Tax treaty between Japan, Morocco signed

The tax treaty will become effective after both countries have completed their respective domestic procedures.

Japan and Morocco on January 8, 2020, signed a new tax treaty.

The tax treaty provides for a withholding tax rate of five percent for certain kinds of dividend payments.

Interest payments are subject to a withholding tax rate of ten percent.

Royalty payments are subject to a withholding tax rate of five percent for the use of, or the right to use, industrial, commercial, or scientific equipment.

Gains from the alienation of shares representing at least 50 percent of the capital of a company are subject to five percent. Gains derived from changes of ownership that would directly result from a corporate reorganisation of that company or that alienator are exempt.

The treaty would be effective after necessary domestic procedures are completed in both countries.