According to a recent update by the Guernsey government, the income and capital tax treaty between Guernsey and Luxembourg entered into force on 8 August 2014. The treaty, signed 10 May 2013, is the first of its kind between the two jurisdictions and will apply from 1 January 2015. Taxes Covered The treaty covers Guernsey income tax, and Luxembourg individual income tax, corporation tax, capital tax and the communal trade tax. Withholding Tax Rates Dividends - 5% if the beneficial owner is a company directly holding at least 10% of the paying company's capital, otherwise 15% Interest - 0% Royalties...