having information on every HSBC account in the world or just one those that are still UK resident for tax (ie not filled P85)?

Thanks.

adkdundee


Joined: 01/08/2010
Posts: 86

Message Posted:
28/10/2010 17:27

Thanks to all for your responses. Very helpful and a bit of a relief.



Arthur

Joe Soap


Joined: 17/10/2008
Posts: 170

Message Posted:
28/10/2010 18:39

Swany,



Overseas revenue will only be disclosed to the Uk revenue if your overseas bank account shows your UK address.

proger1



Joined: 18/04/2009
Posts: 2919

Message Posted:
28/10/2010 19:35

Arthur,

As someone who is actually living the lifestyle you are starting, I have sent you some info by mail as I don't want to start disagreements on here as I normally do with those that are just posting heresay and out of date information.

girne 29


Joined: 06/12/2007
Posts: 1488

Message Posted:
28/10/2010 21:14

Swany



UK is only interested in catching those who tax evade and there are plenty of them to investigate without wasting time on non residents.Why would they be interested in the bank account details of people who are not liable for tax anyway?



'Overseas revenue will only be disclosed to the Uk revenue if your overseas bank account shows your UK address.'

Wrong, in the treaties sofar regarding tax evasion with the European Banks,and if there is agreement with HSBC TRNC thiat will also apply,it states --'-provides for the exchange of information about interest payable to residents of other countries.'. The use of non UK addresses as an evasion tactic wont work .I have opened two overseas bank accounts and on each occasion ,my passport number was filed,from that number HMRC knows I am Brit and can find my NI number ,UK address or previous. My passport has a chip that logs entry into the UK and out,everytime you buy planeticket your passport number is used in the booking.

adkdundee


Joined: 01/08/2010
Posts: 86

Message Posted:
29/10/2010 10:34

Paul,



Many thanks, have received and replied to both email addresses.



Cheers Arthur