Upcoming Payments and Market Updates: Q3 2024

Upcoming Payments

Tax Treaty Changes

Ethiopia/Luxembourg

The 2021 tax treaty between Luxembourg and Ethiopia entered into force on 11 August 2023 and applies as from 1 January 2024 in Luxembourg and as from 8 July 2024 in Ethiopia.

The 5% rate applies to dividends paid to a company (other than a partnership) that holds directly at least 25% of the capital of the payer company; otherwise, the rate is 10%. The interest rate will be 5% except when it is paid to the government or Central Bank where 0% will be applied.

Pakistan/Estonia

The 2023 tax treaty between Estonia and Pakistan entered into force on 30 April 2024 and will apply from 1 January 2025 in Estonia and as from 1 July 2024 in Pakistan.

When in effect, the treaty provides for a 12.5% withholding tax rate on dividends and interest. A 0% interest rate will apply to the government, local authority, or Central Bank.  A 10% withholding tax rate will apply on royalties.

Nothing on this page is intended to constitute financial, legal, or tax advice.