Talk:Withholding tax

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[edit] Scope of the tax

Did I get it right that this tax is applied only to natural persons, i.e. parent-subsidiary-relations of companies are out of scope (they get dividends or share sale revenues without a withholding tax deduction)? 84.173.227.7 12:18, 14 November 2007 (UTC)

Not correct. Withholding tax is typically levied on any combination of interest, royalties, dividends or payments for services paid by residents of one jurisdiction to residents (companies or individuals) of another jurisdiction. For instance, the United Kingdom levies a withholding tax of 20% on interest paid by UK residents to non-residents, unless a double taxation treaty or the EU Interest and Royalties Directive applies. --DWR (talk) 03:08, 24 April 2008 (UTC)