Tax Convention Signed Between Canada and Armenia

July 12, 2004

A Convention between Canada and Armenia for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital was signed on June 29, 2004, in Yerevan.

The Convention limits the rate of withholding tax to 5% for dividends between affiliated companies, 15% for dividends in all other cases, 10% for interest, and 10% for royalties.

The Convention will enter into force upon the exchange of diplomatic notes indicating that all necessary measures to give the Convention the force of law in each respective country have been completed. The Convention will have effect, in respect of tax withheld at source on amounts paid or credited to non-residents, as of the beginning of the first calendar year following that in which the Convention enters into force; and, in respect of other taxes, for taxation years beginning after the calendar year in which the Convention enters into force.

For further information contact:

Tax Legislation Division
Phone: 613-369-4016