The United Kingdom and Greece have a double taxation agreement, also known as a tax treaty. This agreement helps prevent individuals and companies from being taxed twice on the same income in both countries.
The agreement was signed in Athens on 8 December 1952 and entered into force on 29 October 1953. It has since been amended multiple times, with the most recent amendment signed on 23 October 2018, which came into force on 1 January 2020.
The agreement defines the tax residency of individuals and companies, as well as the types of income that are taxable in each country. It also sets out the rules for how foreign taxes can be credited against domestic taxes and provides for the exchange of information between the tax authorities of both countries.
Under the terms of the agreement, the UK and Greece agree to grant relief from double taxation in the following scenarios:
1. Income from dividends: If a UK resident receives dividends from a Greek company, the UK will tax the income first. However, the Greek government will also tax the income but will give credit for the UK tax paid.
2. Income from interest: If a UK resident receives interest from a Greek bank, the UK will tax the income first. However, the Greek government will also tax the income but will give credit for the UK tax paid.
3. Income from royalties: If a UK resident receives royalties from Greek sources, the Greek government will tax the income first. However, the UK will also tax the income, but will give credit for the Greek tax paid.
This agreement is very beneficial for businesses and individuals who operate in both the UK and Greece. Without the agreement, it would be very easy to be taxed twice on the same income in both countries, which would be unfair.
In conclusion, the UK and Greece have a double taxation agreement that provides relief from double taxation. This agreement is beneficial for individuals and companies who operate in both countries, and it ensures that they are not taxed twice on the same income.