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HMRC internal manual

Double Taxation Relief Manual

From
HM Revenue & Customs
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Namibia: double taxation agreement, Article 6: Dividends

(1) Where dividends are paid by a company which is a resident of South West Africa to a resident of the United Kingdom, South West African tax may be charged in respect of such dividends, but the rate of South West African tax so charged (whether in the form of non-resident shareholders’ tax or any other tax on dividends) shall not exceed:

  1. 5% of the gross amount of the dividends if the recipient is a company which controls, directly or indirectly, more than 50% of the entire voting power in the company paying the dividend;
  2. in any other case, 15% of the gross amount of the dividends.

(2) Dividends paid by a company which is a resident of the United Kingdom to a resident of South West Africa, who is subject to tax in South West Africa in respect thereof, shall be exempt from United Kingdom surtax.

(3) The provisions of paragraphs 1 and 2 of this Article shall not apply if the recipient of the dividends being a resident of one of the territories has in the other territory of which the company paying the dividends is a resident a permanent establishment with which the holding by virtue of which the dividends are paid is effectively connected.

(4)

  1. Dividends paid by a company which is a resident of the United Kingdom shall be exempt from South West African non-resident shareholders’ tax and from any other tax in South West Africa on dividends paid by such a company to persons not resident in South West Africa.
  2. Dividends paid by a company which is a resident of South West Africa shall be exempt from any tax in the United Kingdom on dividends paid by such a company to persons not resident in the United Kingdom.

By virtue of the Extension of 8 August 1962, this Article has effect as if:

(i) the reference in paras. 1 and 3 above to dividends paid by a company which is a resident of the territory of Namibia included a reference to any amount which, under the law of that territory relating to the taxation of the income subject to super tax of private companies, is apportioned out of the income subject to super tax of any private company which is a resident of or carries on business in the territory of Namibia;

(ii) the reference in the said paragraphs to the recipient of the dividend or the company paying the dividend, as the case may be, included a reference, respectively, to the shareholder to whom the amount is apportioned as aforesaid or to the private company out of whose income subject to super tax that amount is so apportioned; and

(iii) the provisions of sub-para. (a) of para. 1 applied also to so much of any amount apportioned out of the income subject to super tax of any private company which is a resident of or carries on business in the territory of Namibia to any company, which is a resident of the Republic of South Africa (hereinafter referred to as `the South African company`) and more than 50% of the entire voting power in which is controlled directly or indirectly by a company which is a resident of the UK, as would have been apportionable to the last-mentioned company if the law of the territory of Namibia relating to the apportionment of the income subject to super tax of private companies had applied to the South African company.