News
New Double Tax Treaty between Cyprus & Iran
The Double Tax Treaty between Cyprus and Iran signed On the 4th of August 2015. The DTT is based on the OECD Model and is expected to enter into force on the 1st of January, following the date of the ratification by both countries.
The most significant provisions of the new treaty are highlighted below:
Dividends: 5% withholding tax on the dividends, if the beneficial owner is a company holding at least 25% of the capital of the company paying the dividends. 10% withholding tax in all other cases
Interest: 5% withholding tax
Royalties: 6% withholding tax
Capital Gains: Capital Gains derived from the disposal of immovable property shall be taxed in the State where it is situated. Gains derived from the disposal of shares, deriving more than 50% of their value from immovable property shall be taxed in the state where the property is situated.