Canada's New Tax Treaty with Taiwan Enters into Force

Canada's New Tax Treaty with Taiwan Enters into Force

Finance recently announced that the new Canada-Taiwan tax treaty has entered into force.

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The treaty, which was signed on January 15, 2016, will limit the rate of withholding tax to:

  • 10% on dividends paid to a company that holds directly or indirectly at least 20% of the capital of the company that pays the dividends 
  • 15% on dividends paid in all other cases 
  • 10% for payments of interest and royalties.

Canada and Taiwan have notified each other that the procedures required by their laws for bringing the treaty into force have been completed. In Canada, the treaty will apply to taxes withheld at source on amounts paid or credited to non-residents on or after the first day of January 2017. For other taxes, the treaty will apply to taxation years beginning on or after the first day of January 2017.

For more information, contact your KPMG adviser.

Information is current to January 17, 2017. 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

© 2017 KPMG LLP, a Canada limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

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