Tax convention signed between Canada and the republic of Serbia

April 30, 2012


A Convention between Canada and the Republic of Serbia for the avoidance of double taxation with respect to taxes on income and on capital was signed on April 27, 2012, in Belgrade.

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

Consistent with the Government's policy announced in Budget 2007, the Convention includes provisions reflecting the standard developed by the Organisation for Economic Cooperation and Development for the exchange of tax information.

The Convention will enter into force once Canada and the Republic of Serbia have notified each other that the procedures required by their domestic laws for the entry into force of the Convention 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 next following the year 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 next following the year in which the Convention enters into force.

For further information contact:

Tax Legislation Division
Phone: 613-369-4016