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Posted Sun, 05 Mar 2023 20:48:40 GMT by records0121
Hi, Really looking for assistance / help with this as I can’t find any proper answers online. I am the director of a UK Limited company and I am a UK resident. I’m expecting a payment from a company based in India however they’re telling me the payment will be subject to a 20% withholding tax. My main concern is the 85% of the money I’ll be receiving will be spent on expenses and therefore will not be profit. 1/ is the company correct in saying the payment will be subject to a withholding tax 2/ is there anyway for me to claim that 20% back immediately as it’ll be needed to cover expenses 3/ is there any way for me to receive the money from India without the withholding tax and then pay the tax when it comes to my annual accounts. Really sorry if this seems straightforward, just can’t work it out. Thanks
Posted Tue, 07 Mar 2023 13:05:20 GMT by HMRC Admin 10
Hi
You can apply for a certificate of residency.
Please look at this ,How to apply for a certificate of residence to claim tax relief abroad - GOV.UK (www.gov.uk).
You will need to check if India requires a form, or if a generic one can be requested. 
Once received you can use this to show you are not due to pay tax, there fore it should prevent withholding tax.
However, if it does not or it was not received in time to prevent the withholding tax then you can use it to claim a refund. 
This will change from country to country, so I would advise you to also speak to the authorities in India, and they can offer you more about their process to avoid withholding tax.  
Thankyou.
Regards.

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