Tax Convention Signed Between Canada and Madagascar

• Full text of the Tax Convention

A Convention between Canada and the Republic of Madagascar for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income was signed in Antananarivo on November 24, 2016.

The Convention limits the rate of withholding tax to 5% for dividends paid to a company that holds directly or indirectly at least 25% of the voting power of the company that pays the dividends, to 15% for dividends paid in all other cases, and to 10% for payments of interest and royalties. The Convention also exempts from withholding tax certain payments of interest and limits the rate of withholding tax to 5% on certain payments of royalties.

The Convention includes provisions reflecting the standard developed by the Organisation for Economic Co-operation and Development for the exchange of information for tax purposes.

The Convention will enter into force once Canada and the Republic of Madagascar have notified each other that the procedures required by their laws for the bringing into force of the Convention have been completed. The Convention will have effect in accordance with Article 28 of the Convention.

For further information contact:

Tax Legislation Division
Phone: (613) 369-4081

For information concerning the interpretation and application of Canada’s tax treaties, please contact the Canada Revenue Agency (CRA). Contact information is available on the CRA website. The CRA website has information concerning tax treaties and other information concerning international tax issues.