Tax Convention Signed Between Canada and the Republic of Colombia
November 24, 2008
A Convention between Canada and the Republic of Colombia for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital was signed on November 21, 2008, in Lima.
The Convention limits 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 the Republic of Colombia 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.
For further information contact:
Tax Legislation Division