UK To Update Tax Treaties With Poland And Hungary

by Jason Gorringe, Tax-News.com, London

09 March 2004

The Inland Revenue anonunced last week that discussions at official level are to be held shortly about a new comprehensive Double Taxation Conventions between the UK and Poland, and between the UK and Hungary.

In the case of the UK/Poland convention, the new agreement will replace an existing double taxation framework dating back to 1976, whilst the new agreement with Hungary replaces a treaty signed in 1977.

Double Taxation Conventions aim to eliminate the double taxation of income or gains arising in one State and paid to residents of another State. They do this by dividing the taxing rights that each treaty partner has under its domestic law over the same income and gains.

Tax Treaties also serve an Exchequer protection role by including provisions to combat avoidance and evasion - not least by measures providing for the exchange of information between Revenue authorities.

There are more than 1,300 Double Taxation Conventions world-wide - the UK has one of the largest networks covering more than 100 countries.

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