The double taxation treaty (DTT) and accompanying protocol, signed between Austria and Taiwan in July 2014, entered into force already and will apply to amounts paid on or after 1 January, 2015 in both countries. The treaty will have effect in respect of other taxes levied for periods beginning on or after 1 January, 2015. The maximum withholding tax rates stipulated in the treaty are as follows:
Dividends:
• | 10%, if the beneficial owner of the dividends is a resident of the other territory |
Interest Income:
• | 10 %, if the beneficial owner of the dividends is a resident of the other territory | |
• | 0 %, if interest is paid: | |
- | to the authority administering the other territory, subdivision or local authority or the Central Bank thereof or any financial institution wholly owned or controlled by the other territory; | |
- | in respect of a loan granted, guaranteed or insured by an approved financial institution of the other territory which aims at promoting export; | |
- | on loans made between banks as long as the beneficial owner is a bank and a resident of the other territory. |
The DTT includes provisions for the exchange of information according to international standards. The DTT will be officially published on the homepage of the Republic of Austria (https://www.ris.bka.gv.at/).
Impact on investors: New DTT between Austria and Taiwan became effective as of 1 January, 2015.