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Ottawa, December 18, 1995 Tax Agreement Signed by Canada and the United Republic of TanzaniaFinance Minister Paul Martin today announced that an Agreement between Canada and the United Republic of Tanzania for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital was signed on December 15, 1995, at Dar Es Salaam. 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 20 per cent will apply to dividends paid to a parent company and on branch profits (12 per cent in the case of Tanzania), of 15 per cent on interest, of 20 per cent on royalties and management and professional fees and of 15 per cent on periodic pension and annuity payments. The rate of withholding tax on other dividends is set at 25 per cent. The Agreement also provides for a limited number of exemptions in the case of interest. The Agreement will enter into force upon an exchange of instruments of ratification and its provisions will have effect from the first day of January of the calendar year following its entry into force. ___________________ Jean-Marc Déry For copies of the text of the Agreement: |
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