Guidance

Receiving interest, royalties or dividends payments from the EU

Find out about changes to tax deductions from interest, royalties and dividends following the end of the Brexit transition period.

From 1 January 2021, some EU countries may start to deduct tax from interest, royalty and dividend payments made into the UK.

What you’ll need to do

Check the terms of the double taxation agreement between the UK and relevant EU country if your company:

  • is based in the UK
  • receives interest, royalties or dividends payments from an associated company in the EU

The amount of tax deducted will depend on the double taxation agreement between the UK and relevant EU country.

You can usually apply for full or partial exemption, or claim back some or all of the tax you have already paid under the relevant double taxation agreement.

You may need to submit a new or revised claim to the tax authorities of the EU country.

Published 5 January 2021