Double Taxation Agreements, Tax Information Exchange Agreements and Social Security Treaties
Double taxation treaties
Double taxation treaties are agreements between two states which are designed to
- Protect against the risk of double taxation where the same income is taxable in two states
- Provide certainty of treatment for cross-border trade
- Prevent tax discrimination against UK business interests abroad.
Double taxation treaties are also drawn up to protect the UK government's taxing rights and protect against attempts to avoid or evade UK liability. They also contain provisions for the exchange of information between the taxation authorities of states.
There are more than 1,300 double taxation treaties world-wide and the UK has the largest network of treaties, covering over 100 countries. The UK seeks to encourage and maintain an international consensus on cross-border economic activity and to promote international trade. To this end the UK plays an important role in the Organisation for Economic Co-operation and Development (OECD). More information on the work of the OECD in this area is available on the OECD website (new window).
Copies of double taxation conventions published from 1997 onwards can be found on the Web site of the Office of Public Sector Information (new window).
Double Contribution treaties
Double Contribution Conventions (DCCs) promote the free movement of labour and assist in maintaining the UK's position as an attractive inward investment location. Among other things, DCCs provide that, where a worker is sent on detachment from one country to the other, he and his employer are liable to contribute only to the 'home' country's scheme - thus eliminating the liability to contribute simultaneously to the social security schemes of both countries. At the moment the UK has 2 DCCs with the possibility of others to follow.
The UK also has 14 bilateral social security conventions in force which include such contribution provisions which broadly speaking eliminate the liability to contribute simultaneously to the social security schemes of both countries. In addition, within the European Economic Area, EU regulations ensure that workers posted to or from the UK are protected from simultaneous liability for contributions in both countries.
More information can be found in the National Insurance Manual - M33015.
Where to get hold of a copy of a tax treaty, a social security agreement or the European Regulations?
Recent agreements are available from The Stationery Office Ltd (TSO), or on the Office of Public Sector Information (new window)
When ordering you may need to quote the Statutory Instrument (SI) Number of the treaty or protocol, which can be found under the list of treaties - see links above.
Alternatively most large public libraries should have bound volumes of the UK treaties.
