State Tax Administration Reaffirms No Double Taxation for Overseas Income
The State Tax Administration has stated definitively that double taxation on income earned abroad will not be implemented, citing existing regulatory constraints. Director of the Tax Department, Elena Petrovska, addressed concerns raised by students who claim they have already paid tax in their country of residence while participating in “Work and Travel” programs. Petrovska clarified that individuals in these situations, along with all citizens who have previously paid tax internationally, must provide documentation verifying that tax payment.
This documentation should then be submitted to the State Tax Administration for consideration as a tax credit. “There will be and cannot be double taxation on the income that citizens earn abroad,” Petrovska stated. “The current regulatory framework inherently prevents double taxation.” She emphasized that the process of accepting foreign tax payments as a credit is solely a matter of implementation.
The Administration stressed that the goal is to ensure clarity regarding existing tax obligations. Citizens are advised to retain records of all tax payments made abroad and to contact the State Tax Administration for guidance on submitting the necessary documentation to avoid any potential tax discrepancies.
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