Hello Team,
Just a question, is it intended that non-uk residents get 0% taxed on UK company dividends?
I would expect witholding tax, am I wrong?
Croatia has 10% treaty with UK.
https://www.porezna-uprava.hr/bi/Stranice/Dvostruko-oporezivanje.aspx
Thanks,
V
For The Netherlands there is a tax treaty with the UK which states dividend is 0% taxed. Maybe same for other European countries?
Croatia has taxation treaty at 10%.
https://www.porezna-uprava.hr/bi/Stranice/Dvostruko-oporezivanje.aspx
I’m not sure, but isn’t your duty to pay the difference upon your tax declaration in Croatia? I don’t think it is practical for companies to distribute dividends and adjust the withholding tax according to their holder’s tax countries. I was reading something related to this but regarding specifically the Czech Republic. Again, this is only what I guess.
I was under impression it was brokers task , but then again I haven’t dug deeper into the subject. I was used to US stocks which are 30% witheld for Croatian citizens. Thus if UK folks are 15% witheld someone does the differential 
I am just curious in light of issues with French witholding tax, if this is similar type issue where we get 0% taxed as T212 is UK entity.
I understand. It would be great to hear from the team, but I have the impression they (brokers) don’t do that (I would be glad if they did, it would be an easier job every year). Let’s see what they will say.
Regarding France, it is not that good option for a tax resident in the CZ, as I saw the sample below. It can be a guide for your calculations, but first you need to know how much you pay on income from France.
France (20%):
the UK does not have withholding tax for dividends. doesn’t matter if you a UK resident or not, you will not pay any taxes to the UK government from your dividends, only the tax as applied to you by your own country in regards to earning dividends.
Thanks Dao, I got confused by Croatian double taxation treaty, was expecting that all countries on the list would take on their piece of cake
Found information:
Withholding tax:
Dividends – There typically is no withholding tax on
dividends paid by UK companies under domestic law,
although 20% withholding tax generally applies to
distributions paid by a REIT from its tax-exempt rental
profits (subject to relief under a tax treaty).
Interest – Interest paid to a nonresident is subject to
20% withholding tax, unless the rate is reduced under a
tax treaty or the interest is exempt under the EU interest
and royalties directive. The continuing application of the
directive after 29 March 2019 is dependent upon the
outcome of ongoing negotiations in connection with the
UK’s withdrawal from the EU.
A reduction of the withholding tax rate under a tax treaty
or the directive is not automatic; advance clearance must
be granted by the UK tax authorities.
Royalties – Royalties paid to a nonresident are subject
to a 20% withholding tax, unless the rate is reduced
under a tax treaty or the royalties are exempt under the
EU interest and royalties directive. The continuing
application of the directive after 29 March 2019 is
dependent upon the outcome of ongoing negotiations in
connection with the UK’s withdrawal from the EU.
Advance clearance is not required to apply a reduced rate
of withholding tax under a tax treaty or the directive
So I guess 10% is ment for the REITs dividends royalties and interest.
Cheers for clearing up
Does Trading 212 deduct the withholding tax on dividends based on the tax treaty rate or the standard rate?
I know for US stocks they deduct 15% after filing the w-8ben form. How about French or German stocks?
French were taxed 28% even tho EU has treaty. There was no follow up feedback.