Please be advised that Luxembourg and the Czech Republic signed a new double taxation treaty (DTT) with the protocol on March 5, 2013. This DTT will replace the previous 1991 agreement.
The treaty does not specify any new tax rates for dividends and interest income. The new DTT stipulates the change in the exchange of information relating to taxes that include bank information.
The treaty will enter into force after the Senate’s approval and once the ratification process is completed in both countries.
Impact on investors: The new DTT with the protocol signed between Luxembourg and the Czech Republic will improve the exchange of information between tax authorities in Luxembourg and the Czech Republic leading to the reduction of potential income and property tax evasion and fraud.