Adam Tweedie’s Post

Have you considered the compliance obligations placed on you and your employees when working in Norway?    If you haven’t then you might not know that UK residents are liable to Norwegian Income Tax from the first day of work offshore on the Norwegian Continental Shelf.     Before setting up in Norway it’s important to consider the compliance obligations that will be placed on you. Carol Sim explores the obligations to think about before operating in Norway in today’s article 👇

Are You a Seaman? I’ve been speaking with many contractors working in Norwegian waters this past week, and they all shared similar concerns: paying Norwegian taxes while being eligible for Seafarers’ Earnings Deduction (SED) and foreign tax credits. Here’s how it works: ### Seafarers’ Earnings Deduction and Norwegian Tax **1. Seafarers’ Earnings Deduction (SED):** - SED is available to UK tax residents, reducing taxable income from seafaring duties performed outside the UK. - This deduction impacts UK tax liability only, not foreign taxes. **2. Norwegian Tax Obligations:** - If you work in Norwegian waters, Norway may tax your income earned there. - Employers in Norway typically withhold tax on wages paid to foreign workers. ### Avoiding Double Taxation To prevent being taxed twice on the same income, the UK and Norway have a double taxation agreement (DTA). Here’s how it helps: **1. Claiming Foreign Tax Credit in the UK:** - If you pay Norwegian tax, you can often claim a foreign tax credit against your UK tax liability. - This credit reduces your UK tax by the amount of tax paid in Norway, but only up to the amount of UK tax due on that income. **2. Interaction with SED:** - SED reduces your UK taxable income, lowering your UK tax liability. - If SED reduces your UK tax liability to zero, you might not need to claim a foreign tax credit. - If any UK tax is still due after applying SED, you can use the foreign tax credit to offset the remaining UK tax liability. If you’re in a similar situation and want to check your Seafarers' Earnings Deduction status, send me a message, and we can have a quick chat.

🌟 Breaking News Alert: The North Sea tax regime has been described as complex as a 'war zone' by oil industry experts in the Financial Times. Navigating the intricate tax landscape in the region has been a major challenge for companies. This further underscores the need for a transparent and simplified tax framework to encourage investment and boost the industry's potential. Read more about this eye-opening revelation in the Financial Times. #NorthSea #OilIndustry #TaxRegime https://ift.tt/AGoEpyP

Treasury has released a Consultation Paper on the Federal Government’s proposal to amend Australia’s foreign resident capital tax regime. Among other changes, the main change that will impact many investing in Australian infrastructure and energy will be the broadening of the types of assets for which foreign residents will be subject to capital gains tax.

🔴 Breaking News: The North Sea tax regime is facing severe criticism as oil operators and industry groups express concerns over the complexity of the current system. A recent report by the Financial Times sheds light on the challenges faced by companies navigating through the intricate tax framework, likening it to a "war zone." This raises important questions about the impact of these complexities on investment and long-term prospects for the North Sea oil industry. The article calls for urgent reforms to simplify the tax regime and promote a more conducive environment for investment. It's crucial for policymakers and industry leaders to collaborate in addressing these issues and ensuring a sustainable future for the North Sea oil sector. #NorthSea #TaxRegime #FinancialTimes https://ift.tt/AGoEpyP

The effective Tax credit system in Iceland has been a key element in creating a competitive environment in Iceland to bring innovation to global markets. For me this is a key element from OECD's evaluation of the system: "The R&D tax credit in Iceland also appears to have had a positive impact on annual firm sales, employment and average wages." Government support for innovation in Iceland is investment for future prosperity. https://lnkd.in/eZFjsJRZ

With the end of the financial year fast approaching, it is time for fly-in, fly-out workers and miners in general to consider their taxes and H&R Block director of tax communication Mark Chapman has some tips. https://lnkd.in/gRSFpKcN

🚀 Pillar 1 (#AmountB) and Pillar 2 (#GloBE) latest developments: ❗ OECD has just released another important guidance for the application of the minimum tax rules and to further simplify the tax compliance. This latest issuance evidеnces once again for the intracate nature of the new regime and the challenges that the businesses are currently facing in that direction. #Bulgaria has still not incorporated the Administrative guidance provisons into the local legislation or made a direct reference to the latter. 📑 As advisors, we are closely monitoring the evolving landscape and stand ready to offer our support and navigate businesses and clients through these regulatory complexities. ❗ In addition to that, new supplementary elements relating to the report on #Amount B of Pillar One (mainly with respect to the definitions for "covered" and "qualifying" jurisdiction within the meaning of Section 5) have been published allowing jurisdictions to begin with implementation. Recalling from February 2024, a report on #Amount B was released, providing for a simplified and streamlined approach to the application of the arm's length principle to baseline marketing and distribution activities with focus on low-capacity countries (a list of which was agreed to be published by the end of May). It seems #Bulgaria falls within the list of "qualifying jurisdictions", however, what approach would be further taken remains unclear. #internationaltax #pillar1 #pillar2 #GloBE #EYBulgaria #Bulgaria #OECD #BEPS2.0 #tax #GloBE #minimumtax #AmountB #marketing #distribution #transferpricing