40Dividend payments

#### 40 Dividend payments (1) The amount to be withheld from a dividend to which section 12‑210 of Schedule 1 to the Act applies is: (a) if an address mentioned in paragraph 12‑210(a), or a place mentioned paragraph 12‑210(b), of Schedule 1 to the Act is in a tax sharing country and the relevant international tax sharing treaty applies to the dividend—an amount calculated at the rate provided for in the treaty; and (b) if paragraph (a) does not apply, but that address or place is in a double tax country—an amount calculated at the rate provided for in the relevant double tax agreement; and (c) if paragraphs (a) and (b) do not apply—an amount equal to 30% of the amount of the dividend. (2) The amount to be withheld from a dividend to which section 12‑215 of Schedule 1 to the Act applies is: (a) if a foreign resident mentioned in paragraph 12‑215(1)(b) of Schedule 1 to the Act is a resident of a tax sharing country and the relevant international tax sharing treaty applies to the dividend—an amount calculated at the rate provided for in the treaty; and (b) if paragraph (a) does not apply, but that foreign resident is a resident of a double tax country—an amount calculated at the rate provided for in the relevant double tax agreement; and (c) if paragraphs (a) and (b) do not apply—an amount equal to 30% of the amount of the dividend. (3) However, paragraphs (1)(b) and (2)(b) do not apply in relation to a dividend that is: (a) paid to a resident of the United States of America; and (b) included in a class of dividends that is exempt from tax under the law of that country.