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Double Tax Treaty between Cyprus & Lithuania

The Double Tax Treaty between Cyprus and Lithuania, signed on June 2013, entered into force on the 1st January 2015.

The most significant provisions of the new treaty are highlighted below:

Dividend Payments: No withholding tax (0%) shall be applied on dividend payments, provided that: the recipient is a company and is the beneficial owner of the dividends, and has a minimum direct holding of 10% of the capital of the company in question. Otherwise dividend payments will be subject to a withholding tax of 5%.

Interest Payments: No withholding tax (0%) shall be applied.

Royalty payments: 5% withholding tax shall be applied.

Capital Gains capital gains arising from the disposal of immovable property shall be taxed in the Contracting State that the property is situated. However, gains arising from the disposal of shares in companies that hold property shall be taxable in the State of residence of the company disposing the shares.