I have read that the US government exercises a 15% (or even 30%, where the foreign country is not in the double-taxation treaty with the US) withholding tax on US dividends, if the shareholder is foreigner, that is, not US resident.
If I own a UK Ltd company, which in turn owns public US companies stocks, (e.g. Coca-Cola) do I have still have to pay double taxation? 15% of US withholding tax and 20% of UK corporate tax on US companies dividends (Since dividends are treated like corporate income) makes a 35% taxation on dividends income, which in the long term will definitely cripple the compound interest growth.
There is a way to avoid this double taxation?
NOTE: This happens even with individuals and not only with UK Ltd companies, since individuals will pay 15% US withholding tax plus UK income tax on dividends.