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Ottawa, November 27, 1995
1995-096
Tax Convention Signed by Canada and the Republic of South Africa
Finance Minister Paul Martin today announced that a Convention between Canada and the Republic of South Africa for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income was signed today at Toronto. The Convention was signed on behalf of Canada by the Minister for International Trade, Roy MacLaren, and on behalf of the Republic of South Africa by the Minister of Industry and Trade, Trevor Manuel.
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 and a 6 per cent rate on copyright royalties, on computer software and on royalties concerning patents and certain types of information.
The Convention will enter into force after Canada and the Republic of South Africa have notified each other of the completion of the procedures required by law for its bringing into force and its provisions will have effect, in the case of the withholding tax, from the first day of the third month following the entry into force and, in the case of other taxes, for taxation years beginning on or after the first day of the third month following the entry into force.
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For further information:
Jean-Marc Déry
Tax Legislation Division
(613) 992-1862
For copies of the text of the Convention
Distribution Centre
(613) 995-2855
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| Last Updated: 2002-11-26 |
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