Section 831A Treatment of distributions to certain parent companies
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Amendments
Section 831A inserted by Finance Act 2005 section 51 as respects a distribution made on or after 1 July 2005.
(1)(a) In this section―
"company", in relation to a company that is resident for the purposes of tax in Switzerland, means a company which―
(i) takes one of the forms specified in Article 15 of the Agreement attached to the Council Decision (2004/911/EC) of 2 June 2004 on the signing and conclusion of the Agreement between the European Community and the Swiss Confederation providing for measures equivalent to those laid down in Council Directive 2003/48/EC of 3 June 2003 on taxation of savings income in the form of interest payments and the accompanying Memorandum of Understanding (OJ L381, 28.12.2004, p. 32), and
(ii) is subject to tax in Switzerland without being exempt;
"parent company" means a company which controls not less than 25 per cent of the voting power in another company;
"tax", in relation to Switzerland, means any tax imposed in Switzerland which corresponds to income tax or corporation tax in the State.
(b) For the purposes of this section a company shall be a subsidiary of another company which holds voting rights in it where the other company's holding of those rights is sufficient for that other company to be a parent company.
Do I have to apply withholding tax to a payment made to my 25% parent which is resident in another EU State?
(1) As part of the agreement between the EU and Switzerland, by which Switzerland would implement the EU Savings Directive and apply withholding tax to interest payments, it was agreed that Swiss companies would be extended the benefits of the EU Par...
(2) Chapter 8A of Part 6, other than section 172K, shall not apply to a distribution made to a parent company which is, by virtue of the law of Switzerland, resident for the purposes of tax in Switzerland by its subsidiary which is a company resident in the State.
