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What is the interest withholding rate between Australia and Luxembourg?
Under the Australia-Luxembourg 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 0% across Luxembourg's 27 active partners.
Network Comparison
Australia
Rank 25 of 48 active treaties (lowest rate = #1)
Lower rates with: Israel (10%), Italy (10%), Japan (10%)
Higher rates with: Mexico (10%), Netherlands (10%), Norway (10%)
Luxembourg
Rank 16 of 27 active treaties (lowest rate = #1)
Lower rates with: Singapore (0%), United States (0%), South Africa (0%)
Higher rates with: Belgium (10%), Brazil (10%), Canada (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.