do Russian residents pay UK tax on dividends

do Russian residents pay UK tax on dividends

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Hi 

Do Russian shareholders in a UK company pay UK income tax on dividends from the UK company they control? The Russian shareholders are also shareholders in a Russian company, which is the main customer of the UK company. I  have read the Double tax treay with Russia but very confusing. thanks.

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By Portia Nina Levin
13th Nov 2014 16:51

What has the double tax treaty got to do with it?

There needs to be double taxation before you need to look at a treaty, and dividends are disregarded income.

The real question is where is the company resident for tax purposes.

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Replying to mrme89:
By shogun
13th Nov 2014 16:54

hi

thank you. The company paying the dividends is UK regsitered and the recipient shareholders are non-UK residents. 

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By norstar
13th Nov 2014 17:29

No withholding tax in UK

UK dividends are paid net of 10% tax credit and without withholding tax as far as I am aware, (assuming the company is UK resident).

Assuming they're resident over there, the Russians would declare the income in Russia and dependent on the DTA, claim relief for the 10% tax credit, but that's rather a question for a Russian accountant I would say.

No UK dividend tax payable in the case above.

See here: https://www.accountingweb.co.uk/anyanswers/question/non-resident-receivi...

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