Canada and Jordan sign tax treaty

(September 10 – 12:10 ET) – Canada has reached a tax treaty with Jordan.

Finance Minister Paul Martin says the treaty with the Hashemite kingdom was signed Sept. 6 in Amman.

The deal largely follows the Model Double Taxation Convention prepared by the Organization for Economic Co-operation and Development. Under the deal, a general 10% tax rate applies to interest and royalty income and a 15% rate is due on dividends, except for entities that own at least 10% of the dividend-paying firm, in which case the rate will be 10%.

The treaty takes effect once Canada and Jordan each ratify it, and applies in the first full year after ratification.

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