The new Double Taxation Treaty between Switzerland and Argentina will enter into force on 27 November 2015.
The new treaty will be applicable from 1 January 2015. For taxes withheld at source the relief has become applicable from 2015. The new agreement follows maximum provisions of the previous agreement and satisfies the current international standard on the exchange of information upon request.
According to the new treaty the maximum withholding tax rate for dividends will be 15% and for direct holding of least 25 percent of the capital of the company paying the dividends, the rate will be 10%.
The maximum withholding tax rate for Interest is 12% and that for royalties is 15%. For royalties the withholding tax rate will be 10%, 5% and 3% in certain situations.
