underlying tax definition
underlying tax means, in relation to any dividend, tax which is not chargeable in respect of that dividend directly or by deduction.
underlying tax. ’ means foreign tax which is borne by the foreign company on the profits out of which a dividend is deemed to be paid. If the foreign company (or a company of which it is a subsidiary) controls, directly or indirectly, 10% or more of the voting power of another company, the underlying tax applicable to dividends received by the foreign company from that other company may also be taken into account and so on through any number of companies so long as the 10% chain of control is maintained. The chain of companies can include a company which is resident in the UK, but no account may be taken of any tax paid by that company other than UK corporation tax paid by it plus the tax credit relief given to it.
underlying tax means, in relation to any dividend, foreign tax payable on the profits or gains out of which the dividend is paid;
More Definitions of underlying tax
underlying tax means, in relation to any dividend, tax which is not chargeable in respect thereof directly or by deduction, and
underlying tax. , in relation to a dividend, means tax borne by the company paying the dividend on the relevant profits (within the meaning of paragraph (8)) in so far as it is properly attributable to the proportion of the relevant profits represented by the dividend.