Certificate of Fiscal Residence - Completing form for freelancing in UK
Thread poster: Lara Barnett
Lara Barnett
Lara Barnett  Identity Verified
United Kingdom
Local time: 19:50
Member (2011)
French to English
+ ...
Jul 14, 2015

I have a client in Portugal asking for a Certificate of Fiscal Residence in order to receive work from them. I have found the relevant online application form on the HMRC website and some of the questions seem a bit irrelevant, and at times unanswerable, in the light of general freelance earnings. I do not know what to enter in some of the boxes and HMRC is impossible to get through to. My main issues are with the two questions:

"Please enter below the Article of the countries
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I have a client in Portugal asking for a Certificate of Fiscal Residence in order to receive work from them. I have found the relevant online application form on the HMRC website and some of the questions seem a bit irrelevant, and at times unanswerable, in the light of general freelance earnings. I do not know what to enter in some of the boxes and HMRC is impossible to get through to. My main issues are with the two questions:

"Please enter below the Article of the countries Double Taxation Agreement (DTA) under which your request regarding this income is being made."

"Do the Subject To Tax provisions apply to this foreign income?"

Has anybody in UK done this form? Or does anybody know what a freelance (sole trader) should enter here?
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Tom in London
Tom in London
United Kingdom
Local time: 19:50
Member (2008)
Italian to English
Unnecessary Jul 14, 2015

I've never been asked for one of these and I don't believe they're even necessary.

 
Natalie Soper
Natalie Soper  Identity Verified
United Kingdom
Local time: 19:50
French to English
+ ...
A couple of times Jul 14, 2015

I've had to fill out these forms in my previous job. Although it was for the company and not for myself, they're still a huge palaver!

In my case the client sent me their Portuguese form to fill out, and it came with a sheet explaining what should be in each section. Could the client send you one perhaps? :/


 
Rebecca Hendry
Rebecca Hendry  Identity Verified
United Kingdom
Local time: 19:50
Member (2005)
Spanish to English
+ ...
Yes, for Spain Jul 14, 2015

Hi Lara,

Some of my Spanish clients request this. The first time I filled out the form I left the answer to the first question you mention blank or put N/A as I didn't know what to put. When I received the certificate it came with a letter explaining which article I should put for future reference. It said:

"When requesting this certificate you did not correctly complete the box for the relevant article of the Double Taxation Agreement under which you are claiming relie
... See more
Hi Lara,

Some of my Spanish clients request this. The first time I filled out the form I left the answer to the first question you mention blank or put N/A as I didn't know what to put. When I received the certificate it came with a letter explaining which article I should put for future reference. It said:

"When requesting this certificate you did not correctly complete the box for the relevant article of the Double Taxation Agreement under which you are claiming relief on your self-employment income. This is Article number 14 - Independent Personal Services. For future requests will you please refer to the Double Taxation Agreement for the foreign country (http://www.hmrc.gov.uk/taxtreaties/in-force/) and confirm the Income Article under which you wish to make a claim. Incorrect or incomplete information entered on a request will delay issue of a certificate whilst the incorrect information is obtained from you."

OK, but I'm not sure how I was meant to figure that out by myself! I'm not sure if it helps you for Portugal but at least you know that if you leave it blank you'll still get the certificate.

I'm afraid I can't remember what I put for the second question, but whatever it was it was probably a guess!

Good luck and best wishes,

Rebecca.
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Rosa Plana Castillón
 
Tom in London
Tom in London
United Kingdom
Local time: 19:50
Member (2008)
Italian to English
Not foreign income Jul 14, 2015

LaraBarnett wrote:

I have a client in Portugal asking for a Certificate of Fiscal Residence in order to receive work from them. I have found the relevant online application form on the HMRC website and some of the questions seem a bit irrelevant, and at times unanswerable, in the light of general freelance earnings. I do not know what to enter in some of the boxes and HMRC is impossible to get through to. My main issues are with the two questions:

"Please enter below the Article of the countries Double Taxation Agreement (DTA) under which your request regarding this income is being made."

"Do the Subject To Tax provisions apply to this foreign income?"

Has anybody in UK done this form? Or does anybody know what a freelance (sole trader) should enter here?


The thing is that the income you earn in the UK, where you are resident for tax purposes, is NOT Foreign Income and the Double Taxation Agreement does not apply. It would if you were running your business from outside the UK. If you're not sure, consult an accountant. For the official definition of Foreign Income, see here:

http://www.hmrc.gov.uk/manuals/tctmanual/tctm04007.htm


 
Charlie Bavington
Charlie Bavington  Identity Verified
Local time: 19:50
French to English
Double taxation Jul 14, 2015

Tom in London wrote:

LaraBarnett wrote:

I have a client in Portugal asking for a Certificate of Fiscal Residence in order to receive work from them.


the Double Taxation Agreement does not apply.


Double taxation agreements apply whenever there is the risk that you, er, might be taxed twice.

The swiftest of swift googling suggests Portugal applies a withholding tax. If Portugal deducts a tax and then HMRC deducts a tax on what's left, that is double taxation, and provisions exist to lessen the burden on the hard-pressed taxpayer.

Towards the end of this page http://www.pwc.pt/en/guia-fiscal/2014/irc/dispensa-retencao-fonte.jhtml it is strongly implied that Lara does indeed need to complete this formality as requested by her client (income from providing services, non resident entity).

The list of Portuguese taxes covered by the treaty is at the start of the this:
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/412602/uk-portugal-dta.pdf

If the tax they are planning to otherwise deduct is listed in Article 2, I would answer "yes" to the second question. (Otherwise, what is the point of applying for the certificate?)
(Always with the proviso that a little knowledge can be a dangerous thing; if I were in your shoes, the above would represent my starting position - obviously you should seek confirmation from an expert source.)

[Edited at 2015-07-14 15:29 GMT]


 
Lara Barnett
Lara Barnett  Identity Verified
United Kingdom
Local time: 19:50
Member (2011)
French to English
+ ...
TOPIC STARTER
Thank you Jul 14, 2015

Thanks to you all for your help. I have used everybody's information and sent the form off now. I can only wait and see what happens next.

 
Chloe Miller
Chloe Miller
United Kingdom
Local time: 19:50
French to English
+ ...
answer to question re-Spain Aug 17, 2018

If anyone is filling in this form, I recommend you call the HMRC number and ask them what you should put. I just called up for Spain and they gave me the following answers for taxable income from a Spanish company, if based in the UK:


Application for fiscal residence certificate for the UK- UK/Spain agreement.

If anyone is asked for this and is confused about the following questions if you earn money with a Spanish company and wish to pay tax in the UK. I just ca
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If anyone is filling in this form, I recommend you call the HMRC number and ask them what you should put. I just called up for Spain and they gave me the following answers for taxable income from a Spanish company, if based in the UK:


Application for fiscal residence certificate for the UK- UK/Spain agreement.

If anyone is asked for this and is confused about the following questions if you earn money with a Spanish company and wish to pay tax in the UK. I just called up HMRC and they gave me the following answers to the questions on the form below:

Which article of the country's Double Taxation Agreement covers the income in this request? -22
Do the subject to tax provisions apply to this foreign income? -(ie: would you be liable to pay tax in Spain for this income): YES.

Hope this helps if anyone is in a similar situation
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Patrick Hideo Kirby
Patrick Hideo Kirby  Identity Verified
United Kingdom
Local time: 19:50
Member (2016)
Japanese to English
+ ...
Alternative proof of residence for tax purposes Jun 12, 2020

Just for reference on this point, I had a similar situation with a Spanish company requesting a certificate of residence (I am in the UK).

Since the HMRC Certificate of Residence seems mainly applicable as a proof in relation to income already received (as opposed to potential future income), this company was happy to accept an alternative form of proof of tax residency (e.g. a self assessment statement with personal information blacked out).
This was easier to provide than a
... See more
Just for reference on this point, I had a similar situation with a Spanish company requesting a certificate of residence (I am in the UK).

Since the HMRC Certificate of Residence seems mainly applicable as a proof in relation to income already received (as opposed to potential future income), this company was happy to accept an alternative form of proof of tax residency (e.g. a self assessment statement with personal information blacked out).
This was easier to provide than applying for a certificate from HMRC.

[Edited at 2020-06-12 10:45 GMT]
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Tom in London
Tom in London
United Kingdom
Local time: 19:50
Member (2008)
Italian to English
Spain Jun 12, 2020

I have worked with various Spanish clients and they have never asked me for a certificate of tax residence. I suspect this may be all about individual accountants in Spain (or Portugal), and how they interpret things. Or could it be one of the many consequences of Brexit?

[Edited at 2020-06-12 10:45 GMT]


 
expressisverbis
expressisverbis
Portugal
Local time: 19:50
Member (2015)
English to Portuguese
+ ...
The "Certificado de Residência Fiscal" Jun 12, 2020

is a document that serves to prove to foreign entities your residence for tax purposes.
This certificate is important for you to be able to benefit from a withholding tax exemption or reduction of any kind of tax on your income from abroad.
It is also important for making claims for tax refunds withheld from abroad and for avoiding double taxation.
I have found a Certificate of Fiscal Residence requested by one of my former clients, and it says the following regarding that art
... See more
is a document that serves to prove to foreign entities your residence for tax purposes.
This certificate is important for you to be able to benefit from a withholding tax exemption or reduction of any kind of tax on your income from abroad.
It is also important for making claims for tax refunds withheld from abroad and for avoiding double taxation.
I have found a Certificate of Fiscal Residence requested by one of my former clients, and it says the following regarding that article:
"... on the terms of the article nr. 4th of the Double Taxation Convention between PORTUGAL and (name of the other country)"
Please check "Article 4 - Residence". I believe it can guide you in this question and others:
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/500344/uk-portugal-dta_-_in_force.pdf

PS: Consult your accountant. He or she can request the document for you and fill it, and explain to you what you need to enter.



[Edited at 2020-06-12 17:44 GMT]
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Reece Anderson
Reece Anderson  Identity Verified
United Kingdom
Local time: 19:50
Spanish to English
+ ...
Brexit making these more necessary Jul 1, 2021

I've just been asked by one of my clients in Spain to provide this certificate too. They told me that since the UK isn't part of the EU anymore they need to keep 19-21% of the invoice total, unless I provide the certificate. But then just the other day I received a payment from a client in Italy who didn't ask for anything like that, so I'm confused. I can't send them anything from my self-assessment since I haven't filled out my first one yet. Maybe if I give them my UTR in the meantime while I... See more
I've just been asked by one of my clients in Spain to provide this certificate too. They told me that since the UK isn't part of the EU anymore they need to keep 19-21% of the invoice total, unless I provide the certificate. But then just the other day I received a payment from a client in Italy who didn't ask for anything like that, so I'm confused. I can't send them anything from my self-assessment since I haven't filled out my first one yet. Maybe if I give them my UTR in the meantime while I wait for my certificate?Collapse


 


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Certificate of Fiscal Residence - Completing form for freelancing in UK






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