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Posted Mon, 21 Oct 2024 09:32:21 GMT by sabrina_yin
Hi, i am the bookkeeper. Whereas Party A is a company duly incorporated under the laws of China, and Party B is a company incorporated under the laws of the UK,
Party A agrees to provide Party B with the following supported services:
Product Technology supporting service
Accounting supporting service
Human Resources and Administration supporting service
Supply Chain supporting service
Business supporting service
General administrative service.
Party B to Pay Party A Monthly Service Fee Based on Actual Expenses Incurred.
Party A is non-resident in UK. whether the UK company should deduct tax before paying the service fee such as the VAT and with holding tax?
Posted Thu, 24 Oct 2024 14:48:29 GMT by HMRC Admin 13 Response
Hi 
This forum is for general queries only and is intended to help you self-serve. Unfortunately, we are unable to provide specific advice tailored to individual circumstances or offer any interpretation of the guidance.
Customers with more complex enquiries often engage the services of a professional advisor or accountant and this may be something you wish to consider.
If a company has income from a source in one country and is resident in another, it may be liable to pay tax in both countries. 
Companies resident in a country with which the UK has a double taxation treaty may be able to claim exemption or partial relief from withholding tax on certain types of UK income. 
Further information can be found at Tax treaties and INTM150000 - Principles of Double Taxation Relief and Introduction to Double Taxation Agreements - HMRC internal manual
Thank you

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