Canada Signs DTA With Namibia

by Mike Godfrey, Tax-News.com, Washington

30 March 2010

The Canadian government has announced that a convention for the avoidance of double taxation and fiscal evasion with respect to taxes on income and capital was signed with Namibia on March 25, 2010, in Wikndhoe, Namibia.

The convention will provide legal certainty over the taxing rights of the respective countries, ensuring that companies' and individuals' investments and income are not taxed twice. The Convention will also limit the rate of withholding tax to 5% for dividends between affiliated companies, to 15%, for dividends in all other cases, to 10% for interest, and to 10% for royalties.

The Convention will enter into force once Canada and Namibia have notified each other through diplomatic channels that all the necessary measures to give the Convention the force of law in their respective countries have been completed.

In Canada, the Convention will have effect, in respect of tax withheld at source on amounts paid or credited to non-residents, on or after the first day of January in the calendar year following that in which the Convention enters into force; and, in respect of other taxes, for taxation years beginning on or after the first day of January in the calendar year following that in which the Convention enters into force.

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