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  • Michael Clarke

Brexit and EU Taxpayers


Please do be aware of the rules before posting UK employees to other countries in Europe for short or even longer term assignments, if not organised correctly beforehand it’s very easy to fall foul of local applicable rules which can then take years in some cases to unwind.

EU citizens buying, investing, working, or moving often between borders will be expected to pay taxes and make tax declarations in two or more countries.

This will typically occur with people living in one country but working in another and workers on secondment in a country they are not ordinarily resident in.

Each EU country can impose their own tax rules and this is for any tax as opposed to just income tax. However, where an EU citizen suffers discriminatory tax treatment, there are remedies under EU law. In the case of other cross-border tax problems such as double taxation and double compliance costs, there are no binding remedies.

The European Commission have stated that EU citizens who exercise their right to move freely within the EU should not be penalised by facing these problems and is working in different ways to try to resolve these problems.

Finally, EU citizens should be aware that EU countries exchange information to ensure that taxpayers meet their tax obligations and that EU countries assist each other with recovery of taxes due.

The EU information exchange and assistance arrangements of most concern to individuals are those under the Savings Directive the Administrative Cooperation Directive and the Directive on mutual assistance for the recovery of taxes


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