Originally Posted by
tonker
If you do 14/14 and live say in the UK, you’ll be liable to therefore pay tax on your earnings surely?
Originally Posted by
flyTheBigFatLady
means you are exclude from pay tax at home, but only if you can proof that your center of living is not in the uk - meaning you have to be away for a min of 187 days a year.
moat European countries have this exception in their double taxation agreements of you own a property and generate an income from it this exception is not applicable.
some states depend the application on your registration status, meaning if rent a place and live their with your family this counts as center of living and therefore you are taxable Independent of how many days you are abroad.
Very sensible topic, can end bad very quickly - tax wise
FlightDetent, Tonker, & flyTheBigFatLady,
Depending on what is actually written in the relevant DTA between the UK & KSA will dictate where and in which fiscal jurisdiction income tax is liable on the specific class, or category, of income.
In this case the UK/KSA DTA 2009 will apply, specifically Article 15, Paragraphs (3), where the relevant Article and associated paragraph clearly stipulates which fiscal jurisdiction has the right to tax the specific type and categories of income earned. Assuming a flight crew job with RIA comes with an Iqama (KSA Residents Permit), which it will, then in the particular case of working for RIA on a 14/14 roster that would mean the fiscal jurisdiction that has tue right to tax that salary income, according to the relevant DTA, would be KSA. As the income tax rate in KSA is negligible that will mean very little income tax will be paid. Because the relevant DTA stipulates which fiscal jurisdictions has the right to tax that specific class of income, which will be KSA, then the UK does not have the right to tax that income.
In plain English. You won’t pay income tax on income earned as a pilot working for RIA, firstly because the DTA stipulates that KSA has the right to tax that income and not the UK and secondly because the personal income tax rate in KSA is ZERO that means you will effectively NOT be taxed on that income-all perfectly legal.