Withholding Tax

Withholding taxes (WHT) are when tax is withheld from (or deducted from the income due to) the recipient by the payer, and directly paid to the government. In most tax jurisdictions, withholding tax applies to employment income (think of PAYE) but some tax systems withhold tax on other forms of income.

Below you can find the current forms we hold on file for withholding tax and HMRC's Certificate of Residence. These are used so you do not get taxed twice on foreign income. Occasionally both are required to be sent to the customer/agent.

Withholding Tax form process:

The department will need to download the WHT form and fill in the following information:

• Type of income: royalties, interest, dividends, services

• Description of income

• Customer/Agent's name, address, VAT number

• Amount of income

• Invoice/contract date may need to be included

• A copy of the contract may need to be included

• Money to be refunded by the other country’s tax authority? – the Tax Team will fill in the bank details

Once the WHT is filled in by the department, this needs to be emailed to the Tax Team.

The Tax Team will mail the form to HMRC for them to sign.