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Dividend from Middle East company

Dividend from Middle East company

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A client may invest in a company in the UAE.  Am I correct in thinking that if he owns less than 10% of the issued share capital, he is entitled to the 1/9 UK tax credit?  This is appealing if he receives a dividend of £900 with the 1/9 tax credit but not so much if the £900 is treated as the gross amount with no tax credit.

Cheers

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By KH
09th Jan 2014 15:10

short list of "disabled" countries for tax credit relief

You can have a larger percentage stake in a foreign company and still claim UK tax credit relief as long as the country has a double taxation agreement with the UK that includes a non-discrimination article ... those that don't, i.e. are on the disabled list, are places like Belize, Malawi, Isle of Man, Jersey, Guernsey, Grenada ... a small list that does not include any of the Gulf states apart from Brunei (assuming that my geography is correct in thinking that sounds like one of the oil-producing Gulf states) ... oh, and the company must not be an offshore fund.

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By Rammstein
09th Jan 2014 15:32

Thanks for your answer

KH,

Cheers for your reply.  Unfortunately, the UK does not have a DTA with the UAE so I think that the 10% ruling is the one I need to pass.

Regards

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By KH
09th Jan 2014 15:43

in which case, yes

HI

In which case, yes, as long as the company is not an offshore fund ... I didn't check to see which countries have DTAs in force.

Regards

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