China and Canada are ready to update the "old" agreement

13.02.2012 Canada and China are reviewing the provisions of double taxation avoidance agreement. This international document was signed between the two powers in 1986.

The main purpose of updating the content of this agreement is decrease of tax barriers in order to strengthen further economic co-operation between the states.
The specific innovations have not yet been discussed by the officials of China and Canada but the provisions on information exchange will exactly become the part of the updated tax treaty. Let’s recall that inclusion of information exchange items in the documents of tax sphere has become a world trend, the changes take place in order to establish compliance with the standards of the international organization OECD.

One of the issues of discussion recently held between the governments of Canada and China was reducing of the tax rate at source. Let’s note that China is one of the largest trading partner of Canada.

Expert’s opinion

“Another agreement in the tax sphere has been prepared to review by the world's leading powers - Canada and China.

One of the reasons is the necessity to establish compliance with standards of the Organization for Economic Cooperation and Development (OECD). Another reason could be called an objective need for both countries to reduce the tax burden for both corporate bodies and individuals as recently trade relations between the states have become particularly strong.

Also to our opinion the removal of tax barriers will have positive influence on the investment climate on the territories of both powers”.

On the basis: www.news.gc.ca

Andrianova Irina ( the leading lawyer of the legal support and banking consulting department of Honest&Bright)