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Tax Withholding Rates 2020

Last partial update April 16,2020. Many jurisdictions withhold/deduct tax at source to avoid tax evasion when the recipients of the income are non- residents. The tax withholding rates relate mainly to payment of dividend, interest and royalties. In certain cases the withholding rates also include payments to non-residents from income of rent, services and capital gains. Tax withholding rates from payment of dividend may include reduced/zero withholding rate when the recipient is a "significant shareholder "of the paying company. A "significant shareholder " is generally, not always , defined as a shareholder holding at least 25% of the shares. Under provisions of some tax treaties there are sometimes exemption from tax withholding of interest from central banks or government debentures . Royalties include, in many cases, a comprehensive definition , yet, in some tax treaties there is a different tax withholding rate for film royalties, copyright royalties, patent or trademark royalties. The following tax withholding table presents tax withholding rates for payments of dividend, interest and royalties to non-residents. The tax withholding rates be zero/exempt under tax treaties or the EU directive. Another aspect of tax withholding relates to domestic tax withholding from salaries. Employers generally deduct tax at source when paying their resident employees according to tax tables in each country. The tax withheld is paid by the employers to the tax office on monthly or bi-monthly basis . Tax withholding from salaries is not included in this tax chart. Tax Withholding Table Country Dividend % Interest % Royalties % Australia 30 10 30 Austria 0/27.5 0/27.5 20 Barbados 0/15 0/15 0/15 Belarus 12 10 15 Belgium 30 30 30 Brazil 0 15/25 15/25 Bulgaria 5 10 10 BVI 0 0 0 Canada 25 25 25 China 10 10 10 Chile 35 35 15/30 Colombia 25 15 15 Croatia 12 15/20 15/20 Czech Republic 15 15 15 Denmark 15/27 25 25 Egypt 0 20 20 Estonia 0 0/21 0/10 Finland 20 0 20 Germany 25 0 15 Gibraltar 0 0/10 0 Greece 15 33 25 France 30 0 33.33 Hong Kong 0 0 4.95 Hungary 0 0 0 Iceland 18 10 20 India(1) 0 20 10 Indonesia 20 20 20 Ireland 20 20 20 Israel 25/30 15/20/25 25 Italy 26 12.5/26 30 Jamaica 25/33.3 25/33.3 25/33.3 Korea 20 15.4/20 20 Japan (2) 20.42 20.42 20.42 Latvia 0 5/10 5/15 Libya 0 5 20 Lithuania 15 10 10 Luxemburg 15 0 0 Malaysia 0 15 10 Malta 0 0 0 Morocco 15 10 10 Montenegro 9 9 9 Netherlands 15 0 0 New Zealand 30 15 15 Norway 25 0 0 Poland 19 20 20 Portugal 25 25 15 Romania 5 16 16 Russia 15 20 20 Saudi Arabia 5 5 15 Serbia 20 20 20 Singapore 0 15 10 Slovakia 7/19/35 19/35 19/35 Slovenia 15 15 15 South Africa 15 0 12 Spain 19 19 24 Sweden 30 0 0 Switzerland 35 0 0 Taiwan 20 15/20 20 Thailand 10 15 15 Turkey 15 10 20 UK 0 20 20 Ukraine 15 5/15 15 US 30 30 30 Vietnam 0 5 10 Zambia 15 15 15 Venezuela 0-34 15-34 34 Uzbekistan 10 10 20 Notes to the tax withholding table: (1) India - Rates are before surcharge and cess. (2) Japan � Rates include a 2.1% surtax. Note: The information is for general guidance only. Users of this site are advised to take professional advice before taking practical tax decisions. Please read our Terms of service before entering this site.

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