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HMRC internal manual

Double Taxation Relief Manual

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HM Revenue & Customs
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Antigua: double taxation agreement, Paragraph 13: Elimination of double taxation

13(1) Subject to the provisions of the law of the United Kingdom regarding the allowance as a credit against United Kingdom tax of tax payable in a territory outside the United Kingdom (which shall not affect the general principle hereof) -

(a) Antigua tax payable under the laws of Antigua and in accordance with this Arrangement, whether directly or by deduction, on profits or income from sources within Antigua shall be allowed as a credit against any United Kingdom tax computed by reference to the same profits or income by reference to which Antigua 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 Antigua 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 Antigua tax for which credit may be allowed under (a) of this sub-paragraph) the Antigua tax payable by that first-mentioned company in respect of the profits out of which such dividend is paid.

13(2) Subject to the provisions of the law of Antigua regarding the allowance as a credit against Antigua tax of tax payable in a territory outside Antigua (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 Arrangement, whether directly or by deduction, on profits or income from sources within the United Kingdom shall be allowed as a credit against any Antigua 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) Where a company which is a resident of the United Kingdom pays a dividend to a company resident in Antigua 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 (a) of this sub-paragraph) the United Kingdom tax payable by that first-mentioned company in respect of the profits out of which such dividend is paid.

13(3) For the purposes of this paragraph 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 ships or aircraft operated by a resident of one of the territories shall be deemed to be performed in that territory.

13(4) Where Antigua income tax is payable for a year for which this Arrangement has effect in respect of any income in respect of which United Kingdom income tax is payable for a year prior to the year beginning on the 6th April, 1947, then -

(a) in the case of a person resident in Antigua, the Antigua income tax shall, for the purposes of sub-paragraph (2) of this paragraph, be deemed to be reduced by the amount of any relief allowable in respect thereof under the provisions of Section 27 of the United Kingdom Finance Act, 1920; and

(b) in the case of a person resident in the United Kingdom, the provisions of Section 51 of the Antigua Income Tax Ordinance, 1945, shall apply for the purposes of the allowance of relief from the Antigua tax.