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HMRC internal manual

Double Taxation Relief Manual

From
HM Revenue & Customs
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DT: Malawi: double taxation agreement, Article 13: Elimination of double taxation

 

Article 13(1) was substituted by SI68/1101 as below;

(1) Subject to the provisions of the law of the United Kingdom regarding the allowance as acredit against United Kingdom tax of tax payable in a territory outside the United Kingdom (which shall not affect the general principle hereof) -

 

(a) Malawi tax payable under the laws of Malawi and in accordance with this Agreement, whether directly or by deduction, on profits or income from sources within Malawi shall be allowed as a credit against any United Kingdom tax computed by reference to the same profits or income by reference to which the Malawi tax is computed. Provided that in the case of a dividend the credit shall only take into account such tax in respect thereof as is additional to any tax payable by the company on the profits out of which the dividend is paid and is ultimately borne by the recipient without reference to any tax so payable.

(b) Where a company which is a resident of Malawi pays a dividend to a company resident in the United Kingdom which controls directly or indirectly at least 10 per cent. of the voting power in the first-mentioned company, the credit shall take into account (in addition to any Malawi tax for which credit may be allowed under sub- paragraph (a)) the Malawi tax payable by that first-mentioned company in respect of the profits out of which such dividend is paid.

(2) Subject to the provisions of the law of Malawi regarding the allowance as a credit against Malawi tax of tax payable in a territory outside Malawi (which shall not affect the general principle hereof)

(a) United Kingdom tax payable under the laws of the United Kingdom and in accordance with this Agreement, whether directly or by deduction on profits or income from sources within the United Kingdom shall be allowed as a credit against any Malawi tax computed by reference to the same profits or income by reference to which the United Kingdom tax is computed. Provided that in the case of a dividend the credit shall only take into account such tax in respect thereof as is additional to any tax payable by the company on the profits out of which the dividend is paid and is ultimately borne by the recipient without reference to any tax so payable.

(b) If Malawi tax is payable in respect of a dividend paid by a company which is a resident of the United Kingdom to a company resident in Malawi which controls directly or indirectly at least 10 per cent. of the voting power in the first-mentioned company, the credit shall take into account (in addition to any United Kingdom tax for which credit may be allowed under sub-paragraph (a)) the United Kingdom tax payable by that first-mentioned company in respect of the profits out of which such dividend is paid.

(3) For the purposes of this Article, profits or remuneration for personal (including professional) services performed in one of the territories shall be deemed to be income from sources within that territory, and the services of an individual whose services are wholly or mainly performed in aircraft operated by a resident of one of the territories shall be deemed to be performed in that territory.