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Double taxation relief

This is a very complex subject. It deals with the relief afforded a company or other business earning profits abroad, this profit being taxable in the other country. There are two principal forms of country. There are two principal forms of Kingdom will only be such as to make the total tax payable equivalent to the U.K. rate. This applies where there is a double taxation agreement with the other country. (2) The tax payable abroad is allowed as a deduction when calculating taxable profits. When the full United Kingdom tax rate is not paid on profits earned overseas, only the not paid on profits earned overseas, only the net United Kingdom rate, can be reclaimed by persons receiving these profits and entitled to make repayment claims. Most companies state ‘net United Kingdom rate’ when this applies to tax deducted from dividends.

Reference: The Penguin Business Dictionary, 3rd edt.