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Ottawa, December 16, 1997
1997-119
Tax Agreement Signed by Canada and the Republic of Croatia
Related document:
Finance Minister Paul Martin today announced that an Agreement between Canada and the Republic of Croatia for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income was signed on December 9, 1997, at Ottawa. The Agreement was signed on behalf of Canada by the Parliamentary Secretary to the Minister of Foreign Affairs, Ted McWhinney, and on behalf of the Republic of Croatia by Ambassador Zeljko Urban.
The Agreement is patterned to a large extent on the model double taxation convention prepared by the Organisation for Economic Co-operation and Development. Under the Agreement, a general rate of 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, or 25 per cent of the capital of the company paying the dividends. A witholding tax of 15 per cent will apply in all other cases. The rate of the branch tax will be reduced to 5 per cent. A reduced rate of withholding tax of 10 per cent will apply to interest and to royalties.
The Agreement will enter into force after Canada and the Republic of Croatia have notified each other of the completion of the procedures required for its bringing into force. The Agreement's provisions will have effect from the first day of January of the year following the entry into force.
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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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