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Protocol Amending the Double Taxation Agreement between UK and China
In an expected move, the Protocol to the Double Taxation Agreement between the UK and China recently entered into force on 13 December 2013, reports Nair & Co.’s International Tax Team.
The provisions of the protocol, which among others include a reduction in withholding tax to 5% on inter-company dividends fulfilling certain conditions, are applicable in China from 1 January 2014. The same shall apply in the UK on or after 1 April 2014 for corporate taxes and from 6 April 2014 for income and capital gains taxes.
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