Death and Taxes

You know that they say there are only two things in life that are certain: death and taxes. Well that is entirely incorrect; there are lots of things in life that are certain. Like it’ll rain after you’ve washed your car for the first time in three months, that call you’ve been waiting for will come as soon as you go to the loo, your best friend will pop in for a quick visit during your favourite TV programme, your dog will jump muddy paw prints on your clean pants, you will spill coffee on your white shirt, you will fart at yoga, you will snort when you laugh on a first date, you will trip on the pavement in front of a motorcycle gang, the list does go on but that is a point well proven.

Let us pick the worst on that list and expound on it. Farting at yoga. Ok, that’s a joke, it’s embarrassing but not the worst, neither is snorting on your first date although that wouldn’t exactly be an action of choice either. Taxes, they’re the real killer; two certainties for the price of one, you probably wouldn’t get a rebate on death though, you’d have to pay for it somehow. Its not enough that we pay tax every day on everything that we buy and use. From things that really shouldn’t be taxed like books and vegetables and bread to things that maybe we shouldn’t mind paying tax on like alcohol and tobacco and DVDs. Yet every year we still have to fork over a large percentage of our earnings, our earnings, to the government so that they can do, whatever it is that they say they do. This is, however, not a tirade against tax, this merely about tax.

More specifically about paying taxes if you live in one country and work in another. There is this perception that if you work for less than 183 days in another country you are a tax non-resident, which means that you don’t pay tax in that country. This is largely a false perception as you have to meet certain other criteria as well and even if you do meet all the criteria you should still be paying tax on the income that you earn in that country. The laws are quite complex. It is strongly recommended that you hire a tax consultant who knows exactly what is going and keeps up to date with the rules and regulations governing international tax law as well as the tax laws of the countries concerned. If you work over 185 days in a country you are considered to be a tax resident and you can then be taxed on your total income, this includes investments etc.

You need to be careful about paying double tax i.e. in your home country and the country where you are earning money. Some countries have a double taxation avoidance treaty and this is good news for you. If the country that you’re in doesn’t have a double taxation treaty, it could mean bad news for you. Again, this is why you need a taxation consultant, someone who knows all the ins and outs of tax law and who can explain it all to you in terms that you will understand and who might be able to find some loopholes for you. Not that we’re advocating you cheat on your taxes, just that if there is some way that makes it easier on you payment wise, then go for it.

Taxation consultants do more than just help you with laws and loopholes. They take on all the paperwork and administration involved in taxes (and goodness knows there are a lot of forms) so that you are free to focus on your business or carry on with your private life with the minimum of stress and hassle. They provide a single point of contact thus reducing costs and allowing you to easily keep in contact and track progress. They provide reliable information quickly and efficiently. They assess you situation and tailor make a solution to fit your needs. You are assured of confidentiality and costs are all inclusive.

Taxes are daunting at the best of times, but there never is a “best of times” for tax. Most face them and dread the worst. Some may even prefer to face death as the friendlier and warmer certainty, the cuddlier option. Unfortunately it is not to be avoided. The best we can do is face it well armed with grit, determination, a sense of humour and a supreme tax consultant by our side.

Sandra wrote this article for the online marketers Capital Tax Consulting offshore tax advice one of the most professional taxation consultation companies in the UK