I have several clients, both personal and Trusts where witholding tax at 25% has been deducted at source from dividends paid by Royal Dutch Shell. As the witholding rate under the DTR treaty is 15%, how is the balance relieved. Is it repayable by the Netherland tax authorities or relievable against UK tax (assuming a 40% tax rate)in the tax return?
Ian McLaughlin
Related resources
Replies (3)
Please login or register to join the discussion.
Withholding tax refund
Yes you are correct, you can only claim 15% Dutch dividend tax credit on SA returns under the DTA - per the Tax Return Guide. To reclaim the difference for a UK resident individual/Trust you should complete form "IB92 GRB" and send to the clients Tax District - your client will eventually receive a refund from the Dutch tax authorities. Phone the International Centre (previously FICO) for a supply of the forms - 0845 070 0040
DTR - but...
Assuming that the clients are UK resident the relief is Double Tax Relief against the UK liability, but the relief may be limited by an assumption that all claims to relief that could be made, have been made.
Presumably your clients could file the necessary papers with the authorities to secure the reduction to a 15% WHT and should do so, as the revenue may not give credit for the excess.
Manninen?
How does the judgement in the Manninen case interract with this?
Please see an (unresolved) earlier post
https://www.accountingweb.co.uk/cgi-bin/item.cgi?id=134489&d=101&dateformat=%o-%B
Any thoughts Paul