The Double Taxation Relief and International Tax Enforcement (Ecuador) Order 2024
Legislation date: 2024-12-19 10:00
Summary:
The Double Taxation Relief and International Tax Enforcement (Ecuador) Order 2024 is a statutory instrument made under the Taxes Acts, which implements the Double Taxation Convention between the UK and Ecuador, signed on 27 October 2022.
Key provisions:
- The Convention provides for relief from double taxation by:
- Allowing the UK to credit against its own tax the tax paid in Ecuador on the same income.
- Exempting in the UK certain Ecuadorian-sourced income, such as dividends and interest.
- The Convention also contains provisions to prevent tax evasion and promote international tax compliance, including:
- Exchange of information between the UK and Ecuador tax authorities.
- Mutual assistance in the collection of taxes.
- The Order brings the Convention into force in the UK from 6 April 2025.
Background:
Double taxation occurs when the same income is taxed in both the UK and another country. Double taxation relief is designed to prevent this by providing relief from the tax paid in the other country.
Tax treaties are agreements between countries that provide for relief from double taxation and promote international tax compliance. The UK has a network of over 100 double taxation treaties with other countries.
Implications:
The Double Taxation Relief and International Tax Enforcement (Ecuador) Order 2024 will benefit businesses and individuals with income from both the UK and Ecuador by reducing their tax liability and eliminating the risk of double taxation. The Order will also improve tax compliance and cooperation between the UK and Ecuador.
The Double Taxation Relief and International Tax Enforcement (Ecuador) Order 2024
The AI has provided us with the news.
I’ve asked Google Gemini the following question, and here’s its response.
UK New Legislation a new article on 2024-12-19 10:00 titled “The Double Taxation Relief and International Tax Enforcement (Ecuador) Order 2024”. Please write a detailed article on this news item, including any relevant information. Answers should be in English.
93