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HMRC internal manual

Double Taxation Relief Manual

From
HM Revenue & Customs
Updated
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Guidance by country: Albania: interest

Where the beneficial owner of interest is a resident of the United Kingdom, withholding tax at a rate not exceeding 6% is payable.

However interest is payable gross where the beneficial owner is:

  • the United Kingdom Government, the Bank of England, a political sub-division, or a local authority;
  • a resident of the United Kingdom and the interest is paid by Albania or one of its political subdivisions or local authorities;
  • a resident of the United Kingdom and the interest is paid in respect of a loan or debt owed to, or made, guaranteed or insured by the United Kingdom Government or a political subdivision, local authority, or export financing agency;
  • a financial institution;
  • a resident of the United Kingdom and the interest is paid with respect to indebtedness arising from the sale on credit of any equipment, merchandise or services; or
  • a pension scheme.

The reduced rates provided by the treaty are not given if the interest is effectively connected (see INTM153110 eighth sub-paragraph) with a permanent establishment which the United Kingdom resident recipient has in Albania.