The governments of Switzerland and Ethiopia signed a double tax treaty on July 29 in Addis Ababa.
For dividends, the treaty sets a 5% withholding tax rate when the beneficial owner is a company resident in the other treaty country that directly holds at least 25% of the capital of the company paying the dividends throughout the year leading up to the date of the payment. The 5% rate also applies if the beneficial owner is a pension fund or central bank in the other contracting state. Otherwise, a 15% rate applies.
For interest and royalties, withholding tax rates of 5% apply under the treaty.
The treaty will enter into force after both countries have ratified the agreement and exchanged notices of ratification.
On 29 July 2021 in Addis Ababa, Switzerland and Ethiopia signed an agreement on the avoidance of double taxation with respect to income tax. This will ensure legal certainty for the ongoing development of bilateral economic relations and tax cooperation. #doubletaxation #tax https://t.co/vlt3RuzFOt
— SIF_SFI (@sif_sfi) July 29, 2021
Be the first to comment