Please be advised that the double taxation treaty (DTT) with the protocol signed between Luxembourg and the Czech Republic on March 5, 2013 stipulates the following withholding tax rates (different for dividends compared to previously disclosed information):
Dividends:
- Up to a 0% tax rate is applied if the shares (held for more than one year) in the company are equal or exceed a 10% threshold, otherwise a 10% tax rate is applied
Interest income:
- 0%
The DTT can be found via the following link:
http://www.senat.cz/xqw/webdav/pssenat/original/67928/57153
The treaty will enter into force after the Senate’s approval and when the ratification processes are completed in both countries.
Related Newsflash:
Newsflash Czech Republic – New DTT between Luxembourg and Czech Republic
Impact on investors: The DTT with the protocol signed between Luxembourg and the Czech Republic specifies the tax rates mentioned above and will come into effect after the Senate’s approval and when the ratification processes of the DTT are completed in both countries.