International tax advice

Double Tax Treaties : list of countries

The Tax Treaties specifiy that corporate entities are liable to pay tax in their country of residence (the Treaties contain 'tie-breaker' clauses to resolve cases in which both countries assert residence). If an entity which is resident in one country has a permanent establishment in another country, then the income from the permanent establishment is taxed in the second country. Individual taxation is also calculated on the basis of residence, but in cases where income could be taxed twice, there is either a 'tie-breaker' clause or a provision offsetting tax paid in one country against tax due in the other for the same income. (or an exemption)

Under Tax Treaties, withholding tax on dividends is normally calculated at a lower rate than usual (zero rate can even be applied). Likewise, reduced rates of withholding tax are applied to interest, dividend and royalty payments; Luxembourg does not apply withholding tax to interest in any case). Tax paid in one country is normally allowed as a credit against tax due on the same income in the other country. Luxembourg generally considers income earned abroad exempt.


   
Dividends
Substantial Holdings
Interest
Royalties
  Recipient
%
%
%
%
  Resident corporations
0
0
0
0
  Resident individuals
15
15
10
0
  Nontreaty countries (Nonresident corporations and individuals)
15
15
0
0
  Treaties
Dividends
Substantial Holdings
Interest
Royalties
South Africa
15
5
0
0
Albania
-
-
Germany
15
10
0
5
Argentina
-
-
Armenia
-
-
Austria
15
5
-
0/10
Azerbaïdjan
10
5
10
5/10
Bahreïn
-
-
  Barbuda
-
-
Belgium
15
10
0/15
0
Brazil
25
15
-/15
15/25
Bulgaria
15
5
0/10
5
Canada
15
0/5
0/10
0/10
China, P.R
10
5
0
6/10
  Cyprus
-
-
Korea (Rep. of)
15
10
10
10/15
Denmark
15
5
0
0
United Arab Emirates
10
5
0
0
Spain
15
5
10
10
Estonia
10
5
0/10
5/10
United States of America
15
0/5
0
0
Finland
15
5
0
0/5
France
15
5
10
0
Georgia
10
0/5
0
0
Greece
7.5
7.5
8
5/7
Hong Kong
10
0
0
3
Hungary
15
5
0
0
Mauritius
10
5
0
0
India
10
10
10
10
Indonesia
15
10
10
12.5
Ireland
15
5
0
0
Iceland
15
5
0
0
Israël
15
5
5/10
5
Italy
15
15
10
10
Japan
15
5
10
10
Kazakhstan
5/10
0/10
0/10
  Kuwait
-
-
  Kyrgyzstan
-
-
  Latvia
10
5
10
5/10
  Liban
-
-
Liechtenstein
-
-
  Lithuania
15
5
10
5/10
  Macedonia
-
-
Malaysia
10
0/5
10
8
Malta
15
5
0
10
Morocco
15
10
10
10
Mexico
15
5
0/10
10
Moldova
10
5
0/5
5
Monaco
Mongolia
15
5
0/10
5
Norway
15
5
0
0
Uzbekistan
15
5
0/10
5
  Pakistan
-
-
Netherlands
15
2.5
0/2.5/15
0
Poland
15
5
0/10
10
Portugal
15
15
10/15
10
Qatar
-
-
Czech Republic
15
5
0
0/10
Romania
15
5
10
10
United Kingdom
15
5
0
5
Russia
10/15
10
0
0
San Marino
15
0
0
0
  Serbia and Montenegro
-
-
Singapore
10
5
10
10
Slovak Republic
15
5
0
0/10
Slovenia
15
5
5
5
Sweden
15
0
0
0
Switzerland
15
0/5
0/10
0
  Syria
-
-
Thailand
15
5
10/15
15
Trinidad & Tobago
10
5
0/7.5/10
10
Tunisia
10
10
7.5/10
12
Turkey
20
5
10/15
10
Ukraine
-
-
Vietnam
15
5/10
7/10
10

Membership of 10 new States
The 27th of april 2006, have been approved the Convention avoiding the double taxation of associated companies with the 10 new states :
Czech Republic, Estonia, Cyprius, Lettonia, Lituanie, Hungary, Malta, Poland, Slovenia, Slovakia

The Convention's  aim  is to insure, in a definite time, the  avoidance of double taxation  for European Member States associated companies.

Indeed, double taxation arising from these situations can produce capital flows disturbing  within the EU working.
Source : Administration des contributions directes du Grand-Duché de Luxembourg

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