Japan and Algeria signed a tax treaty on February 7.
The tax treaty provides for a withholding tax rate of five percent for dividends for holding of at least 25 percent of shares for one year. The rate would be ten percent in all other cases.
Royalties and interest payments would be subject to a withholding tax rate of ten percent and seven percent, respectively.
The treaty provides that treaty benefits would not be granted if it is reasonable to conclude that obtaining such a benefit was one of the principal purposes of any transaction.