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Ottawa, May 8, 1997
1997-045
Tax Convention Signed by Canada and Switzerland
Related document:
Finance Minister Paul Martin today announced that a Convention between Canada and Switzerland for the avoidance of double taxation with respect to taxes on income and on capital was signed on May 5, 1997, at Berne. The Convention was signed on behalf of Canada by the Canadian Ambassador, Réjean Frenette, and on behalf of Switzerland by the Swiss Federal Councillor responsible for Finance, Kaspar Villiger.
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, computer software, patent and know-how.
The Convention will enter into force on the date of the exchange of the instruments of ratification and its provisions will have effect, in the case of the withholding tax, from the first day of January of the year of the entry into force and, in the case of other taxes, for taxation years beginning on or after the first day of January of the year of the entry into force. When in force, the Convention will replace the existing Convention signed on August 20, 1976.
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For further information:
Jean-Marc Déry
Tax Legislation Division
(613) 992-1862
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| Last Updated: 2005-01-04 |
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