Although an agreement promoting a strong partnership between the European Union and the United Kingdom was signed, it was specified that UK cannot be treated as an EU Member State. Consequently, Article 49 TFEU regarding the freedom of establishment cannot be applied, as it is limited within the EU.
Likewise, it is not possible to apply the 1.20% withholding tax envisaged by the Italian domestic law, as it is limited to distributions of profits in favour of companies and entities subject to an income tax in the EU or EEA Member States.
In the case at hand, therefore, Article 10 paragraph 2(a) of the ITA-UK DTA will apply. So, for dividends paid, the applicable withholding tax will be limited to the:
Our professionals at the Uk Desk in Milan and our London Office are available to provide more information to corporate, private or institutional clients.