UK Taxation

[HIDDEN]

I am currently in the process of applying for relief on double taxation and could do with a bit of assistance.

Filling in the DT/Individual form seems quite straightforward except for Part B section 8

Do you receive any special benefits in your country of residence which mean that you pay no tax there

  I expect the answer to this is yes, I am not charged anything. Does this mean that the revenue boys will deny the claim?

Next question

The legislation in your country of residence that grants the benefits

Has anyone an idea what the answer is?

[HIDDEN]

If anyone has successfully applied for relief from double taxation in the UK could they tall me if they need to get the DT form stamped in Malaysia before they send it.

I seem to be in a "catch22" situation because the Malaysian rules seem to be saying that there needs to be a letter from inland revenue in the UK befopre they will stamp the form.

Any advice would be appreciated.

Thanks

Bob

[HIDDEN]

I do not know anything about this D/T form...but the question was
What Special benefits...
Without being nosey...what special benefits do you get from your country of residence...assuming Malaysia.
Seems like the form is very general and could apply anywhere.
Some countries, for example Canada, give pensions etc.
That is what I would assume as a special benefit.
If otherwise, I would simply give a negative response to that question.

David

[HIDDEN]

The special benefits would be zero taxation on overshore income in Malaysia. Which is pretty special I think.

They are talking about benefits in the country of residence, ie Malaysia, they are not referring to special benefits in the country of nationality.

I must have explained it poorly because I think you got the wrong end of the stick

If anyone has actually completed this form could they PM me,

Many thanks

Bob

[HIDDEN]

Bob...you explained it very well and I should shut-up as I'm not familiar with the form.
However...
I am from UK but reside and became a Canadian Citizen and still I'm asked to make declarations to UK as to my pensions etc. from there...so I'm a little familiar with their question technique and find it best to minimize information.
I declared myself Non-Resident UK when I went to work in Hong Kong in 1974 and never returned to reside in UK.
I've not even visited UK since 1990 and they still hound me.

To your question "Do you receive any special benefits in your country of residence which mean that you pay no tax there.?'

If Malaysia was my country of Residence and I was Non-Resident UK...my answer would be NO....because I would be liable for tax on income earned within Malaysia. For example, say you earned a pension from the Malaysian Government and it was taxable, the answer would still be NO.

If there was income generated from Malaysia that, for some reason was not taxed, then the answer might be different.

There are some people...Embassy Staff; UN Representatives; Charity/Church Staff, for example, who might come under the category of the question and this may just be a general question.

The fact that Malaysia does not tax on other sourced income is agreed, a great benefit, but that was not the question.

If unhelpful, I will stop...promise.

David

 

[HIDDEN]

I have managed to submit the completed DT form and am now enjoying my UK company pension paid to my sterling offshore account tax free. In regards to the benefits question, you should answer NO.
I went to my local (Seremban) tax office and registered for a income tax number as this is also required for the form just above your signature. By the way you do not need to tick any boxes in the declaration/signature section of the DT form.
You may have some hassle convincing the tax office here to give you an income tax number if you are not employed but it is possible. Then along with providing them with copies of my passport and MM2H visa, I had to prove that I was resident here for at least six months by showing them the arrival and departure stamps in my passport. They then stamped and signed the form for me to send to HMRC. Four months later I got my PAYE coding notice with "NT"

[HIDDEN]

Hi Albert & Mano,

Thats very useful, my first step is then to approach the Tax office here in Penang and get the income tax number.

On your advice I will answer the special benefits question as No, I did read this as a Yes because of the zero rating of my offshore income here in Malaysia but as it worked for you thats good enough for me.

All the rest seems straightforward and I see no problem there.

Thanks also to Davita, I think you still misunderstood my point but it was good of you to reply.

Regards

Bob

[HIDDEN]

Just found this forum thread. I applied for DT a few years ago as I have a UK private pension. On the form I said NO to the "special benefits" becuase the zero tax rating on offshore income actually applies to all residents of Malaysia and not specifically to MM2H people. Originally it was set up to encourage foreign companies to set up their regional offices here. All of our employees (foreign and local) were entitled to offset the tax on the time that they were required to work overseas. Always remember that it is zero rated and not tax exempt - what goes down can go up.

Apart from the usual trauma of dealing with the Revenue the exercise was fairly straight forward, it just took a few months for UK Revenue to complete the process.