Tax Arrangement Signed Between the Trade and Economic Offices of Canada and Taiwan

January 18, 2016

• Full text of the Tax Arrangement

An Arrangement between the Canadian Trade Office in Taipei and the Taipei Economic and Cultural Office in Canada for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income was signed on January 15, 2016 in Taipei.

The Arrangement limits 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, and 15% on dividends paid in all other cases; and to 10% for payments of interest and royalties. The Arrangement also exempts from withholding tax certain payments of interest.

The Arrangement includes provisions reflecting the standard developed by the Organisation for Economic Cooperation and Development for the exchange of tax information.

The Canadian Trade Office in Taipei and the Taipei Economic and Cultural Office in Canada will notify each other of the completion of the procedures required in their respective territories for the coming into effect of this Arrangement. The Arrangement will have effect in accordance with Section 27 (Entry into Effect) of the Arrangement.

For further information contact:

Tax Legislation Division
Phone: 613-369-4016

For information concerning the interpretation and application of Canada’s tax treaties, please contact the Canada Revenue Agency (CRA). Contact information is available on the CRA website. The CRA website has information concerning tax treaties and other information concerning international tax issues.