Ottawa, March 27, 2012
The Honourable Jim Flaherty, Minister of Finance, today welcomed Governor General David Johnston’s proclamation of the entry into force of updated tax treaties with Italy and Switzerland.
“These agreements will help prevent tax evasion and double taxation, and will strengthen our tax system,” said Minister Flaherty. “A strong tax base is important to economic growth and prosperity.”
The proclamation gives notice of the entry into force on November 25, 2011 of the Canada-Italy Tax Convention, and the cessation of the previous agreement between the two countries signed in 1977 and modified in 1989. It also gives notice of the entry into force on December 16, 2011 of the protocol amending the 1997 tax convention between Canada and Switzerland.
Tax treaties limit the rates of withholding tax that may be applied in respect of payments to non-residents. The revised Canada-Italy Tax Convention reduces withholding taxes on intercompany dividends to 5% from 15%, on certain royalties to 5% from 10%, and on interest payments to 10% from 15%. The Protocol amending the Canada-Switzerland Tax Convention eliminates withholding taxes for dividends paid to pension or retirement plans.
Canada currently has 89 tax conventions in force. More information on tax treaties can be found on the Department of Finance website.
For further information, media may contact:
Mary Ann Dewey-Plante
Office of the Minister of Finance
Department of Finance
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