Canada-Spain Treaty Protocol to Enter into Force | KPMG | CA

Canada-Spain Treaty Protocol to Enter into Force

Canada-Spain Treaty Protocol to Enter into Force

Global Tax Adviser, October 06, 2015. Canada's Protocol amending its tax treaty with Spain will come into force on December 12, 2015, according to a Finance announcement released September 29, 2015. Among other changes, the protocol provides for assistance in tax collection and includes provisions that reflect the standards developed by the OECD for the exchange of tax information. First signed on November 18, 2014, the revised treaty also reduces withholding tax rates applicable to payments of dividends and interest and exempts from withholding tax certain payments of interest and dividends paid to certain pension plans.

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Withholding tax changes

Under the revised treaty, withholding tax will generally be limited to

  • 15% on dividends (or 5% for an entity that directly holds at least 10% of the capital in the company paying the dividends)
  • 10% on interest (0% on arm's-length interest).

For more information, contact your KPMG adviser.

Disclaimer

Information is current to October 06, 2015. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500

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