Global Tax Adviser
December 6, 2011

Canada-Italy Treaty Takes Effect in 2011

Paul Hickey
Toronto, National Tax Centre

The Canada-Italy tax treaty entered into force on November 25, 2011. The treaty, which was signed on June 3, 2002, will affect Canadian withholding taxes on amounts paid or credited to non-residents on or after January 1, 2011. The treaty will apply to other taxes for taxation years beginning on or after January 1, 2011.

Under the treaty, withholding tax is limited to:

• 5% for dividends between affiliated companies and 15% for dividends in all other cases
• 10% for interest (with a few specific exceptions)
• 10% for royalties, except for the use of (or right to use) computer software or any other patent or information concerning industrial, commercial or scientific experience, which are limited to 5%.

For more information, contact your KPMG adviser.

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