Canada and Taiwan sign tax agreement, text available

Taiwan and Canada have signed an arrangement to avoid double taxation, Canada’s Department of Finance announced today.

The agreement, signed January 15, reduces withholding tax on dividends to 10 percent if paid to a company that holds directly or indirectly at least 20 percent of the capital of the company that pays the dividends. Withholding on dividends is reduced to 15 percent in other cases.

Withholding on interest and royalties is reduced to 10 percent under the tax arrangment. Some payments of interest are exempt from withholding.

The agreement also updates provisions on exchange of tax information, following OECD standards.

The agreement is the first tax treaty signed by Taiwan and a North American country.

See:

• Text of the tax arrangement