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How do i reclaim witholding tax?

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Hi

I am unable to claim witholding tax on a tax return in respect of royalty income received in Japan and France. The DTA rates are 0% with the income only taxable in the UK.

How can i go directly to the Japanese and French authorities to get this tax back which was incorrectly withheld?  I've had a quick look but can't find anything obvious and the French embassy website talks about a form 5000 to prove residency and then fill out a form 5003 but this seems to be a form to put in place before the royalties are paid rather than for claiming a refund afterwards.    I cannot find anything at all for Japan..... can anyone help please?

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By graemeban123
21st Nov 2020 21:24

Your question doesn't really make sense.

Why do you think it has been incorrectly withheld? Do you/you're Company meet the requirements to be without the relevant countries rules relating to withholding tax? Since it's been deducted I assume not, there are various requirements for each country to be outside their rules in relation to withholding tax.

The income is taxable in the UK , you can offset the withheld tax under the appropriate tax agreements if appropriate.

If it is a substantial amount I would suggest appointing an account with knowledge of your circumstances.

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By Matrix
22nd Nov 2020 06:55

Your question makes sense to me.

The treaty rate is nil so you can’t get a foreign tax credit so you are trying to reclaim the tax withheld.

I assume the amounts are material or you wouldn’t be looking into it. I did a search and it looks as if there are firms who do this for you so I would price up your fees, get a quote from the experts and let the client decide.

I did one for another country last year, a lot to learn for one client, took hours, didn’t recover all my time and the claim was rejected due to some bureaucratic reason. Took 3 months for HMRC to even stamp the forms, would be 6 now probably. Manage client’s expectations and get a reclaim firm involved.

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