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Canada Publishes Notice on Effect of MFN Provision of Tax Treaty with Lithuania for Royalties

19 November 2021

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Treaty Development

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Canada-Lithuania

The Canada Revenue Agency has published a notice concerning the effect of the MFN provision of the 1996 Canada-Lithuania tax treaty with respect to royalties. --- Canada–Lithuania Income Tax Convention: "Most Favoured Nation" provision takes effect to eliminate source-state taxation rights in respect of certain royalties Effective January 1, 2019, the withholding rate described in paragraph 2 of Article 12 of the Canada–Lithuania Tax Convention has been eliminated with respect to certain royalties. The following types of royalties paid or credited on or after January 1, 2019 are therefore exempt from tax in the state in which they arise: copyright...