Revenue eBrief No. 141/18

02 July 2018

Payment and receipt of interest without deduction of Income Tax

Tax and Duty Manual Part 08-03-06: Payment and receipt of interest without deduction of Income Tax - has been updated to:

  • Provide clarification that where:
    • withholding tax is deducted in error from an interest payment
    • a full or partial refund of the withholding tax deducted may be due under a Double Taxation Agreement

then a claim for any refund of the withholding tax deducted should be made on a Form IC6.

  • Include a clarification, previously given in e-Brief 43 of 2012, regarding the application of Section 246(3)(h)(I) to interest payments made to territories providing for a remittance basis of taxation.