(1)
(a)
(i) Dividends derived from a company which is a resident of the
United Kingdom by a resident of Trinidad and Tobago may be taxed in
Trinidad and Tobago.
(ii) Where a resident of Trinidad and Tobago is entitled to
a tax credit in respect of such a dividend under sub-paragraph (b)
of this paragraph, tax may also be charged in the United Kingdom
and according to the laws of the United Kingdom on the aggregate of
the amount or value of that dividend and the amount of that tax
credit at a rate not exceeding 20 per cent.
(iii) Except as aforesaid dividends derived from a company
which is a resident of the United Kingdom by a resident of Trinidad
and Tobago who is the beneficial owner of the dividends shall be
exempt from any tax in the United Kingdom which is chargeable on
dividends.
(b) A resident of Trinidad and Tobago who receives a dividend
from a company which is a resident of the United Kingdom shall,
subject to the provisions of sub-paragraph (c) of this paragraph
and provided he is the beneficial owner of the dividend, be
entitled to the tax credit in respect thereof to which an
individual resident in the United Kingdom would have been entitled
had he received that dividend and to the payment of any excess of
that tax credit over his liability to United Kingdom tax.
(c) The provisions of sub-paragraph (b) of this paragraph
shall not apply where the beneficial owner of the dividend is a
company which either alone or together with one or more associated
companies controls, directly or indirectly, at least 10 per cent of
the voting power in the company paying the dividend. For the
purposes of this subparagraph, two companies shall be deemed to be
associated if one controls, directly or indirectly, more than 50
per cent of the voting power in the other company, or a third
company controls more than 50 per cent of the voting power in both
of them.
(2) Dividends derived from a company which is a resident of Trinidad and Tobago by a resident of the United Kingdom may be taxed in the United Kingdom. Such dividends may also be taxed in Trinidad and Tobago and according to the laws of Trinidad and Tobago, but if the recipient is the beneficial owner of the dividends the tax so charged shall not exceed:
(a) 10 per cent of the gross amount of the dividends if the
beneficial owner is a company which controls, directly or
indirectly, at least 25 per cent of the voting power in the company
paying the dividends;
(b) 20 per cent of the gross amount of the dividends in all
other cases.
(3) The term `dividends` as used in this Article means income
from shares or other rights, not being debt-claims, participating
in profits, as well as income from other corporate rights
assimilated to income from shares by the taxation law of the State
of which the company making the distribution is a resident and also
includes any other item which, under the law of the Contracting
State of which the company paying the dividend is a resident, is
treated as a dividend or distribution of a company.
(4) The provisions of paragraphs (1) and (2) of this Article
shall not apply if the beneficial owner of the dividends, being a
resident of a Contracting State, carries on business in the other
Contracting State of which the company paying the dividends is a
resident, through a permanent establishment situated therein, and
the holding in respect of which the dividends are paid is
effectively connected with such permanent establishment. In such
case, the provisions of Article 7 shall apply.
(5) Where a company which is a resident of a Contracting
State derives profits or income from the other Contracting State
that other State may not impose any tax on the dividends paid by
the company, except insofar as such dividends are paid to a
resident of that other State or insofar as the holding in respect
of which the dividends are paid is effectively connected with a
permanent establishment situated in that other State, nor subject
the company's undistributed profits to a tax on undistributed
profits, even if the dividends paid or the undistributed profits
consist wholly or partly of profits or income arising in that other
State.
