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Ottawa, April 26 , 1995
1995-036
Tax Convention Signed by Canada and the Republic of Latvia
Finance Minister Paul Martin today announced that a Convention between Canada and the Republic of Latvia for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital was signed today at Ottawa. The Convention was signed on behalf of Canada by the Minister of Foreign Affairs, André Ouellet, and on behalf of the Republic of Latvia by the Minister of Foreign Affairs, Valdif Birkavf.
The Convention is patterned to a large extent on the model double taxation convention prepared by the Organisation for Economic Co-operation and Development. Under the Convention, a general rate of withholding tax of 5 per cent will apply to dividends paid to a parent company and on branch profits and of 10 per cent on interest and royalties. The rate of withholding tax on other dividends is set at 15 per cent. The Convention also provides for a number of exemptions in the case of interest.
The Convention will enter into force after Canada and the Republic of Latvia have notified each other of the completion of the procedures required by law for its bringing into force and its provisions will have effect from the first day of January of the calendar year next following that in which the later of the notifications has been given.
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For further information:
Jean-Marc Déry
Tax Legislation Division
(613) 992-1862
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| Last Updated: 2002-11-26 |
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