Exam ICWIM Topic 1 Question 67 Discussion

Actual exam question for CISI's ICWIM exam
Question #: 67
Topic #: 1
When a UK-based investor receives overseas equity dividend income, which one of the following types of tax may have been deducted?

Suggested Answer: B Vote an answer

* What is Withholding Tax?
* Withholding tax is a tax levied by a foreign government on income, such as dividends or interest, paid to non-resident investors.
* When a UK-based investor receives dividend income from overseas equity, the source country often deducts withholding tax before the payment is made.
* Why the Other Options are Incorrect
* A. Stamp Duty: This is a transaction tax levied in the UK on share purchases, not dividend income.
* C. Value Added Tax: VAT is a consumption tax on goods and services, irrelevant to dividends.
* D. UK Corporation Tax: This applies to company profits, not individual dividend payments.
* ICWIM Study Guide, Chapter on Taxation: Explains withholding tax on cross-border investments.
* UK Tax Regulations: Confirm the application of withholding tax on overseas income.
ReferencesThus, the correct answer isB. Withholding Tax.

by Anna at Sep 06, 2025, 05:39 AM

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