Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Double Taxation Relief Manual

From
HM Revenue & Customs
Updated
, see all updates

Venezuela: Source of income

For the purposes of the Elimination of double taxation Article, profits, income or capital gains owned by a resident of the United Kingdom which may be taxed in Venezuela under the provisions of the agreement are deemed to be profits, income or capital gains from sources in Venezuela (Article 22(6)).

Interest is usually deemed to arise in the State in which the payer is resident, including where the payer is the State itself or a political subdivision or local authority thereof. The exception is where the person paying the interest has, in either of the countries, a permanent establishment or fixed base in connection (see INTM 153110) with which the indebtedness on which the interest is paid was incurred, and such interest is borne by that permanent establishment or fixed base. In such a case the interest is deemed to arise in the State in which the permanent establishment or fixed base is situated (Article 11(7)).

Similarly, royalties are deemed to arise in the State in which the payer is resident, including where the payer is the State etc. as above, except where the person paying the royalties has, in either of the countries, a permanent establishment or fixed base in connection with which the obligation to pay the royalties was incurred, and such royalties are borne by that permanent establishment or fixed base. In such a case the royalties are deemed to arise in the country in which the permanent establishment or fixed base is situated (Article 12(5)).