EU-wide withholding tax on interest payments.

ECONOMIST: Sovereign policy

Tax is a touchy issue for Luxembourg, which lures huge amounts of German savings by not charging withholding tax on bank interest.

ECONOMIST: European Union

It ceased to be a tax-free haven for citizens of European Union countries in July, when a withholding tax (imposed at source on interest) was levied on their money.

ECONOMIST: Swiss private banks

Among other things, the new treaty adopts a 0% withholding tax--down from 10%--on certain interest, dividends and royalties paid from the country where a company is doing business but isn't based.

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