Germany and China Sign New Tax Treaty

On March 28th 2014, Germany and China signed a new income and capital tax treaty. The treaty will replace the original treaty signed in 1985, and includes the following withholding rates:

• Dividends - 5% if the beneficial owners is a company that holds at least 25% of the capital of the paying company, 15% if paid from tax exempt income derived from immovable property of an investment vehicle, otherwise 10%
• Interest - 10%, although interest is exempt when in connection with a credit sale for com…