In a move which will provide increased access to foreign capital for Canadian businesses, the Canadian Government, in December 2007, eliminated Canadian non-resident withholding tax on interest on arm’s-length debt obligations to non-residents of Canada after 2007. In addition, future amendments contained in the Fifth Protocol to the Canada-US Income Tax Convention will eliminate withholding tax on most interest on debt to non-related persons and, over time, on interest payments made to related persons resident in the United States.

type Canada Eliminates Withholding Tax on Interest on Arm's-Length