Accountant for NHR status
Jan 29th 2016, 3:21 pm
#16
Smokn Joy
Joined: Jan 2015
Location: Wonderful Portugal
Posts: 774
Re: Accountant for NHR status
yeah me too...whats does 'paid to' exactly mean....like our pension is 'paid to' an Irish account... ( ye gads what if the PT inspectors were to hang out secretly in this forum)
ANyway so the pension is TAXED in Ireland at xyz% then there are some 'credits' or lower taxation rates for 'part' of the taxable income...but it IS a hefty income tax in the end... So mePat thinks NHR would indeed be beneficial for us, as we'd pay lower tax on this income for the 10-years any way, yes?
ANyway so the pension is TAXED in Ireland at xyz% then there are some 'credits' or lower taxation rates for 'part' of the taxable income...but it IS a hefty income tax in the end... So mePat thinks NHR would indeed be beneficial for us, as we'd pay lower tax on this income for the 10-years any way, yes?
Jan 29th 2016, 5:38 pm
#17
BE Enthusiast
Joined: May 2014
Location: Burgau Portugal
Posts: 462
Re: Accountant for NHR status
The way I understand it., using completely made up figures.....
Say you get £10 000 pension from the UK (or Ireland) this is your Worldwide Income. It doesn't matter where it's being paid to.
Then you pay your tax in the UK (or Ireland), Ex-Goverment employes "have" to pay this in their home country, of say £100.
Then in Portugal because the tax bands are higher (you can look the real ones up) your tax bill there would be £120.
But because of double taxation treaties you'd pay the £100 in the UK (or Ireland) and then just the extra £20 in Portugal.
With NHR you would not have to pay this extra £20 for ten years.
If you aren't an ex-Goverment employee then apparently you can get your tax code changed in the UK so that you pay no tax there.
In theory so you would then pay the full £120 in Portugal, but then with the NHR you would in fact pay nothing.
But I've heard it's hard to convince the HMRC that you really are domicile in PT so you can to get this code.
So no matter what you benefit from NHR because the tax rates are higher in Portugal.
I think this is correct, someone please correct me if I am wrong!!!!
Say you get £10 000 pension from the UK (or Ireland) this is your Worldwide Income. It doesn't matter where it's being paid to.
Then you pay your tax in the UK (or Ireland), Ex-Goverment employes "have" to pay this in their home country, of say £100.
Then in Portugal because the tax bands are higher (you can look the real ones up) your tax bill there would be £120.
But because of double taxation treaties you'd pay the £100 in the UK (or Ireland) and then just the extra £20 in Portugal.
With NHR you would not have to pay this extra £20 for ten years.
If you aren't an ex-Goverment employee then apparently you can get your tax code changed in the UK so that you pay no tax there.
In theory so you would then pay the full £120 in Portugal, but then with the NHR you would in fact pay nothing.
But I've heard it's hard to convince the HMRC that you really are domicile in PT so you can to get this code.
So no matter what you benefit from NHR because the tax rates are higher in Portugal.
I think this is correct, someone please correct me if I am wrong!!!!
Jan 29th 2016, 7:14 pm
#18
Smokn Joy
Joined: Jan 2015
Location: Wonderful Portugal
Posts: 774
Re: Accountant for NHR status
cool I got it really clear. Thank you vety much!
Jan 29th 2016, 7:54 pm
#19
BE Forum Addict
Joined: Aug 2012
Location: Viana do Castelo
Posts: 1,385
Re: Accountant for NHR status
In short. On government pensions you pay tax in the UK or Ire. Not here at all if you have NHR status.
If you do not have NHR status then you will get a reduction of your PT tax with the amount you paid in the UK or Ire.
If you have a private pension fund and you have NHR status, then you will not pay tax anywhere. *
If no NHR status and receiving a private pension then you will only get taxed here at the PT rate due to the DTA.
* This is if you have provided the tax office in the UK or Ire with the "International Residency Certificate" available from the PT tax office. This will provide proof that you are registered for tax here and they will close your books.
If you do not have NHR status then you will get a reduction of your PT tax with the amount you paid in the UK or Ire.
If you have a private pension fund and you have NHR status, then you will not pay tax anywhere. *
If no NHR status and receiving a private pension then you will only get taxed here at the PT rate due to the DTA.
* This is if you have provided the tax office in the UK or Ire with the "International Residency Certificate" available from the PT tax office. This will provide proof that you are registered for tax here and they will close your books.
