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What is the interest withholding rate between Australia and Canada?
Under the Australia-Canada tax treaty, the withholding rate on interest is 10%. Certain types of interest (such as government bonds) may qualify for additional exemptions under specific treaty articles. This 10% rate compares to a median of 10% across Australia's 48 active treaty partners, and 10% across Canada's 51 active partners.
Network Comparison
Australia
Rank 7 of 48 active treaties (lowest rate = #1)
Lower rates with: Saudi Arabia (5%), Austria (10%), Belgium (10%)
Higher rates with: Switzerland (10%), China (10%), Cyprus (10%)
Canada
Rank 4 of 51 active treaties (lowest rate = #1)
Lower rates with: United States (0%), United Arab Emirates (10%), Austria (10%)
Higher rates with: Belgium (10%), Bulgaria (10%), Switzerland (10%)
Important: Treaty rates require proper claim forms (e.g., IRS Form W-8BEN for U.S. treaties, HMRC DT-Individual for U.K. treaties, CRA Form NR301 for Canadian treaties) filed before payment. Limitation on Benefits (LOB) provisions may restrict eligibility. A 0% withholding rate does not mean no tax — the residence country may still tax the income. This is not tax advice.