Key statistical conceptThis table shows standard withholding tax rates under bilateral treaties applicable to businesses when they make payments to other foreign or domestic business entities or individuals, e.g., in the form of dividends, interest, and royalties. Governments collect these taxes based on statutory tax rates requiring businesses to withhold a fraction of cross-border payments in scope of the withholding tax.
Data are based on bilateral treaties reported by 131 Inclusive Framework member jurisdictions. The database refers to bilateral tax treaties only. Multilateral agreements are not accounted for. Other tax-related agreements such as tax information exchange agreements are not counted. Only treaties in effect are counted. For each of the categories of payment flows, existing treaties that do not specify the applicable withholding tax rate, and hence create missing values, are not included in this figure. Where a tax treaty provides for different rates for specified ownership percentages, this entry reflects the highest ownership percentage.