The rule under Article 21 of the DTT provides for a reduction in income tax on dividends collected in Greece from the total tax collected in Cyprus, which includes both the tax on dividends paid in Cyprus and the Cypriot corporate tax on the underlying profits of the Cypriot distribution unit. The document could pave the way for extensive treatment of dividends received by foreign companies in countries where the DTT agreement contains similar provisions from Greek tax resident shareholders. The table below provides a summary of the applicable withholding rates for income between countries that have a double taxation agreement with Cyprus. The following tax rates apply under certain conditions set by the provisions of each agreement. 25. The provisions of the Double Taxation Convention between the Republic of Cyprus and the former Federal Socialist Republic of Yugoslavia are still in force. Bosnia also applies this provision. Cyprus has an extensive network of double taxation conventions and is often regarded as a preferred jurisdiction for the transfer of investments in: 8. The Double Taxation Agreement between Cyprus and Greece provides for 25% withholding tax, but Greek legislation provides for a 10% withholding tax from 1/1/2009. Get free tax instructions from our experts if you are considering using a Cypriot company in a given structure. We will be happy to give you our first comments and instructions on your tax planning, with no fees or obligations. Send us an email to email@example.com and one of our team members will contact you within the next 24 hours to arrange a free expert check. 10.
The Double Taxation Agreement between Cyprus and the United Kingdom provides for a 15% withholding tax, under which dividends are not withheld under UK law. Companies that control at least 10% of voting rights are not entitled to withholding tax. 5. 15% applies when it is received by a company that controls less than 25% of the voting rights and, in all cases, when it is received by an individual. 13. 0% applies to patents, production processes or royalties resulting from scientific research. NIL, if the economic beneficiary is the other contracting state or the central bank of that other state or a national agency or any other agency (including a financial institution) owned or controlled by the government of that other state.