Originally Posted by
VAMY
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.
Are you a UK tax specialist?
Because I'm fairly sure this is not correct, if you meet the SRT test you will be liable to pay UK tax.