Do I need to pay taxes to UK and foreign country both?

randd

Hi,

Do I need to pay any taxes in foreign country because I was working from there for a UK employer and income? If the answer is yes then do I need to pay double taxes to each country OR do I need to pay to the other government and claim back full amount of income tax, national insurance from the UK govt.? 

Please help, any guidance will be a great help. I have tried to call the HMRC number but no one answers the call. 

macman

This may help: I'm not ploughing through that myself, but there is obviously a tax treaty in place, since 1993.

https://www.gov.uk/government/publications/india-tax-treaties

Jeremy535897

You should be able to get advice in India as to whether you have become resident in India for tax purposes, and what, if any, liability arises in India under India's domestic law. You also need to look at the UK residence and liability rules. See https://www.gov.uk/government/publications/residence-domicile-and-remittance-basis-rules-uk-tax-liability/guidance-note-for-residence-domicile-and-the-remittance-basis-rdr1

Then you look at Articles 4 (residence) and 16 (employment income) to see which country can tax your income. If both countries can tax it, one will give credit for the other's tax (so you end up paying tax equal to the higher rate of the two.