Luxembourg – Estonia: Tax Treaty Enters Into Force

The new Income and Capital Tax Treaty between Luxembourg and Estonia entered into force on 11 December 2015 and its provisions took effect on 1 January 2016.

The new treaty replaces the previous one of 2006.

In accordance with the new treaty, the following withholding taxes will apply:

Dividends:

• 0% if the beneficial owner is a company which holds directly at least 10% of the capital of the company paying the dividends.

• 10% in all other cases.

Interest: 0%.

Royalties: 0%.