September 6, 2002
A Convention between Canada and the United Arab Emirates for the avoidance of double taxation and the prevention of fiscal evasion was signed June 9, 2002 in Abu Dhabi.
The Convention limits the rate of withholding tax to 5 per cent for certain non-portfolio dividends, 15 per cent for most other dividend payments, and 10 per cent for interest and royalties. An exemption for certain interest, copyright royalties and royalties in respect of certain computer software, patents and know-how is also provided.
The Convention will enter into force upon the exchange of instruments of ratification between Canada and the United Arab Emirates. In the case of withholding tax, the Convention will apply as of January 1 in the calendar year in which it enters into force. In the case of other taxes, the Convention will apply for taxation years beginning on or after that day.
The full text of the Convention is available on the Department of Finance Canada Web site.
For further information contact Parry Athenaios, Tax Legislation Division, (613) 992-5864.