New DTT with Iceland

Austria
UniCredit Bank Austria AG
Summary: 
New DTT between Austria and Iceland will enter into force on 1 January 2018
Fri, 22/12/2017

 

Austria and Iceland have entered into a new convention for the avoidance of double taxation and the prevension of fiscal evasion with respect to taxes on income and on capital (BGBL 25/2017).

The maximum withholding tax rates stipulated in the treaty are as follows.

Article 10. Dividends
- 5% of the gross amount of the dividends if the beneficial owner is a company (other than a partnership) which holds directly at least 10 per cent of the capital of the company paying the dividends
- 15% of the gross amount of the dividends in all other cases

Article 11. Interest income
- 0% of the gross amount of the interest

The new convention has entered into force and shall have effect in respect of taxes for any fiscal year beginning on / after 1 January 2018.

 

Impact on investors: The new DTT between Austria and Iceland will provide eligible beneficial owners with the possibility to avail of better tax rates