INTM620730 - Offshore Receipts in respect of Intangible Property (ORIP): Glossary of terms: Meaning of full treaty territory

ITTOIA05/Ch2A/S608E

A “full treaty territory” is a territory with which the UK has a full double taxation agreement that contains a relevant non-discrimination article. A relevant non-discrimination article provides that the nationals of each contracting state are not subject to unfavourable tax treatment in comparison with nationals of the other contracting state.

A “national” in relation to a contracting state includes an individual possessing nationality, or citizenship, of the contracting state as well as a legal person, partnership or association deriving its residence status from the laws of the contracting state.

Examples of some territories with which the UK has a double taxation agreement but which do not contain a relevant non-discrimination article include the UK’s double taxation agreements with the Crown Dependencies, some British Overseas Territories, and some other territories such as Hong Kong and Saudi Arabia.

A list of territories with which the UK had a full tax treaty as of October 2019 can be found below.  This list may change if the UK enters into new double taxation agreements or amends existing double taxation agreements. 

Albania	Lithuania
Algeria	Luxembourg
Argentina	Macedonia
Armenia	Malaysia
Australia	Malta
Austria	Mauritius
Azerbaijan	Mexico
Bahrain	Moldova
Bangladesh	Mongolia
Barbados	Montenegro
Belarus	Morocco
Belgium	Namibia
Bolivia	Netherlands
Bosnia-Herzegovina	New Zealand
Botswana	Nigeria
Bulgaria	Norway
Burma/Myanmar	Oman
Canada	Pakistan
Chile	Panama
China	Papua New Guinea
Croatia	Philippines
Cyprus	Poland
Czech Republic	Portugal
Denmark	Qatar
Egypt	Romania
Estonia	Russia
Ethiopia	Senegal
Fiji	Serbia
Finland	Singapore
France	Slovak Republic
Gambia	Slovenia
Georgia	South Africa
Germany	South Korea
Ghana	Spain
Greece	Sri Lanka
Guyana	Sudan
Hungary	Swaziland
Iceland	Sweden
India	Switzerland
Indonesia	Taiwan
Ireland	Tajikistan
Israel	Thailand
Italy	Trinidad and Tobago
Ivory Coast	Tunisia
Jamaica	Turkey
Japan	Turkmenistan
Jordan	Uganda
Kazakhstan	Ukraine
Kenya	United Arab Emirates
Kosovo	Uruguay
Kuwait	USA
Latvia	Uzbekistan
Lesotho	Venezuela
Libya	Vietnam
Liechtenstein	Zambia
	Zimbabwe

Example 1

The double taxation agreement between the UK and Switzerland contains a relevant non-discrimination provision. For the purposes of this chapter, Switzerland will be classed as a full treaty territory and the charge will not apply to persons resident there.

Example 2

The double taxation agreement between the UK and the Isle of Man does not contain a relevant non-discrimination provision. For the purposes Chapter 2A, residents may come within the charge however treaty relief may be available subject to a valid claim.

Example 3

The double taxation agreement between the UK and Gibraltar has effect from 6 April 2020 in respect of income tax. It does not contain a relevant non-discrimination provision. For the purposes of Chapter 2A, residents are within scope on amounts arising to 5 April 2020. Treaty relief may be available from 6 April 2020 subject to a valid claim.