Across the globe, major tax changes took effect on January 1, 2020. There are also several proposed tax changes for 2020 pending the legislative approval process. In this edition of In Focus, we provide a comprehensive list and break down local law changes impacting tax rates, documentation and market procedures, as well as newly ratified tax treaties that result in a tax rate impact to our clients.

Local Law Tax Changes

 

 

Argentina Flag Argentina (Status: Passed)

The “Solidarity and Productive Reactivation Law” introduces the following changes to the withholding tax regime:

  • The withholding tax will increase to 15.05 percent for unlisted corporate bonds issued by banking/financial institutions.
  • The withholding tax will increase to 35 percent for unlisted corporate bonds issued by non-banking/non-financial institutions.  
  • The Personal Asset Tax will increase from .25 percent to .50 percent. The Personal Asset Tax is applied to the net equity value of the stock owned by a foreign investor at the Argentinean company’s discretion.

Investor Impact: Investors should be aware of the changes to withholding tax and the Personal Asset Tax introduced under the new tax reform law.

China Flag China (Status: Passed)

The China State Administration of Taxation (SAT) in Announcement [2019] No. 35 simplified treaty relief application procedures for nonresident investors. Nonresident investors may now complete a simplified application form (“Information Reporting Form of Tax Residence Status of Nonresident Taxpayer”) and the nonresident investor/withholding agent is no longer required to submit the supporting documentation to the Chinese Tax Authority, however, nonresident investors/withholding agents should maintain such documentation if requested by the Chinese Tax Authority for review. 

Investor Impact: Nonresident investors investing in China should be aware of and use the simplified application form when requesting treaty relief.

Colombia Flag Colombia (Status: Passed)

The Colombian government approved the Economic Growth Law 2010 increasing the withholding tax rates applicable to dividend income to nonresident investors from 7.5 percent to 10 percent. 

Investor Impact: Nonresident investors should be aware that the recent legislation increased the dividend withholding tax rate.

Denmark Flag Denmark (Status: Passed)

Beginning on January 1, 2020, Denmark introduced a new regime for nonresident funds seeking cross-border distribution into Denmark. 

For a nonresident fund to be considered within the regime it must:

  • Register with the Danish Tax Authority by November 1 of the year before the calendar year in which the nonresident fund intends to enter into the regime (i.e. to qualify for the regime in 2020 the fund needed to register by November 1, 2019; to qualify for the regime in 2021 the fund needs to register by November 1, 2020). The application is made on a sub-fund basis.
  • Satisfy an asset test, committing that the portfolio is on average invested at least 50 percent in equities as defined under Danish tax law, throughout the calendar year. For example, securities on loan, for Danish purposes, are still considered to be held by the lender while equity-based derivatives are not considered equities. Investments in target funds, where the fund owns at least 25 percent of the capital of the target fund, are treated as transparent (i.e. the fund must include a proportionate share of the assets in the target fund in the calculation). To illustrate compliance, the fund must make an annual notification to the Danish Tax Authority no later than July 1 after the calendar year in question. 

Investor Impact: Qualifying corporate form nonresident funds should consider whether to participate in the new regime.   

Finland Flag Finland (Status: Passed)

For payments made on or after January 1, 2020, undisclosed Finnish resident investors will be subject to 50 percent dividend withholding tax on distributions from Finnish equities. Finnish resident investors must hold assets in accounts registered in their own names. In situations where Finnish resident investors cannot be identified or disclosed, dividend income will be subject to a 50 percent withholding tax.

Investor Impact: Undisclosed Finnish resident investor will be subject to a 50 percent dividend withholding tax on distributions from Finnish equities. Investors that maintain omnibus accounts in Finland are encouraged to screen for Finnish resident investors.

Finland Flag Finland (Status: Passed)

The Finnish government passed amendments clarifying eligibility criteria for EU and European Economic Area (EEA) member state domiciled funds to benefit under the local law withholding tax exemption.

For payments made on or after January 1, 2020, nonresident funds may benefit from a local exemption available to Finnish domestic funds.

To qualify for this exemption specific criteria needs to be satisfied.

For EU and EEA funds, this requires that: 

  • The nonresident fund is established on a contractual basis;
  • The nonresident fund has at least 30 unitholders; and
  • The nonresident fund is open to the public and is open-ended.

For nonresident funds that are registered outside of the EEA, the following additional requirements need to be met:  

  • The nonresident investment fund must be an undertaking for collective investment pursuant to the laws of the country in which it is registered;
  •  The country in which the fund is registered has entered into an Exchange of Information Agreement with Finland; and
  • In practice, it is possible to obtain tax information from the country in which the fund is registered in order to evaluate whether the fund meets the referenced requirements.

Alternative Investment Funds (AIFs), established pursuant to the EU Alternative Investment Fund
Managers Directive (AIFMD), can benefit under the withholding tax exemption provided the following criteria is met:

  • The nonresident fund has at least 30 unitholders; and
  • The nonresident fund is open to the public and is open-ended.

From a practical perspective, relief at source would only be available where the fund has applied for and received a Finnish Tax-at-Source Card from the Finnish Tax Authorities. Alternatively, the fund can file a tax reclaim with the Finnish Tax Authorities after the year of payment. The reclaim will be evaluated by the Finnish Tax Authority based on the criteria set forth above.

Investor Impact: Nonresident fund investors in Finland should consider if they satisfy the requirements outlined above to qualify for the local withholding tax exemption.

France Flag France (Status: Passed)

The French Finance Law 2018 reduced the statutory withholding tax rate for dividends paid to nonresident beneficial owners from 30 percent to 28 percent effective January 1, 2020.

Investor Impact: Investors should be aware that the French Finance Law 2018 reduced the statutory dividend withholding tax rate.

France Flag Germany (Status: Effective)

The German Tax Authority announced that beginning January 1, 2020 it will only accept the new version of the paper reclaim form, “Antrag auf Erstattung der deutschen Steuer auf Kapitalerträge“ (Application for a refund of German capital income tax). Published in March 2019, this form must be completed on the website and printed single-sided (the German Tax Authority will reject forms printed double-sided.)

Investor Impact: For investors seeking reclaim relief, they should ensure that they are using the new reclaim form and that it is printed single-sided for submission to the German Tax Authority.

Greece Flag Greece (Status: Passed)

The Greek parliament passed a bill reducing withholding tax rates. The new rates saw:

  • The reduction of the dividend withholding tax rate from 10 to 5 percent.
  • The introduction of a withholding tax exemption on interest from corporate bonds that are listed on an organized exchange.

Investor Impact: Nonresidents investing in Greek securities will be subject to the reduced withholding tax rate on Greek equity distributions and will be exempt from withholding tax on interest income from publicly traded bonds.

India Flag India (Status: Passed)

The amendments to the India Stamp Duty Act as proposed under the India Finance Bill 2019 will, effective April 1, 2020, withdraw the stamp duty exemption for the transfer of securities in dematerialized form. The scope of “securities” chargeable to stamp duty is further expanded to include derivatives, mutual fund units, repo on corporate bonds, and similar type of instruments. There would also be a centralized collection of stamp duty by the stock exchanges, authorized clearing corporations, or depositories.  

Investor Impact: Investors should note the new stamp duty rules and rates applicable to Indian securities and transactions applicable beginning April 1, 2020.

Ireland Flag Ireland (Status: Passed)

The Finance Act 2019 increased the statutory dividend withholding tax rate from 20 percent to 25 percent.

Investor Impact: Investors should take note of the increased statutory dividend withholding tax rate in Ireland. 

Italy Flag Italy (Status: Passed)

The interest rate paid on reimbursement of withholding tax reclaims will decrease from 0.8 percent to 0.05 percent.

Investor Impact: Investors should be aware of the decreased interest rate when receiving reclaims.

Kenya Flag Kenya (Status: Passed)

Interest income from all listed bonds, notes and similar securities, used to raise funds for infrastructure projects as defined under the Green Bonds Standards and Guidelines and other social services, with a maturity rate of at least three years is exempt from withholding tax.

Investor Impact: Nonresident investors holding Kenyan Green Bonds are eligible for exemption from withholding tax on interest.

Lithuania Flag Lithuania (Status: Pending)

The Lithuanian government proposes an increase to the dividend withholding tax rate for disclosed investors from 15 percent to 20 percent. 

Investor Impact: The proposal advises an increase to the statutory dividend withholding tax rate.

Lithuania Flag Lithuania (Status: Passed)

The Lithuanian government decreased the statute of limitations for filing a reclaim from five years to three years.

Investor Impact: Investors making reclaim filings in Lithuania should be aware of the reduced statute of limitations for making a filing.

Malaysia Flag Malaysia (Status: Enacted)

The Malaysia Finance Act 2019 extends the existing withholding tax regime for Real Estate Investment Trust (REIT) distributions for another six years (December 31, 2019 through December 31, 2025). The rates are:

  • 24 percent (the prevailing corporate tax rate) for nonresident and resident corporations.
  • 10 percent for foreign institutional investors (including pension funds), collective investment funds, nonresident and resident individuals, and resident non-corporate entities.

Investor Impact: Qualifying investors may avail of the lower withholding tax rate for REIT distributions through December 31, 2025.

Peru Flag Peru (Status: Passed)

Pursuant to Urgent Decree 005-2019, the temporary withholding tax exemption on capital gains for transfers of securities carried out through the Lima Stock Exchange has been extended through December 31, 2022.

Investor Impact: Qualifying investors may avail of the lower withholding tax on capital gains for transfers of securities on the Lima Stock Exchange through December 31, 2022.

Poland Flag Poland (Status: Passed)

The Ministry of Finance issued amendments to the January 1, 2019 Tax Ordinance. The amendments became effective on January 1, 2020. Pursuant to the amendment, the implementation of the Polish zloty (PLN) two million income threshold is postponed until June 30, 2020. Calculation of the threshold excludes interest and discount from bonds paid to nonresident investors where the bonds are issued by: (i) the State Treasury and offered on both the local and foreign markets; or (ii) Bank Gospodarstwa Krajowego S.A. dedicated to funding specific programs defined in the tax Ordinance and offered on foreign and local markets. 

Until the PLN, two million income threshold is implemented, relief at source will continue to be available to the following investors:

  • Supranational organizations, where Poland is a member thereof;  
  • Tax exempt entities referenced by name in a tax treaty with Poland;  
  • Foreign governments, its administrative subdivisions and local authorities;  
  • Foreign banks and investment firms; and
  • Central banks.

Investor Impact: Implementation of the PLN two million income threshold has been postponed until June 30, 2020.  

Singapore Flag Singapore (Status: Passed)

The Ministry of Finance extended the existing 10 percent withholding tax rate on REIT distributions received by nonresident non-individuals through December 31, 2025. The 10 percent withholding tax rate will also apply to REIT distribution to nonresident funds until December 31, 2025. 

Investor Impact: Qualifying investors in Singaporean REITs can avail of the 10 percent withholding tax rate on REIT distributions through December 31, 2025. 

Slovenia Flag Slovenia (Status: Passed)

The dividend, interest, and capital gains tax rate will increase to 27.5 percent from 25 percent. The increased tax rate will apply to nonresident individual investors, undisclosed investors and investors domiciled in countries on Slovenia’s tax haven list. 

BBH is an Authorized Foreign Intermediary in Slovenia. As such, payments made to BBH on an undisclosed beneficial owner account will be subject to the increased tax rate.

Investor Impact: Impacted investors should be aware of the increased rate. Eligible investors should ensure BBH has the necessary documentation on file to benefit from reduced tax rates pursuant to a tax treaty with Slovenia.

South Korea Flag South Korea (Status: Passed)

The Ministry of Economy and Finance announced an amendment to reduce the securities transaction tax for securities traded over-the-counter from 0.5 percent to 0.45 percent effective on April 1, 2020.

Investor Impact: The securities transaction tax rate on securities traded over-the-counter will be lower.

Tax Treaty Changes 

Note: The list of treaties provided below does not cover all treaty changes that became effective on January 1, 2020, but only those that will result in a significant tax rate impact to investors domiciled in one or both of the contracting countries.

Contracting Countries

Protocol/

Treaty

Dividend Rate

Interest Rate

Capital Gains Rate

Investor Impact

Andorra/Cyprus

Treaty

0%

0%

0% /

Taxed in market of investment(25)

Statutory withholding tax rates are equal to treaty rates.

Angola/Portugal

 

15% /  8%(32)

10% / 0%(2)

0% /

Taxed in the market of investment(29)

Portuguese investors into certain Angolan bonds; Angolan investors into Portuguese equities. 

Argentina/

United Arab Emirates (UAE)

Treaty

15% /

5%(1)

12% /

0%(1)

0% /

Taxed in market of investment(21)

The UAE government into Argentinian equities.  

Australia/Israel

Treaty

15% /

5%(39)/

0%(4) (6) (7) (8)

10% /

5%(2) (8) (6) (7) (13)/

0%(1)

0% /

Taxed in the market of investment(25)

Australian investors into Israeli equities and bonds; Israeli investors into Australian equities.

Austria/Russia

Protocol

15 % /

5%(37)

0%

0% /

Taxed in the market of investment(23)  

Russian investors into Austrian equities; Austrian investors with 10 percent ownership in Russian companies on Russian dividends.

Austrian investors with 10 percent ownership in Russian companies.  

Austria/

United Kingdom (UK)

 

Treaty

10% /

15%(15) (16) /

0%(8) (39)

0%

0% /

Taxed in the market of investment(20) (26) (46) /

Taxed in the market of residence   

UK investors into Austrian equities.

 

Bangladesh/

Czech Republic

Treaty

Rates not yet available

Rates not yet available

Rates not yet available

An English translation of the treaty has not been published.

Belgium/Japan

Treaty

10% /

0%(6)

10% /

0%(2) (6) (43)

0% /

Taxed in market of investment(21)

Belgian and Japanese investors into equities;   Japanese investors into Belgian corporate bonds; certain Belgian investors into Japanese bonds.  

Bulgaria/Saudi Arabia

Treaty

5% /

0%(1)

5% /

0%(1) (6)

0% /

Taxed in market of investment(19)

The governments of Bulgaria and Saudi Arabia into bonds; Bulgarian and Saudi Arabian pension funds into bonds. 

Cambodia/Hong Kong

Treaty

10%

10% /

0%(2)

0% /

Taxed in market of investment(23)

Hong Kong investors into Cambodian equities.

Cambodia/Vietnam

Treaty

10%

10% /

0%(2)

0%

Taxed in market of investment(23)

Vietnamese investors into Cambodian equities and bonds.

China/Hong Kong

Protocol

5% /

10%

7%

0% /

 Taxed in market of investment(24)

The Protocol only amends the capital gains tax provisions.

 

Investors in China and Hong Kong with shares deriving value from real property may be subject to increased tax on the capital gains from the disposition of those shares.

 

Regularly traded shares and shares  and investment funds are exempt from this taxation.

China/India

Protocol (A)

10%

10% /

0%(2) (5)

Taxed in market of investment

The Chinese and Indian governments and central banks and loans guaranteed by Chinese and Indian governments on bonds. 

(A) The protocol enters into force on April 1, 2020 for India.  

China/New Zealand

Treaty

15% /

5%(33)/

0%(3)

10% /

0%(4)

0 percent/

Taxed in market of investment(25) (31)

 

 

Chinese investors into New Zealand equities and bonds; New Zealand investors who own 25 percent of a company and the New Zealand government into Chinese equities.   

Colombia/

United Kingdom (UK)

Treaty

15%

(35)/

0%(6)

10% /

0%(2) (6)  

0% /

Taxed in market of investment(19)

UK  pension funds into equities. UK pension funds and government owned entities including central banks inon bonds.  

Costa Rica/Mexico

Treaty

12% /

5%(34)

10% /

0%(2) (11)

0% /

Taxed in market of investment(23) (32)

Mexican investors into Costa Rican equities;   Mexican and Costa Rican companies with 20 percent ownership in the company on equities;

Mexican and Costa Rican governments and central banks on bonds.  

Croatia/Japan

Treaty

5% /

0%(33)

5% /

0%(1) (5)  

0% /

Taxed in market of investment(23) (20)

Croatian and Japanese investors into equities;  Croatian investors in Japanese bonds.  

Croatia/Kazakhstan

Treaty

5% /

10%

10%

10%

Kazakhstani investors into Croatian equities.  

Croatia/Vietnam

Treaty

10%

10%

0% /

15%(37) /

Taxed in market of investment(21)

Vietnamese investors into Croatian equities. 

Cyprus/Saudi Arabia

Treaty

5% /

0%(32)

0%

0% /

Taxed in market of investment(31)

Cypriot investors into Saudi Arabian bonds.

Cyprus/Ukraine

Protocol

10% /

5%(36)

5% /

0%(1)

0% /

Taxed in market of investment(23)

The protocol modified the provisions on dividends and interest.

Cypriot investors into Ukrainian equities.

Czech Republic/

South Korea

Treaty

5%

5%

0% /

Taxed in market of investment(20) 

Investors from both countries may benefit from the treaty rates.

Ecuador/Japan

Treaty

5% /

10%(42)

10% / 0% (2) (5)

0% /

Taxed in market of investment(22)

Ecuadorian investors into Japanese equities and bonds;  Japanese investors into equities that are not taxed at the corporate level. 

Egypt/Uzbekistan

Treaty

10% /

5%(33) /

0%(1)

10% /

0%(2)

0% /

Taxed in market of investment(22)

Egyptian and Uzbekistani companies with a 25 percent ownership interest in the paying company; Egyptian and Uzbekistani governments investing in Uzbekistani and Egyptian equities and bonds.  

Estonia/Hong Kong

Treaty

10% /

0%(1)

10% /

0%(1)

0% /

Taxed in market of investment(22)

Statutory withholding tax rates are lower than treaty rates.

 

France/Luxembourg

Treaty

15% /

0%(41) (30)

0%

0% /

Taxed in market of investment(23)

French investors into Luxembourgian bonds; Luxembourgian investors into French bonds.  

Georgia/Saudi Arabia 

Treaty

5 % /

0%(34)

5% /

0%(1) 

0% /

Taxed in the market of investment(19)

Statutory withholding tax rates are equal to treaty rates.

 

Germany/Tunisia

Treaty

15% /

5%(37)

10%

2.5%(10)/

0%(2)

0% /

Taxed in the market of investment(21)

German residents investing in Tunisian bonds.

 

Ghana/Singapore

Treaty

7%

7% /

0%(2)

0% /

Taxed in market of investment(20)

Singapore investors into Ghana equities and corporate bonds; Ghana investors into Singaporean bonds.

Israel/Serbia

Treaty

15% /

5%(33)

10% /

0%(2)

0% /

Taxed in the market of investment(23)

Serbian investors into Israeli equities and short-term government bonds;

Israeli investors into Serbian equities and bonds.

Israel/UK

Protocol

15% /

5%(39)

0%(6)

10% /

0%(2) (6)

0% /

Taxed in the market of investment(20) (25)

The protocol modified the dividend and interest withholding tax provisions.

 

UK investors in Israeli equities and short-term government bonds.

Kosovo/Luxembourg

Treaty

10% /

0%(37)

5% /

0%(2) (12) (14) (18) (45)

0% /

Taxed in the market of investment(23) (46)  

For investors investing in Luxembourgian equities subject to a 15 percent withholding tax rate and Luxembourgian investors into Kosovan bonds.   

Kosovo/Malta

Treaty

10%(47)/

0%(37)

5% /

0%(2) (12) (14)

0% /

Taxed in market of investment(23)

Maltese investors into Kosovan equities and bonds.

Liechtenstein/Lithuania

Treaty

15% /

0%(39)

10% /

0%(44)

0%

Undisclosed Liechtensteiner investors into Lithuanian equities and bonds.

Malta/Monaco

Treaty

0%(47)

0%

0% /

Taxed in market of investment(23)

Statutory withholding tax rates are equal to treaty rates.

Paraguay/Uruguay

Treaty

15%

15%

0% /

Taxed in market of investment(23) (20)

Paraguayan investors on capital gains generated in Uruguay.  

Poland/Sri Lanka

Treaty

10%

10% /

0%(1)

0% /

Taxed in market of investment(23)

Sri Lankan investors in Polish equities and bonds;  Polish investors in Sri Lankan equities. 

Qatar/Ukraine

Treaty

10% /

5%(38)/

0%(1)

10% /

5%(12) (17)

0%(1)

0% /

Taxed in the market of investment(23)

Qatari investors into Ukrainian equities and bonds. 

Russia/Sweden

Protocol

15% /

5%(40)

0%

0% /

Taxed in market of investment(23)

Russian investors on Swedish equities; Swedish company investors with a 10 percent interest in the paying company on equities and Swedish investors in bonds.

Saudi Arabia/UAE

Treaty

5%

5%

0%

UAE investors investing in Saudi Arabian corporate and government bonds.

Singapore/ South Korea

Treaty

15% /

10%(32)

10% /

0%(2)

0% / Taxed in market of investment(23) (31)

The treaty only modified the provisions on capital gains tax, attributing capital gains to the market of investment on the sale of stock of shareholders with less than 25 percent to the country of residence and on the sale of stock to shareholders with more than 25 percent ownership.  

Singapore/Tunisia

Treaty

5% /

0%(2)

10% /

5%(9)/

0%(2)

0% /

Taxed in the market of investment(23)

Tunisian investors in Singaporean bonds; Singaporean investors in Tunisian equities and bonds.

Switzerland/UK

Protocol (B)

15% /

0%(39)

0%

Taxed in market of residence/market of investment

As the rates do not change, it only impacts investors with conduit arrangements.

 

The rates remain the same, but for purposes of dividends and interest, the Protocol deletes the provisions for conduit arrangements.

 

(B) The Protocol becomes effective in the UK on April 1, 2020.  

Switzerland/

United States

Protocol

15% /

5%(37)/

0%(6) 

0%

Taxed in market of residence/market of investment

As the rates do not change, it only impacts dividends paid to pension fund or other retirement arrangement investors who are not subject to tax in either contracting party. 

Switzerland/Zambia

Treaty

15% /

5%(37)/

0%(2) (6)

10% /

0%(2) (6)  

0% /

Taxed in the market of investment(22)

Swiss and Zambian investors into Zambian and Swiss equities and bonds.  

Ukraine/UK

Protocol

15% /

5%(34)/

0%(6)

5% /

0%(1) (5)

Taxed in market of residence/market of investment(21)

UK investors into Ukrainian corporate bonds.

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. Any reference to tax matters is not intended to be used, and may not be used, for purposes of avoiding penalties under the U.S. Internal Revenue Code, or other applicable tax regimes, or for promotion, marketing or recommendation to third parties. 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. 2020. All rights reserved. IS-05859-2020-01-28

(1) Governments of the contracting states.
(2) Governments and central banks of the contracting states.
(3) Governments of the contracting states provided they own less than 25 percent of the paying company.
(4) Governments and central banks of the contracting states provided they own less than 10 percent of the voting power of the paying company.
(5) Loans guaranteed by governments and/or central banks of the contracting states.
(6) Pension funds.
(7) Pension provident funds provided not taxed in the contracting state where resident.
(8) Superannuation funds.
(9) Banks or similar financial institutions.
(10) Banking establishments.
(11) Certain payments made by listed banks.
(12) Loans granted by banks.
(13) Financial institutions unrelated to the payer.
(14) Interest paid on any loan granted by a collective investment vehicle.  
(15) Where paid by a real estate investment fund.
(16) Where paid by a real estate investment trust.
(17) Interest is in connection with loans on industrial, commercial, or scientific equipment.
(18) Indebtedness due to the sale of equipment, merchandise, or services.
(19) Gains from the sale of shares other than those on a recognized stock exchange.
(20) Gains derived from real property.
(21) Gains from the sale of shares of which principally consists of real property.
(22) 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.
(23) Gains from the sale of shares which derive 50 percent or more value directly or indirectly from real property in the contracting state
(24) Gains from the sale of shares with respect to real property may be taxed in the market of investment if at any time in the three years prior to the sale, the shares derived more than 50 percent of their value directly or indirectly from immovable property in the contracting states.
(25) Gains derived from the sale of shares which derive 50 percent of its value from real property during the prior year.
(26) Gains from the sale of shares which derive 40 percent or more of their value from real property.
(27) Gains from the sale of shares where 30 percent or more of the value comes from real property owned by the company.
(28) Unless listed on a stock exchange, gain from the sale of shares which derive 25 percent or more from real property in the contracting state.
(29) Gains from the sale of shares which derive 25 percent or more from real property in the contracting states.
(30) Dividends paid out of income derived from real property by an investment vehicle established in the contracting state, which distributes most of its income annually, and where the gain from such income is taxed in the other contracting state.
(31) Investor holds 25 percent of the paying company.
(32) Investor is a company, other than a partnership, which holds at least 25 percent of the paying company.
(33) 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).
(34) 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).
(35) Nonresident institutional investors holding a 20 percent interest in the paying company.
(36) Investor is a company holding at least 20 percent of the capital or shares equivalent to Euro (€) 100,000 in the paying company.
(37) Investor is a company, other than a partnership, which holds at least 10 percent of the paying company.
(38) Investor is a company, other than a partnership, which directly holds at least 10 percent of the paying company.
(39) For dividends paid to a company (other than a real estate investment fund) that holds 10 percent or more of the voting power for the 365-day period prior (including dividend payment date).
(40) 5 percent rate applies if the beneficial owner is a company (other than a partnership), which holds directly at least 10% of the capital of the paying company (other than a paying company that is an investment fund) and this holding amounts to at least EUR 80,000 or an equivalent amount in any other currency at the dividend pay date.
(41) Qualifying resident companies directly holding 5 percent of the capital of the paying company.
(42) Where the dividends are deductible in computing the taxable income of the paying company.
(43) Enterprise of a contracting state.
(44) Non-individual residents of the contracting countries.
(45) Intercompany loans.
(46) Gains from sales associated with permanent establishments.
(47) In Malta, the tax on dividends will not exceed the amount chargeable on the profits out of which the dividends are paid.