UK Exemption from Withholding Tax on Interest and Royalties to be Repealed

  • By:Melissa Speigner

The UK will repeal the EU Interest and Royalty Directive legislation that was transposed into UK  law by virtue of Council Directive 2003/49/EC. The withdrawal of the exemption shall become effective  on the 1st  June 2021. Consequently,  companies that pay interest and royalties to other associated companies incorporated or based in the EU will have to pay UK withholding tax unless there is a double tax treaty in place.

Posted in: International Taxation