Ddouble taxation avoidance agreement between this countries entered into force on June 1,2016
Under this agreement tax withholding capped 15 percent in general and 5 percent where the beneficial owners is a companies owned at least 10 percent from all capital of company. Withholding will arise rate of 10 percent.
Then, agreement provides that royalties arising in beneficial company will be taxable only in that country.However royalties had getting like award for using or taking rights for using any copyrights of literary or artistic work, including cinematograph films and tapes for television or broadcasting, or for information concerning commercial experience may be taxed in accordance with the law of the country in which they arise.
Treaty also includes provisions to prevent treaty abuse. Also exchange tax information between tax administration of both countries.
The new provisions of this agreements will be enter into force from January 1, 2017.