In Focus – A Look Forward: 2022 Tax Changes Impacting Global Portfolio Investors

February 04, 2022
In this edition of In Focus, we provide a comprehensive list and breakdown of 2022 local law changes impacting tax rates, documentation, and market procedures, as well as the newly ratified DTATs and protocols that result in a tax rate impact to our clients.

The impact of the on-going pandemic can be seen in the limited domestic legislation implementing rate changes going into effect throughout 2021 and into early 2022. There was, however, an increased volume of Double Taxation Avoidance Treaties (DTATs) ratified throughout 2021 when compared to 2020. 2022 sees more than double the volume of DTATs becoming effective when compared to 2021.

Local Law Tax Changes

 

Argentina (Status: Effective – Retroactive to January 1, 2021)

Argentina permanently extended the 7 percent dividend withholding tax rate.

Investor Impact: Investors should be aware of the permanent extension of the statutory 7 percent dividend withholding tax rate.

Bahrain (Status: Effective January 1, 2022)

Bahrain increased the Value Added Tax (VAT) rate from 5 percent to 10 percent. In Bahrain, Financial Services are largely exempt from VAT, however VAT does apply to all fees, commissions, and charges of services provided by Bahrain Bourse and Bahrain Clear.

Investor Impact: Investors in Bahrain should be aware of the increase in VAT to fees, commissions, and charges of service provided by Bahrain Bourse and Bahrain Clear. 

Botswana (Status: Effective July 1, 2021)

On July 1, 2021, the Income Tax Act was amended to increase the dividend withholding tax rate from 7.5 percent to 10 percent.

Investor Impact: Investors not eligible for the dividend withholding tax exemption on dividends paid by an International Financial Services Centre company should be aware of the increased dividend withholding tax rate.

Brazil (Status: Indefinitely postponed)

In September the House of Deputies approved a measure to introduce a 15 percent withholding tax on dividends, increased from the current withholding tax rate of 0 percent. Due to a stalemate between Brazil’s House of Deputies and Senate the proposed measures remain outstanding.

Investor Impact: Due to the congressional stalemate, there is no change to the existing 0 percent withholding tax rate and therefore no impact to investors.

Cambodia (Status: Effective January 1, 2022)

Cambodia introduced a 20 percent Capital Gains Tax (CGT) in 2021, which went into effect on January 1, 2022. 

Investor Impact: Investors should be aware of the newly introduced 20 percent CGT, which went into effect on January 1, 2022.

China (Status: Effective – November 7, 2021 through December 31, 2025)

Pursuant to Circular Caishui [2018] No.108 issued on November 22, 2018, bond interest derived by foreign institutional investors from the China onshore bond market was temporarily exempt from China corporate income tax and VAT for a three-year period from November 7, 2018 to November 6, 2021.

On October 27, 2021, the China State Council announced that the temporary exemption period is further extended to December 31, 2025, Circular Caishui [2021] No. 34 documenting this extension was issued on November 26, 2021.

Investor Impact: Foreign institutional investors will continue to be exempt from China income withholding tax and VAT through December 31, 2025.

Cyprus (Status: Effective)

Investors domiciled in countries on the European Union's (EU) List of Non-Cooperative Jurisdictions will be subject to a 17 percent withholding tax on dividend income where the investor holds more than 50 percent of the voting rights or the share capital of the dividend paying company. 

Investors domiciled in Non-Cooperative Jurisdictions will be subject to a 30 percent withholding tax on interest income from Cypriot bonds.

Withholding tax will not apply to dividends and interest from securities listed on a recognized stock exchange.

Investor Impact: Investors domiciled in countries on the EU's List of Non-Cooperative Jurisdictions will be subject to a withholding tax on income from Cypriot equities and bonds that are not listed on a recognized stock exchange.

Czech Republic (Status: Effective – Retroactive to January 1, 2021)

Non-residents investing in Czech Eurobonds issued on or after January 1, 2022 will continue to benefit from a withholding tax exemption provided certain requirements are met.

Investor Impact: Eligible investors may need to provide documentation in order to avail of the local law exemption on interest from Czech Eurobonds issued on or after January 1, 2022, however the market has not yet issued such documentation so it is expected that the interest will be paid at gross.

Denmark (Status: Effective July 1, 2021)

Danish dividends paid to certain investors domiciled in countries on the EU’s list of Non-Cooperative Jurisdictions will be subject to a 44 percent dividend withholding tax rate.

Investor Impact: Investors domiciled in a country on the EU's list of Non-Cooperative Jurisdictions that meet certain holding criteria will be subject to a higher dividend withholding tax rate.

Denmark (Status: Effective January 1, 2022)

Danish investment funds will no longer avail of a dividend withholding tax exemption on their investments in Danish equities. Danish funds will be subject to a 15 percent withholding tax on Danish dividend income. Previously issued Frikorts to Danish funds will be no longer be valid.

Non-resident charitable funds meeting certain requirements will be eligible to file for a full dividend withholding tax refund. The assessment of eligibility will be performed by the Danish Tax Agency based on a comparability analysis between local and non-resident charitable funds. Provided payments are within the prescribed statute of limitations period, reclaims can be filed for payments on or after April 14, 2018.

Investor Impact: Danish funds investing in local equities will be subject to a 15 percent withholding tax on Danish dividend income. Non-resident charitable funds may be eligible for a dividend withholding tax exemption by filing a tax reclaim.

Ecuador* (Status: Effective November 29, 2021)

Ecuador removed the exemption on interest paid from Government debt and instituted a 25 percent withholding tax rate (increased to 35 percent if the investor is located in a tax haven jurisdiction).

Additionally, Ecuador modified the taxation of gains resulting from the sale of shares in Ecuadorian entities by implementing a flat rate of 10 percent; previously the gains were subject to income tax based on a progressive table.

Investor Impact: Investors into impacted Ecuadorian securities should be aware of the rate changes. 

 

*Detail regarding the rate change in Ecuador is provided for completeness, as BBH does not support a custody tax service in this market.

 

France (Status: Effective January 1, 2022)

The French Finance Law 2018 reduced the statutory withholding tax rate for dividends paid to non-resident non-individual beneficial owners from 26.5 percent to 25 percent effective January 1, 2022.

Investor Impact: Non-individual investors should be aware that French Finance Law 2018 reduced the statutory dividend withholding tax rate.

Ghana (Status: Effective January 1, 2022)

The CGT exemption with respect to gains resulting from the sale of securities listed on the Ghana Stock Exchange expired on December 31, 2021. Beginning January 1, 2022, such gains will be subject to a rate of 25 percent.

Investor Impact: Non-resident investors will be subject to CGT on gains resulting from the sale of securities listed on the Ghana Stock Exchange.

Guinea (Status: Effective January 1, 2022)

The CGT rate on the sale of shares and debt by non-resident investors increased from 10 percent to 15 percent.

Investor Impact: Non-resident investors should be aware of the increased withholding tax rate on CGT.

Hong Kong (Status: Effective August 1, 2021)

Beginning on August 1, 2021, stock transfer in Hong Kong became subject to an increased stamp duty rate of 0.13 percent, previously the rate was 0.1 percent.

Investor Impact: The transaction cost for Hong Kong stock trades increased.

India (Status: Effective April 1, 2021)

Under the 2021/2022 budget issuing companies can withhold tax from dividends paid to Foreign Portfolio Investors (FPIs) at the treaty rate when the treaty rate is lower than 20 percent. Further, requirements for sovereign wealth and pension funds were relaxed to allow such funds to qualify for the local law exemption on dividends, interest, and capital gains derived from infrastructure investments.

The final bill clarified that the concessional tax rate of 5 percent will continue to apply to interest income from qualifying debt securities received by FPIs.

Investor Impact: Investors may benefit from some of the approved budget provisions which include enhanced Indian dividend cash flow, investment in certain business sectors and continuation of the 5 percent concessional interest withholding tax rate.

Indonesia (Status: Effective August 2, 2021)

The Indonesian Government reduced the statutory withholding tax rate from 20 percent to 10 percent on income received by non-resident investors from Indonesian bonds.

Investor Impact: Non-residents investing in Indonesian bonds are now subject to a reduced withholding tax rate on interest income.

Indonesia (Status: Effective April 1, 2022)

In October 2021, the Indonesian President signed into law an increase to the VAT rate from 10 percent to 11 percent beginning April 1, 2022. VAT may apply to non-resident investors on brokerage commissions and stock exchange fees.

Investor Impact: The cost of investment in Indonesian securities by non-resident investors may increase.

Japan (Status: Effective April 1, 2021)

The 2021 tax reform bill introduced new procedures allowing non-resident investors to submit documentation related to relief under the Japanese Bond Income Tax Exemption Scheme (J-BIEM), Japanese Government Bonds (JGBs), and DTATs (including supporting documentation) electronically. 

Investor Impact: Non-resident investors should be aware of the ability to submit certain documentation electronically in Japan.

Malaysia (Status: Effective January 1, 2022)

Malaysia increased the stamp duty rate with respect to contract notes for the transfer of Malaysian shares listed on Bursa Malaysia from 0.1 percent to 0.15 percent or Malaysia ringgit (MYR) 1.50 for every MYR 1,000 or fractional part of MYR 1,000 of the value of the contract notes. The stamp duty is to be capped at MYR 1,000.

The 6 percent service tax charged on brokerage services for the trading of listed Malaysian shares, which was put into effect on September 1, 2018 was abolished.

Investor Impact: The maximum amount of stamp duty payable on listed Malaysian share trades will be capped at MYR 1,000.

Mexico (Status: Effective December 24, 2021)

The Mexican Government expanded the scope of tax incentives, providing an exemption on qualifying corporate bonds held by non-resident investors. Local providers are seeking additional clarification from Tax Authority regarding specific securities eligible for the benefit.

Investor Impact: Eligible investors are encouraged to provide the relevant documentation to avail of local law exemption on corporate bonds.

Nigeria (Status: Effective January 1, 2022)

The temporary exemption on interest payments from Government bonds has expired. Beginning January 1, 2022, non-resident investors receiving Nigerian sourced interest income from corporate bonds will be subject to a withholding tax rate of 10 percent.

Bonds issues by the Federal Government of Nigeria remain exempt. Further clarity is being sought in the market to determine whether interest payments from non-Federal Government bonds will also be exempt.

Investor Impact: Non-resident investors will be subject to withholding tax on interest from corporate bonds and certain Government bonds due to the expiration of the exemption.

Nigeria (Status: Effective January 1, 2022)

The Finance Act of 2022 introduced a CGT of 10 percent on the sale of securities worth Nigerian naira 100 million or greater (USD 240,000). 

The following exemptions apply: proceeds from the sale of securities that are reinvested within the same year (any portion not re-invested will be subject to CGT), securities lending transactions, and gains from the disposal of Government securities.

Investor Impact: Non-resident investors should be aware of the newly introduced CGT and corresponding compliance obligation.

Pakistan (Status: Effective July 1, 2021)

The CGT rate for securities issued after July 1, 2016 has been reduced from the previous rate of 15 percent to 12.5 percent for non-resident investors holding filer status. Non-resident investors who do not appear on the Active Taxpayers List (ATL) are subject to a 25 percent CGT rate (double the current filer rate) from the previous 30 percent rate. 

Dividends received from Bagasse and Biomass based co-generated power projects are subject to a 7.5 withholding tax rate. Specie dividends under Section 236S are now subject to a 15 percent withholding tax rate. Specie dividends are defined as the shares of a company (either listed or unlisted) which are held as investment by the issuing company but are later distributed to entitled shareholders of that company. 

Investor Impact Non-resident investors are impacted with respect to withholding tax on dividends and other provisions under the approved Finance Bill.

Philippines (Status: Effective Retroactive to January 1, 2021)

The withholding tax on dividends, interest, and capital gains from corporate bonds paid to non-resident corporations decreased from 30 percent to 25 percent. Capital gains from Philippines stocks not traded on the Philippines exchange is subject to a final withholding tax at 15 percent.

Investor Impact Non-resident foreign corporations may benefit from the lower withholding tax with respect to their investment income from the Philippines.

Philippines (Status: Effective March 31, 2021)

The Philippines Bureau of Inland Revenue (BIR) has updated and issued guidelines on the procedure and documentation requirements for application of DTAT benefits by non-resident investors.

Investor Impact Non-resident investors should prepare their DTAT relief application according to the new guidelines.

Poland (Status: Effective January 1, 2022)

Recent amendments to Polish tax law introduce the “pay and refund system.”

Further, the amendments provide that non-resident investors will not be subject to the two million Polish zloty income (approximately $500,000 USD) monitoring threshold unless the investor is affiliated with the issuer. Interest and discount from treasury bonds will potentially be exempt from withholding tax. The definition of beneficial ownership will change, which may result in an update to the beneficial owner declaration.

Investor Impact Non-resident investors will not be subject to the two million Polish zloty income monitoring threshold unless the investor is affiliated with the issuer. Interest and discount from treasury bonds will potentially be exempt from withholding tax. The definition of beneficial ownership will change, which may result in an update to the beneficial owner declaration.

Russia (Status: Effective August 2, 2021)

Effective August 2, 2021, disclosed non-resident individuals are exempt from withholding tax on interest from Russian Government bonds.

Investor Impact Disclosed non-resident individuals are exempt from withholding tax on interest from Russian Government bonds.

Russia (Status: Effective January 1, 2022)

Interest from qualifying Russian corporate bonds issued on or after January 1, 2017 are eligible for the reduced statutory withholding tax rate of 15 percent.

Investor Impact Interest from qualifying Russian corporate bonds issues on or after January 1, 2017 are eligible for the reduced statutory withholding tax rate.

South Korea (Status: Effective January 1, 2022)

South Korea introduced amendments to clarify the criteria for determining whether an Overseas Investment Vehicle (OIV) is the beneficial owner of Korean source income.

Investor Impact: OIVs and their investors should be aware of the new rules.

Tanzania (Status: Effective July 1, 2021)

The Revenue Authority introduced an exemption on interest payments made from Government bonds (of not less than three years) issued and listed on the Dar es Salaam Stock Exchange (DSE) as of July 1, 2021.

Investor Impact: Investors in qualifying Tanzanian Government bonds should be aware of the exemption.

Trinidad and Tobago* (Status: Effective January 1, 2022)

The statutory withholding tax rate on dividend payments to non-residents was reduced from 10 percent to 8 percent.

Investor Impact: Non-resident investors should be aware of the reduction in the statutory withholding tax rate for dividends.

*Detail regarding the rate change in Trinidad and Tobago is provided for completeness as BBH does not support a custody tax service in this market.

Turkey (Status: Effective December 22, 2021)

Pursuant to Presidential Decree No. 4936, non-resident investors are now subject to a 10 percent withholding tax rate on Turkish sourced dividends, which has been reduced from the previous withholding tax rate of 15 percent.

Additionally, there is a temporary exemption on interest income and capital gains derived by Government bonds and treasury bills issued by the Ministry of Finance and Treasury and lease certificates issued by asset leasing companies established under Law No. 4749.

Investor Impact: Non-resident investors should be aware of the reduction in the statutory withholding tax rate for dividends and the temporary exemption on interest income and gains derived by Government bonds, Ministry of Finance and Treasury treasury bills, and certain lease certificates.

Zimbabwe (Status: January 1, 2022)

As part of the 2022 national budget, the CGT rate for non-resident investors on the sale of shares sold on the Zimbabwe Stock Exchange increased. For shares held for a period of at least six months the rate increased from 1 percent to 1.5 percent. For shares held for less than six months the rate increased from 1 percent to 2 percent. 

Investor Impact: Non-resident investors are subject to a higher capital gains tax rate for listed securities sold on the Zimbabwe Stock Exchange.

Double Taxation Avoidance Treaty Changes

Note: The list of treaties provided below does not cover all treaty changes that became effective on January 1, 2022,
but only those that resulted in a change to the withholding tax provisions.

Contracting
Countries

Protocol/
Treaty/
Termination

Dividend
Rate
Interest
Rate
Capital
Gains
Rate 
Investor Impact 
Albania/
Israel
Protocol  15%

5% (37)
10%

0% (2)
0%
Taxed in market
of investment
(18, 25)
Albanian investors investing in Israeli equities and short-term bonds.

Israeli investors investing in Albanian equities.
Albania/
Kosovo
Protocol  Increased withholding tax rate from 0% to 8%
5% (37)
No change to existing DTAT rate of 10%
 
No change to existing
DTAT rates of 0% and
taxed in the market
of investment (18, 22)
Statutory withholding tax rates for dividends are lower or equal to protocol rates. 
Andorra/
San Marino* 
Treaty 5%
0% (43)
0% Taxed in market
of investment
(18, 23, 26) 
Andorran investors investing in San Marino bonds. 
* Effective December 31, 2021
Argentina/
Qatar
Treaty  15%
10% (41)
5% (1)
12%
0% (1)
15%
10% (41)
5% on publicly listed (1)

Taxed in market
of investment (22)
Statutory withholding tax rates are lower or equal to treaty rates. 
Armenia/
Malta
Treaty  10%
5% (37)
5% 0%
Taxed in market
of investment (23)
Maltese investors investing in Armenian bonds. 
Armenia/
Singapore*
Treaty  5%
0% (2, 40, 41)
5%
0% (2)
0% Singaporean Government entities investing in Armenian securities. 

Singaporean investors investing in Armenian bonds. 
*Effective Date January 1, 2022 in Armenia and in Singapore with respect to withholding taxes. January 1, 2023 in Singapore relating to all other matters.
Austria/
Ukraine
Protocol 15%
5% (31)
5%
0% (2)
No change to existing
DTAT rates of 0% and
taxed in the market of
investment (18, 19)
Austrian investors investing in Ukrainian corporate bonds.

Ukrainian investors investing in Austrian equities. 
Azerbaijan/
Spain 
Treaty  10%
5% (29)
8%
0% (2)
Taxed in the
market of
investment (22) 
Azerbaijani investors investing in Spanish securities. 

Spanish investors investing in Azerbaijani bonds. 
Bahrain/
Switzerland
Treaty  15%
5% (31)
0% (2, 9)
0% 0% 
Taxed in the
market of
investment (22) 
Bahraini investors investing in Swiss securities. 
Bangladesh/
Czech
Republic 
Treaty  15%
10% (37)
10%
0% (2)
0%
Taxed in the
market of
investment (22)
Bangladeshi investors investing in Czech securities.

Czech investors investing in Bangladeshi securities.
Belarus/
Spain
Treaty  10%
5% (31)
0% (38)

5%
0% (2, 9, 13)
0%
Taxed in the
market of
investment (22)
Belarusian investors investing in Spanish securities.

Spanish investors investing in Belarusian securities.
Botswana/
Luxembourg
Treaty  10%
5% (41)
15%
7.50%
0% (2)
15%
0% Botswanan investors investing in Luxembourg equities.

Luxembourg investors receiving interest income on bonds from non-International Financial Service Centres.
 
Brazil/
Switzerland
 Treaty

15 percent
10 percent (32)

 

0% (6, 9)
0%
Taxed in the
market of
investment (18)
Brazilian investors investing in Swiss securities.

Swiss investors investing in Brazilian bonds. 
Brazil/
United
Arab
Emirates (UAE) 
Treaty  15%
5% (1)

15%
0% (1)
5%
Taxed in the
market of
investment
UAE investors receiving interest income on Brazilian bonds. 
Bulgaria/
Netherlands 
Treaty  15%
0% (9, 31)
0% (2, 5, 9, 12) 0%
Taxed in the
market of
investment (27)
Bulgarian pension funds investing in Dutch equities. 
Cabo
Verde/
Spain 
Treaty  10%
0% (41)
5%
0% (1, 5, 9, 13, 14)
0%
Taxed in the
market of
investment (22)
Cabo Verdean investors investing in Spanish securities.

Spanish investors investing in certain Cabo Verdean bonds.
Cambodia/
South
Korea 
Treaty  10% 10%
0% (2)
0%
Taxed in the
market of
investment (22)
Cambodian investors investing in South Korean securities.

South Korean investors investing in Cambodian securities.
Chad/
Turkey
Treaty 15%
10% (31)
10%
10% Unknown  Turkish investors investing in Chadian securities. 
China/
Spain 
Treaty  5% (37)
0% (2)
10%
0% (2)
0%
Taxed in the
market of
investment (22)
Chinese investors investing in Spanish equities. 
Colombia/
Italy
Treaty  15%
5% (9, 39)
10%
5% (3, 7, 9)
0% (2)
Taxed in the
market of
investment (22)
10% (34)
5% (9)
Colombian investors investing in Italian equities.  
Costa Rica
/UAE
Treaty  15%
5% (39)
0% (2, 9)
5% (48)
10% (49)
0% (2, 9)
0%
Taxed in the
market of
investment (24)
UAE eligible investors investing in Costa Rican bonds. 
Denmark/
Trinidad &
Tobago
Treaty Termination  Denmark 27%
Trinidad &
Tobago
10%
Denmark
0%
Trinidad &
Tobago 15%
Denmark
0%
Trinidad &
Tobago 0%
Statutory rates apply due to treaty termination. 
Egypt/
UAE
Treaty  10%
5% (32)
0% (1)
10%
0% (1)
0%
Taxed in the
market of
investment (16)
The Government of the UAE investing in Egyptian securities.

UAE investors investing in Egyptian bonds. 
Estonia/
Germany 
Protocol 15%
5% (37)
No change from
existing DTAT rate of 10%
0%
Taxed in the
market of
investment (23)
Estonian investors investing in German equities. 
Germany/
Ireland 
Protocol  No change to existing
DTAT rate of 15%
Modifies application
of 5% (36)
No change from
existing DTAT rate of 0%
0%
Taxed in the
market of
investment (21)
Irish investors investing in German equities.

German investors investing in Irish corporate bonds.  
Germany/
Singapore 
Protocol 10%
15% (46)
0% 0%
Taxed in the
market of
investment (27)
Singaporean investors investing in German equities. 
Germany/
UAE 
Treaty Termination  Germany 26.38%
UAE 0%
Germany 0%
UAE 0%
Germany 0%
UAE 0%
Statutory rates apply due to treaty termination.
Georgia/
Hong Kong*
Treaty 5% 0% (2) 
0%
Taxed in the
market of
investment (24)
Statutory withholding tax rates are lower or equal to treaty rates.
*Effective April 1, 2022 in Hong Kong    
Georgia/
Japan 
Treaty  5% 5%
0% (2, 5)
0%
Taxed in the
market of
investment (24)
Georgian investors investing in Japanese equities and certain bonds. 
Greece/
Sweden
Treaty Termination  Greece 5%
Sweden 30%
Greece 0%
Sweden 0%
Greece 0%
Sweden 0%
Statutory rates apply due to treaty termination.
Hungary/
Iraq
Treaty  10% 10%
0% (2)
0%
Taxed in the
market of
investment
(18, 19)
Hungarian investors investing in Iraqi bonds.

Individual Iraqi investors investing in Hungarian securities.
Hungary/
Kyrgyzstan
Treaty  10%
5% (15)
5%
0% (2, 5)
0%
Taxed in the
market of
investment (22)
Individual Kyrgyzstani investors investing in Hungarian equities. 
Indonesia/
Singapore
 Treaty

No change to
prior DTAT
rates of
15%
10% (40)

No change
to prior DTAT
rates of
10%
0% (2)

0%
Taxed in the
market of
investment

(22, 33)

Indonesian investors investing in certain Singaporean bonds.

Singaporean investors investing in Indonesian equities.
Indonesia/
UAE
Treaty

No change to
prior DTAT
rates of
10%
0%(2)

7%
0 (2, 5)

0%
Taxed in the
market of
investment (24)

UAE investors investing in Indonesian securities.
Italy/
Jamaica 
Treaty  10%
5% (41)
10%
0% (2, 5)

Taxed in the
market of
investment (22) 
Italian investors investing in Jamaican securities. 

Jamaican investors investing in Italian securities. 
Italy/
Mongolia 
Treaty 15%
5% (32)
10%
0% (2)
0%
Italian investors investing in Mongolian equities and corporate bonds.

Mongolian investors investing in Italian securities.
Japan/
Peru
Treaty  10% 10%
0% (2, 5)
0%
Taxed in the
market of
investment (22, 24)
Peruvian investors investing in Japanese securities. 
Japan/
Serbia 
Treaty  10%
5% (37)
10%
0% (2)
0% (24)  Japanese investors investing in Serbian securities.

Serbian investors investing in Japanese equities and certain bonds. 
Japan/
Spain 
Treaty  5%
0% (9)
0% 0%
Taxed in the
market of
investment (22)

Japanese investors investing in Spanish securities. 

Spanish investors investing in Japanese equities and certain bonds.

To avail of these provisions the investor must satisfy the "qualified person" provisions of the DTAT.
Japan/
Uruguay
Treaty  10%
5% (33)
10%
0% (2, 15)
0%
Taxed in the
market of
investment (24)
Uruguayan investors investing in Japanese securities. 
Jordan/
Singapore
Treaty  8%
5% (31)
0% (2)
5%
0% (2)
0%
Taxed in the
market of
investment (27)
Singaporean investors investing in Jordanian bonds. 
Kosovo/
Latvia 
Treaty  10%
0% (35)
10%
0% (2, 5)
0%
Taxed in the
market of
investment (25)
The Latvian Government and central bank investing in Kosovar bonds.  
Kosovo/
Lithuania 
Treaty  15%
0% (35)
10%
0% (53)
0%
Taxed in the
market of
investment (21)
Statutory withholding tax rates are lower or equal to treaty rates.
Kosovo/
Netherlands
Treaty  15%
0% (9, 35)
10%
0% (2, 9)
0% Kosovar companies holding 10% of the paying company and Kosovar pension funds investing in Dutch equities.

The Dutch Government, central bank, and Dutch pension funds investing in Kosovar bonds.
Lesotho/
Mauritius*
Treaty  10% 10% 0%
Taxed in the
market of
investment (25)
Statutory withholding tax rates are lower or equal to treaty rates.
*Effective July 1, 2021 in Mauritius and April 1, 2022 in Lesotho
Liechtenstein/
Netherlands
Treaty  15%
0% (9, 33, 50)
0% 0%
Taxed in the
market of
investment (28)
Liechtensteiner companies holding 10% of the paying company and Liechtensteiner pension funds investing in Dutch equities. 

Note: the exemption will not apply where the payment is made by or to a Collective Investment Vehicle.
Luxembourg/
Russia 
Protocol 15%
5% (4, 9)
15%
5% (47)
0% (4, 8, 9)
No change
to existing DTAT
rates of 0% and
taxed in the
market of
investment (10, 21)
Lux insurance related and Lux pension funds investing in Russian securities.

Russian insurance related and Russian pension funds investing in Lux equities.
Morocco/
Rwanda
Treaty  8% 10%
0% (2)
0%
Taxed in the
market of
investment (19)
Moroccan investors investing in Rwandan securities.

Rwandan investors investing in Moroccan equities.
Netherlands/
Russia
Treaty Termination   Netherlands 15%
Russia 15%
Netherlands 0%
Russia 15%
0% (51)
Netherlands 0%
Russia 0%
Statutory rates apply due to treaty termination.

Netherlands/
Ukraine
Protocol

No change to
existing DTAT
rates of 15% /
5% (37) / 0% (9)

5% /
0% (9)

No change
to existing
DTAT rates
of 0% and 
taxed in the
market of
investment (18, 20)


Dutch pension fund investors investing in Ukrainian corporate bonds.

Ukrainian investors investing in Dutch equities.

Niger/
UAE
Treaty  0% 0% 0%
Taxed in the
market of
investment (20)
UAE investors investing into Nigerien equities. 
Portugal/
Sweden 
Treaty Termination  Portugal 25% (52)
Sweden 30%
Portugal 0%
(52, 54)
Sweden 0%
Portugal 0%
Sweden 0%
Statutory rates apply due to treaty termination. 
Saudi Arabia/
Switzerland
Treaty  15%
5% (2, 9, 31)
5%
0% (2,9)
0%
15% (43)
Taxed in the
market of
investment (22)
Saudi Arabian investors investing in Swiss securities. 
Saudi Arabia/
Taiwan
Treaty  12.50% 10%
0% (6)

0%
Taxed in
the market of
investment (19) 

Saudi Arabian investors investing in Taiwanese securities. 
Serbia/
Singapore
Treaty  10%
5% (41)
0% (2)
10%
0% (2)
0%
Taxed in the
market of
investment (22)
Singaporean investors investing in Serbian securities.  
Slovenia/
Sweden
Treaty  15%
5% (41)
5%
0% (2)
0%
Taxed in the
market of
investment (22)
Slovenian investors investing in Swedish equities.

Swedish investors investing in Slovenian equities.
South Korea/
Vietnam 
Protocol No change to existing DTAT rate of 10% No change to existing DTAT rates of 10%
0% (2)
0%
Taxed in the
market of
investment (22, 44)
Changes only to the CGT provisions.  
Taiwan/
United
Kingdom 
Protocol No change to DTAT rate of 10% (11)
introduces 15% (17)
No change to
DTAT rate of 10%
0%
Taxed in the
market of
investment (21)
Taiwanese investors on property income distributions. 

UK investors investing in Taiwanese securities.
Turkey/
Venezuela
Treaty  10%
5% (41)
10%
0% (2)
0%
Taxed in the
market of
investment (25, 45)
Turkish investors investing in Venezuelan equities and corporate bonds. 

1

Governments of the contracting states.

2

Governments and central banks of the contracting states.

3

Statutory Body.

4

Government insurance.

5

Loans guaranteed by Governments and/or central banks of the contracting states.

6

Central banks.

7

Funding Agency.

8

Paid by Government, corporate or Eurobonds listed on a registered stock exchange.

9

Pension funds.

10

Derived from pension funds.

11

Payments made from Real Estate Investment Trusts (REITs) to pension funds.

12

Loans granted by banks.

13

Financial institutions unrelated to the payer.

14

Interest is in connection with loans on industrial, commercial, or scientific equipment.

15

Paid between financial institutions.

16

Gains from the sale of shares other than those on a recognized stock exchange.

17

For distributions made from REITs.  

18

Gains derived from real property.

19

Gains from the sale of shares of which principally consists of real property.

20

Gains from the sale of shares which derive income from real property and are not listed on a recognized exchange.

21

Gains from the sale of shares which derive 50 percent or more of their income from real property and are not listed on a recognized exchange.

22

Gains from the sale of shares which derive 50 percent or more value directly or indirectly from real property in the contracting state.

23

Gains derived from the sale of shares which derive 50 percent of its value from real property during the prior year.

24

Gains from shares that derive 50 percent or more from immovable property at any time during the prior 365-day period and are not traded on a recognized exchange.

25

Gains from shares that derive 50 percent or more from immovable property at any time during the prior 365-day period preceding the sale.

26

Gains from the sale of moveable property attributable to a business within the 365-day period preceding the sale.

27

Gains from the sale of share where 75 percent or more of the value comes from immoveable property during the prior year and the shares are not traded on a recognized exchange.

28

Gains from the sale of share where 75 percent or more of the value comes from immoveable property during the prior 365-day period  and the shares are not traded on a recognized exchange.

29

Qualifying resident companies directly holding 5 percent of the capital of the paying company.

31

Investor is a company, other than a partnership, which holds directly/indirectly at least 10 percent of the paying company.

32

Investor is a company, other than a partnership, which holds at least 10 percent of the paying company during the prior year.

33

Investor is a company that directly owned 10 percent or more of the paying company throughout a 183-day period.

34

Seller owned directly or indirectly 10 percent or more of the capital in the prior 365-day period.

35

Investor is a company that directly holds 10 percent of the capital of the paying company through a 365-day period including the dividend pay date.

36

A company, other than a partnership or a German Real Estate Investment Trust Company, which holds directly at least 10% of the capital of the paying company throughout a 365-day period (including the dividend pay date).

37

Investor is a company, other than a partnership, which holds at least 10 percent of the paying company and invested at least EUR 1.5 million in the share capital of the payer company at the time the dividends are paid.

38

Investor is a company, other than a partnership, which holds at least 10 percent of the paying company and the holding represents EUR 1 million.

39

Investor is a company, other than a partnership, which holds at least 20 percent of the capital of the paying company for the 365-day period prior (including dividend payment date).

40

A company that invested at least USD 300,000 in the share capital of the paying company.

41

Investor is a company, other than a partnership, which holds at least 25 percent of the paying company.

42

Investor is a company, other than a partnership, which holds at least 25 percent of the paying company for the 365-day period prior (including dividend payment date).

43

Gains from the sale of shares where the investor held directly or indirectly at least 10 percent of the capital of the paying company.

44

Gains from the sale of shares where the investor held directly or indirectly at least 15 percent of the capital of the paying company.

45

Gains from the sale of shares where the investor held directly or indirectly at least 50 percent of the capital of the paying company.

46

The paying company is a Real Estate Investment Company or Trust.

47

Paid by listed companies provided certain conditions are met.

48

Bonds with a maturity of at least five years.

49

Bonds with a maturity of less than five years.

50

Exemption does not apply if the payment is made by or to a Collective Investment Fund.

51

An exemption may apply where certain criteria is met.

52

Disclosed institutional investors.

53

Resident, other than an individual, of the contracting state.

54

Satisfies the criteria for the domestic exemption, otherwise a 25 percent withholding tax rate applies.

Brown Brothers Harriman & Co. (“BBH”) may be used as a generic term to reference the company as a whole and/or its various subsidiaries generally.  This material and any products or services may be issued or provided in multiple jurisdictions by duly authorized and regulated subsidiaries. This material is for general information and reference purposes only and does not constitute legal, tax or investment advice and is not intended as an offer to sell, or a solicitation to buy securities, services or investment products. All information has been obtained from sources believed to be reliable, but accuracy is not guaranteed, and reliance should not be placed on the information presented.  This material may not be reproduced, copied or transmitted, or any of the content disclosed to third parties, without the permission of BBH. Pursuant to information regarding the provision of applicable services or products by BBH, please note the following: Brown Brothers Harriman Fund Administration Services (Ireland) Limited and Brown Brothers Harriman Trustee Services (Ireland) Limited are regulated by the Central Bank of Ireland, Brown Brothers Harriman Investor Services Limited is authorised and regulated by the Financial Conduct Authority, Brown Brothers Harriman (Luxembourg) S.C.A is regulated by the Commission de Surveillance du Secteur Financier. All trademarks and service marks included are the property of BBH or their respective owners. © Brown Brothers Harriman & Co. 2022.  All rights reserved. IS-07897-2022-01-28

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You are required to read the following important information, which, in conjunction with the Terms and Conditions, governs your use of this website. Your use of this website and its contents constitute your acceptance of this information and those Terms and Conditions. If you do not agree with this information and the Terms and Conditions, you should immediately cease use of this website. The contents of this website have not been prepared for the benefit of investors outside of the United States. This website is not intended as a solicitation of the purchase or sale of any security or other financial instrument or any investment management services for any investor who resides in a jurisdiction other than the United States1. As a general matter, Brown Brothers Harriman & Co. and its subsidiaries (“BBH”) is not licensed or registered to solicit prospective investors and offer investment advisory services in jurisdictions outside of the United States. The information on this website is not intended to be distributed to, directed at or used by any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation. Persons in respect of whom such prohibitions apply must not access the website.  Under certain circumstances, BBH may provide services to investors located outside of the United States in accordance with applicable law. The conditions under which such services may be provided will be analyzed on a case-by-case basis by BBH. BBH will only accept investors from such jurisdictions or countries where it has made a determination that such an arrangement or relationship is permissible under the laws of that jurisdiction or country. The existence of this website is not intended to be a substitute for the type of analysis described above and is not intended as a solicitation of or recommendation to any prospective investor, including those located outside of the United States. Certain BBH products or services may not be available in certain jurisdictions. By choosing to access this website from any location other than the United States, you accept full responsibility for compliance with all local laws. The website contains content that has been obtained from sources that BBH believes to be reliable as of the date presented; however, BBH cannot guarantee the accuracy of such content, assure its completeness, or warrant that such information will not be changed. The content contained herein is current as of the date of issuance and is subject to change without notice. The website’s content does not constitute investment advice and should not be used as the basis for any investment decision. There is no guarantee that any investment objectives, expectations, targets described in this website or the  performance or profitability of any investment will be achieved. You understand that investing in securities and other financial instruments involves risks that may affect the value of the securities and may result in losses, including the potential loss of the principal invested, and you assume and are able to bear all such risks.  In no event shall BBH or any other affiliated party be liable for any direct, incidental, special, consequential, indirect, lost profits, loss of business or data, or punitive damages arising out of your use of this website. By clicking accept, you confirm that you accept  to the above Important Information along with Terms and Conditions.

 
1BBH sponsors UCITS Funds registered in Luxembourg, in certain jurisdictions. For information on those funds, please see bbhluxembourgfunds.com


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