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Double Tax Treaties with Cyprus (DTT)

Michalaki, Pitsillidou Law Firm > English Articles  > Double Tax Treaties with Cyprus (DTT)

Double Tax Treaties with Cyprus (DTT)

The tax rates for the income between the countries having a double taxation treaty with Cyprus

Many countries have agreed with other countries intreatiesto mitigate the effects of doubletaxation(DoubleTaxAvoidance Agreement). These agreements/conventions are made between the government of one country and the government of another country for the avoidance/elimination of double taxation on income and on capital. It concerns the persons who are residents of one or both of the Contracting Countries.  

Corporateprofits are taxed, and the shareholders of the corporation are (usually) subject to personal taxation when they receive dividends or distributions of those profits.  The main aim of those treaties is the avoidance of double taxation on income earned in any of contracting countries.

Cyprus over the years signed many double tax treaties and below you will find a chart analyzing the treaties in summary for a better and faster understanding. The benefits of the agreement is the rate reduction of withholding taxes on dividends, interest and royalties paid out from the contracting country or the avoidance of double taxation in the case where a resident in one of the contracting countries derives income from the other contracting country. This is the reason why Cyprus is one of the most attractive destinations as a Global Business Centre.

In summary the agreements of taxation treaties include the following safeguards for the taxpayers:

  • rate reduction of withholding taxes on dividends, interest and royalties
  • avoidance of double taxation (when a resident is one of the contractive countries)

Tax treaties should be studied and analyzed when establishing a Cyprus Company because they offer various opportunities to businesses and also to individuals who have chosen to establish legal entities in Cyprus.

iMPK Global Business Law firm- Cyprus Lawyers and our qualified tax lawyers in cyprus are here to assist you with whatever questions you might have on this planning. Our team consists also of qualified Cypriot chartered accountants who will add their accounting and auditing skills answering your questions.

SUMMARY OF WITHHOLDING TAX RATES
Received in Cyprus Paid from  Cyprus
Dividends

%

Interest

%

Royalties

%

Dividends

%

Interest

%

Royalties

%

Armenia 0 5 5 0 5 5
Austria 10 0 0 10 0 0
Belarus 5 5 5 5 5 5
Belgium 10 10 0 10 10 0
Bulgaria 5 7 10 5 7 10
Canada 15 15 10 15 15 10
China 10 10 10 10 10 10
Czech Republic O 0 0 0 0 0
Denmark 0 0 0 0 0 0
Egypt 15 15 10 15 15 10
France 10 10 0 10 10 0
Germany 5 0 0 5 0 0
Greece 25 10 0 25 10 0
Hungary 5 10 0 0 10 0
India 10 10 15 10 10 15
Ireland 0 0 0 0 0 0
Italy 15 10 0 0 10 0
Kuwait 10 10 5 10 10 5
Kyrgyzstan 0 0 0 0 0 0
Lebanon 5 5 0 5 5 0
Malta 0 1 10 15 10 10
Mauritius 0 0 0 0 0 0
Montenegro 10 10 10 10 10 10
Norway 5 0 0 0 0 0
Poland 0 5 5 0 5 5
Qatar 0 0 5 0 0 5
Romania 10 10 5 10 10 5
Russia 5 0 0 5 0 0
San Marino 0 0 0 0 0 0
Serbia 10 10 10 10 10 10
Seychelles 0 0 5 0 0 5
 Singapore 0 10 10 0 10 10
Slovakia 10 10 5 10 10 5
Slovenia 5 5 5 5 5 5
South Africa 0 0 0 0 0 0
Sweden 5 10 0 5 10 0
Syria 0 10 15 0 10 15
Tajikistan 0 0 0 0 0 0
Thailand 10 10 5 10 10 5
Ukraine 5 2 5 5 2 5
UK 15 10 0 0 10 0
USA 15 10 0 0 10 0
Uzbekistan 0 0 0 0 0 0

 

For more information and guidance get in touch with our lawyers or email iMPK Global Business Law Firm – Cyprus Lawyers, at info@impklawyers.com .Tel. +357 99345000 – Fax +357 25 660097

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