Tax Convention Signed Between Canada and Madagascar
On November 24, 2016, A Convention Between Canada and the Republic of Madagascar for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income was signed. To name a few, the new treaty limits various withholding tax rates with respect to:
- dividends paid to a company that holds directly or indirectly at least 25% of the voting power of the company that pays the dividends (5%);
- all other dividends (15%);
- interest and royalties (10%);
- certain payments of interest (exempt); and
- payments of specific types of royalties (5%).
The Convention will enter into force when both Canada and Madagascar notify each other of the completion of the procedures required by their legislation for the bringing into force of the Convention.