On 2 September 2014, the government of East Timor approved for ratification the pending income tax treaty with Portugal. Portugal ratified the treaty in August 2012. The treaty is the first of its kind between the two countries, and the first with any country for East Timor. Taxes Covered The treaty covers Portuguese personal and corporate income taxes, and surtaxes on corporate income. It covers East Timor income tax, wage tax and withholding tax. Withholding Tax Rates Dividends - 5% if the beneficial owner is a company directly holding at least 25% of the paying company's capital, otherwise 10% Interest...