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.
Replies (3)
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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.
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...