In April of 2013 in the United Kingdom, HMRC introduced a new Statutory Residency Test in an effort to more clearly legislate tax residency. The test is comprised of basic questions regarding duration of stay in the UK or abroad. The corresponding residency status applies once an individual answers yes to one of the questions in order, and if the test is inconclusive, a “ties” test is used to examine connection factors.
Netherlands and China signed tax treaty on 31 May 2013. The main benefits of the new tax treaty are a reduction from 10% to 5% in the withholding tax rate on intercompany dividends, if the recipient company holds at least 25% of the capital of the company paying the dividends. A zero rate will apply to dividends paid to the government or related entities.