China, UK sign Tax Protocol allowing 5% withholding on certain intercompany dividends [TAX ALERT]

April 2, 2013

On 27 February 2013 a protocol (Protocol) amending the pending 2011 UK-China (PRC) Income Tax Treaty (Treaty) was signed.

The Protocol allows a 5% reduced withholding tax on intercompany dividends if the beneficial owner holds directly at least 25% of the capital of the companying paying the dividends.

Further details are available from the Ernst & Young Tax Alert which can be accessed using the link below:

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