INTM620730 - Offshore Receipts in respect of Intangible Property (ORIP): Glossary of terms: Meaning of full treaty territory
ITTOIA05/Ch2A/S608E
A “full treaty territory” is a territory with which the UK has a full double taxation agreement that contains a relevant non-discrimination article. A relevant non-discrimination article provides that the nationals of each contracting state are not subject to unfavourable tax treatment in comparison with nationals of the other contracting state.
A “national” in relation to a contracting state includes an individual possessing nationality, or citizenship, of the contracting state as well as a legal person, partnership or association deriving its residence status from the laws of the contracting state.
Examples of some territories with which the UK has a double taxation agreement but which do not contain a relevant non-discrimination article include the UK’s double taxation agreements with the Crown Dependencies, some British Overseas Territories, and some other territories such as Hong Kong and Saudi Arabia.
A list of territories with which the UK had a full tax treaty as of October 2019 can be found below. This list may change if the UK enters into new double taxation agreements or amends existing double taxation agreements.
| Albania | Lithuania |
|---|---|
| Algeria | Luxembourg |
| Argentina | Macedonia |
| Armenia | Malaysia |
| Australia | Malta |
| Austria | Mauritius |
| Azerbaijan | Mexico |
| Bahrain | Moldova |
| Bangladesh | Mongolia |
| Barbados | Montenegro |
| Belarus | Morocco |
| Belgium | Namibia |
| Bolivia | Netherlands |
| Bosnia-Herzegovina | New Zealand |
| Botswana | Nigeria |
| Bulgaria | Norway |
| Burma/Myanmar | Oman |
| Canada | Pakistan |
| Chile | Panama |
| China | Papua New Guinea |
| Croatia | Philippines |
| Cyprus | Poland |
| Czech Republic | Portugal |
| Denmark | Qatar |
| Egypt | Romania |
| Estonia | Russia |
| Ethiopia | Senegal |
| Fiji | Serbia |
| Finland | Singapore |
| France | Slovak Republic |
| Gambia | Slovenia |
| Georgia | South Africa |
| Germany | South Korea |
| Ghana | Spain |
| Greece | Sri Lanka |
| Guyana | Sudan |
| Hungary | Swaziland |
| Iceland | Sweden |
| India | Switzerland |
| Indonesia | Taiwan |
| Ireland | Tajikistan |
| Israel | Thailand |
| Italy | Trinidad and Tobago |
| Ivory Coast | Tunisia |
| Jamaica | Turkey |
| Japan | Turkmenistan |
| Jordan | Uganda |
| Kazakhstan | Ukraine |
| Kenya | United Arab Emirates |
| Kosovo | Uruguay |
| Kuwait | USA |
| Latvia | Uzbekistan |
| Lesotho | Venezuela |
| Libya | Vietnam |
| Liechtenstein | Zambia |
| Zimbabwe |
Example 1
The double taxation agreement between the UK and Switzerland contains a relevant non-discrimination provision. For the purposes of this chapter, Switzerland will be classed as a full treaty territory and the charge will not apply to persons resident there.
Example 2
The double taxation agreement between the UK and the Isle of Man does not contain a relevant non-discrimination provision. For the purposes Chapter 2A, residents may come within the charge however treaty relief may be available subject to a valid claim.
Example 3
The double taxation agreement between the UK and Gibraltar has effect from 6 April 2020 in respect of income tax. It does not contain a relevant non-discrimination provision. For the purposes of Chapter 2A, residents are within scope on amounts arising to 5 April 2020. Treaty relief may be available from 6 April 2020 subject to a valid claim.