Global

Details

  • Service: Tax, International Corporate Tax, Global Indirect Tax, Global Transfer Pricing Services, International Executive Services, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 3/22/2013

United Kingdom - Income tax treaties signed with Norway, Spain 

March 22: New income tax treaties between the UK and Norway and between the UK and Spain were signed 14 March 2013.  The new treaties will enter into force after the ratification procedures have been completed in each country.

UK-Norway income tax treaty

Among the provisions in the income tax treaty with Norway:


  • A zero (0%) withholding tax on dividends received by pension funds and by companies that have a 10% or more control of the dividend-paying company
  • The latest OECD provisions on business profits, exchange of information, assistance in collection and arbitration
  • A change to the pensions article so that pensions will be taxed at source; existing pensioners will have a safeguard of being able to elect to continue to be taxed in their country of residence as provided by the current UK-Norway income tax treaty

UK-Spain income tax treaty

Among the provisions of the income tax treaty with Spain


  • The existing 15% dividend withholding tax rate in the existing treaty to be reduced to 10% for portfolio investors and to zero (0%) for direct investors and pension plans
  • The withholding tax rates for interest and royalties reduced to 0%
  • A provision to clarify access to treaty benefits by participants in fiscally transparent entities, an arbitration provision, and updated anti-abuse measures

Read text of the treaties on HM Revenue & Customs website.

2013 Budget

The Chancellor of the Exchequer on 20 March 2013 delivered the 2013 Budget statement to the House of Commons—including tax proposals affecting business and individual taxpayers. Among the tax measures included in the budget are provisions concerning:


  • Seed enterprise investment plan
  • Company car and fuel-benefit scale charges
  • Tax relief on employer funded health-related intervention
  • London Anniversary Games and Glasgow Commonwealth Games – income tax exemption
  • Taxation of individuals and employers

Read a March 2013 report [PDF 159 KB] prepared by the KPMG member firm in the United Kingdom: Weekly Tax Matters (22 March 2013)


Today's KPMG report also provides summaries of the following items:


  • Upper Tribunal decision in Land Securities
  • Changes to UK immigration rules
  • Inheritance tax and speciality debts
  • Recent VAT court cases


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For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

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1801 K Street NW
Washington, DC 20006.
 

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