The updated treaty will conform to current Canadian and international tax treaty policies, which is based on the Organisation for Economic Co-operation and Development's (OECD) Model Tax Convention on Income and on Capital. The updated treaty will:
- Further reduce tax barriers in order to encourage trade and investment between Canada and China
- Reduce the rates of withholding taxes that apply on certain cross-border payments
- Eliminate double taxation for individuals and companies doing business or earning income in the other country.
The updated treaty will enter into force once it has been ratified by both countries.
For more information, contact your KPMG adviser.