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Canada signs double tax agreement with Taiwan

Canada signs double tax agreement with Taiwan

OTTAWA: Under the deal, the withholding tax rate for dividends will be capped at 15%. A 10% rate will apply to dividends paid to a company that holds directly or indirectly at least 20% of the capital of the dividend paying company, reports Tax News.

Payments of interest and royalties will be subject to a maximum withholding tax rate of 10%. Certain unspecified payments of interest will be exempt.

Trade between the two countries was $3.4bn (£2.4bn, €3.1bn) during the first 11 months of 2015, making Taiwan Canada’s 12th largest trading partner and 17th largest export market, reports Taiwan Today. Signed in Taipei on 15 January 2016, the agreement will come into effect on 1 January 2017.