Annual lists 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995

Ottawa, April 19, 2001
2001-042 

Canada and Germany Sign Tax Agreement

Related document:

• Text of the Convention.

Finance Minister Paul Martin announced that an Agreement between Canada and Germany for the avoidance of double taxation and the prevention of fiscal evasion was signed today in Berlin.

Under the Agreement:

• a withholding tax of 5 per cent will apply to dividends paid to a company that controls at least 10 per cent of the voting power in the company paying the dividends. A withholding tax of 15 per cent will apply to all other dividend payments; and

• a withholding tax of 10 per cent will apply to interest and royalty payments. There will be exemptions for certain interest, copyright royalties and royalties in respect of certain computer software, patents and know-how.

In addition, the Agreement provides for mutual assistance in the collection of each country’s taxes.

Canada and Germany are to notify each other of the completion of the procedures required for bringing the Agreement into force, and it will enter into force on the day the last notification is received.

The provisions of the Agreement will apply, in the case of withholding tax, from January 1, 2001. In the case of other taxes, the provisions of the Agreement will apply for taxation years beginning after 2000.

Once in force, the new Agreement will replace the existing Agreement, which was signed on July 17, 1981.

___________________

For further information: