This article is to advise the Lloyd’s market of the new UK/Colombia Double Tax Treaty that applies for withholding taxes from 1 Jan 2020
The UK/Colombia Double Tax Treaty entered into force on 16 Dec 2019 and is effective for withholding taxes from 1 Jan 2020.
A withholding tax of 1% currently applies to Colombian source reinsurance premiums remitted to non-resident insurers. Under the new UK/Colombia Double Tax Treaty, Lloyd’s Syndicate Members may be able to reduce this withholding to nil if UK residency can be evidenced. Given that the Double Tax Treaty has only been effective from 1 Jan 2020, common practice in this area is still developing, however, we expect the provision of a UK Certificate of Residence for the Syndicate Members to be sufficient to benefit from the treaty rate.