Straight Talk
Tax convention between Canada and the Republic of Korea entered into force
The Department of Finance announced that the convention between Canada and the Republic of Korea for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income has entered into force.
The convention was signed on Sept. 5, 2006 and entered into force on Dec. 18, 2006. Under the convention, the following withholding tax rates will have effect on amounts paid or credited to non-residents on or after Jan. 1, 2007:
- 5 per cent for dividends between affiliated companies
- 15 per cent for all other dividends
- 10 per cent for interest
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