Pension sorted, deduction made.

What is it like to live in Luxor? Share your experiences of Luxor's culture.

Moderators: DJKeefy, 4u Network

Egyptian God
Egyptian God
Posts: 7453
Joined: Thu Oct 17, 2013 11:49 am
Has thanked: 2102 times
Been thanked: 6238 times

Re: Pension sorted, deduction made.

Post by newcastle »

Yildez wrote:
newcastle wrote:@ Duaak

As you appear to be tax resident in Egypt, but not in UK, you could claim treatment under the UK/Egypt Double Tax treaty.

This provides that the UK pension of an individual resident in Egypt is taxable only in Egypt, and so can be paid without deduction of UK tax.

Unfortunately, whilst pensions of Egyptian tax residents are generally exempt from Egyptian tax, this does not apply to the pension of expats. Accordingly, although you'll be exempt from UK tax on your State, and private, pensions you would be liable to Egyptian tax....which is more than the tax payable in UK.

Not only that, you'd have to deal with the full gamut of Egyptian tax bureaucracy.....a daunting prospect.

I suspect most UK expats in Egypt are happy to continue paying UK tax on their UK pensions and do not claim to be tax resident in Egypt (even though, technically, they are).

A good reason for living in Turkey!! The UK has a Dual Tax Agreement with Turkey, which allows for British residents to choose where they pay tax. As the majority of pensions are tax free in Turkey ( until you get into extreme levels of income ) it's a great option. I have both State and private pensions and pay no tax at all! It took a year to sort it out with the UK tax office, who kept losing my documents :urm: , but it was certainly worth the effort!
As you say, under the UK/Turkey DTA, your UK state pension is exempt from tax.

Other UK pensions....well, I'll take your word for it that the system is generous. I know it is for Turkish source pensions.

  • Similar Topics
    Last post
  • 'You sorted ?
    by Who2 » Sun Jun 16, 2019 11:20 am » in Music - Movies - Entertainment
    1 Replies
    Last post by BBLUX
    Sun Jun 16, 2019 12:40 pm
  • Claiming State Pension
    by AladdinSane » Wed Jul 18, 2018 3:12 pm » in Living in Luxor
    22 Replies
    Last post by Major Thom
    Wed Jul 25, 2018 4:12 am
  • Bread like your Mum made...
    by Who2 » Thu Oct 10, 2019 10:26 am » in Kitchen Corner
    1 Replies
    Last post by Who2
    Fri Jan 17, 2020 10:48 am
  • It just made me laugh!
    by dsaxelby » Sun Jan 19, 2014 6:56 pm » in Just 4 Fun
    5 Replies
    Last post by LovelyLadyLux
    Mon Jan 20, 2014 1:47 am
  • Made for ACE Fubdraising Fete
    by Helen 123 » Sat Oct 06, 2018 6:25 pm » in General Discussions and Rants
    0 Replies
    Last post by Helen 123
    Sat Oct 06, 2018 6:25 pm