DTA between Luxembourg and Brunei expected to be entered into force

Posted on Updated on

The Double Taxation Agreement (DTA) between Luxembourg and Brunei is expected to be entered into force on 26 January 2017. The treaty was signed on 14 July 2015. The agreement will be applicable from 1 January 2018 for both countries.

According to the treaty the maximum rate of withholding taxes on dividends, interest, and royalties will be 10%. However, if the beneficial owner of the dividends is a company (other than a partnership) and holds a direct holding of at least 10% of the share capital of the company paying the dividends for an uninterrupted period of at least one year, the treaty provides for a 0% rate.

Luxembourg applies the credit and exemption-with-progression methods for the avoidance of double taxation whereas Brunei applies the credit method for the avoidance of double taxation.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s