Double Taxation Treaty Passport Scheme for Overseas Corporate Lenders

August 04, 2010
Her Majesty’s Revenue and Customs have announced the launch of a new Double Taxation Treaty Passport Scheme for the UK. The aim of the scheme is to speed up and simplify the process by which overseas corporate lenders apply to receive interest payments from UK borrowers with no or reduced withholding tax. The scheme will be available for use from 1 September 2010. This update discusses the details of the scheme, the benefits and implications of applying for passport holder status and the steps by which to apply for a passport. It contains details of treaty rates of withholding on interest for selected Asian countries who have double taxation treaties with the UK.