Tax treaty Between Peru and Switzerland Enters Into Force

The income and capital tax treaty between Peru and Switzerland entered into force on March 10th 2014. The withholding rates of the treaty are as follows:

• Dividends - 10% if paid to a company that holds directly at least 10% of the capital of the paying company, otherwise 15%
• Interest - 10% if incurred for financing to acquire industrial, commercial or scientific equipment, or on a bank loan, otherwise 15%
• Royalties - 10% for technical assistance or digital services, otherwise 15%

The treaty wi…