Consider a UK company being owned by another European Ltd, say in Belgium or Cyprus. Is there any tax, called withholding tax, imposed on the money ( dividends , profits ) as it is being sent to the owning company ?
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Is there UK "withholding tax" ?
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Originally posted by supergal View PostConsider a UK company being owned by another European Ltd, say in Belgium or Cyprus. Is there any tax, called withholding tax, imposed on the money ( dividends , profits ) as it is being sent to the owning company ?
Try HMRC website."See, you think I give a tulip. Wrong. In fact, while you talk, I'm thinking; How can I give less of a tulip? That's why I look interested." -
Try here for starters, the DT for Belgium as it relates to Dividends.
Then try here for the application process for certain countries (including Belgium).
As I read it, the layman's answer is that all UKCo profits will have tax paid on them; the dividend for the distribution of taxpaid earnings will have a 1/9th tax credit (11.11%) attached; the Belgian holding company is only entitled to use half of that tax credit; the UK tax liability is 5% of the aggregate; BelgianCo can apply for the difference between half of that tax credit and the 5% tax back from HMRC.
In their example, BelgianCo receives a tax rebate of £2,777.78 on a dividend of £1m.
DTs and International Tax are very complex; it may be worth seeking the advice of a competent international tax accountant.Comment
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