UK – Algeria double taxation convention signed

The UK and Algeria have signed a first-time comprehensive double taxation convention on 18 February 2015 for the avoidance of double taxation and the prevention of fiscal evasion and tax fraud with respect to taxes on income and on capital

This agreement, which generally follows the Organisation for Economic Co-operation and Development (OECD) Model Double Taxation Convention, is meant to encourage trading and investments between the two countries.

Important features include maximum rates of withholding tax for interest and royalty payments of 7% and 10% respectively.

In addition, rates of withholding taxes for dividends (following the OECD model) are 5% for direct investors and 15% for portfolio investors. The convention also includes the latest OECD exchange of information article.

The Convention will enter into force when both countries have completed their legislative procedures and exchanged diplomatic notes.

More details are available at https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/405602/algeria-uk-dtc.pdf

 

 

Diane Tan |Content manager - current awareness, CCH

Diane Tan is content manager, current awareness at CCH, Wolters Kluwer UK www.cch.co.uk...

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