Germany, Costa Rica To Avoid Double Tax From Jan 1

by Ulrika Lomas, Tax-News.com, Brussels

04 November 2016

German's Finance Ministry on October 24 confirmed that the double tax avoidance treaty between Germany and Costa Rica will apply from January 1, 2017.

The treaty, signed on February 13, 2014, is the first such agreement between Germany and Costa Rica, and contains the OECD standard for exchange of information between the two country's tax authorities.

Withholding taxes on dividends will generally be capped at 15 percent. However, a five percent rate will apply if the recipient of the dividend is a company (other than a partnership) that directly owns at least 20 percent of the paying company's shares.

Withholding tax on interest payments will generally be limited to five percent. Meanwhile, withholding tax on royalty payments will be limited at 10 percent.

TAGS: Finance | tax | double tax agreement (DTA) | tax avoidance | interest | royalties | entertainers | copyright | sportsmen | withholding tax | Costa Rica | Germany | dividends | trade