Double Tax Agreements

Tax Treatment of Dividends, Interest and Royalties

 

 Paid to residents of the countries shown (See note 1 below)

 Paid to residents of Cyprus

Country 

Dividends

Interest

Royalties

Dividends

Interest

Royalties

Non-treaty

 countries

nil

nil

nil (2)

     

Armenia (20)

nil

nil

nil

nil

nil

nil

Austria

10

nil

nil

10

nil

nil

Belarus

5 (18)

5

5

5(18)

5

5

Belgium

10(8)

10(6,19)

Nil

10(8)

10(6, 19)

nil

Bulgaria

5(23)

7(6)

10

5(23)

7 (6, 24)

10 (24)

Canada

15

15(4)

10(5)

15

15(4}

10(5)

China

10

10

10

10

10

10

Czech Republic

0(28)

0

0(29)

0(28)

0

0(29)

Denmark

10(8)

10(6)

nil

10(8)

10(6)

nil

Egypt

15

15

10

15

15

10

France

10 (9)

10(10)

nil (3)

10(9)

10(10)

nil (3)

Germany

10(8)

10 (6)

nil (3)

10(8)

10(6)

nil (3)

Greece

25

10

nil (12)

25(11)

10

nil (12)

Hungary

nil

10(6)

nil

5(8)

10(6)

nil

India

10(9)

10(10)

10(16)

10(9)

10(10)

15(15)

Ireland

nil

nil

nil (12)

nil

nil

nil (12)

Italy

nil

10

nil

15

10

nil

Kuwait

10

10(6)

5(7}

10

10(6)

5(7)

Kyrgyzstan (20)

nil

nil

nil

nil

nil

nil

Lebanon

5

5

nil

5

5

nil

Malta

15

10

10

nil

10

10

Mauritius

nil

nil

nil

nil

nil

nil

Moldova (20)

5(23)

5

5

nil

nil

nil

Montenegro (26)

10

10

10

10

10

10

Norway

nil

nil

nil

nil (13)

nil

nil

Poland

10

10(6)

5

10

10(6)

5

Qatar

0

0

5

0

0

5

Romania

10

10(6)

5(7)

10

10(6)

5(7)

Russia

5(17)

nil

nil

5(17)

nil

nil

San Marino

nil

nil

nil

nil

nil

nil

Serbia (26)

10

10

10

10

10

10

Seychelles

nil

nil

5

nil

nil

5

Singapore

nil

10(6,25)

10

nil

10(6,25)

10

Slovakia

10

10 (6)

5(7)

10

10(6)

5(7)

Slovenia (26)

10

10

10

10

10

10

South Africa

nil

Nil

nil

nil

nil

nil

Sweden

5 (8)

10 (6)

nil

5(B)

10(6)

nil

Syria

nil (8)

10

15 (27)

nil (8)

10(4)

15(27)

Tadzhikistan

nil

nil

Nil

nil

nil

nil

Thailand

10

15 (21}

5 (22)

10

15(21)

5(22)

Ukraine (20)

nil

nil

nil

nil

nil

nil

United Kingdom

nil

10

nil (3)

15(14)

10

nil (3)

United States

nil

10(10)

nil

5(9)

10(10)

nil


Explanatory Notes 

Notes:

1)          Under Cyprus legislation there is no withholding tax on dividends, interests and royalties paid to non-residents of Cyprus.

2)          In case where royalties are earned on rights used within Cyprus there is withholding tax of 10%.

3)          5% on film and TV royalties.

4)          Nil if paid to a Government or for export guarantee.

5)          Nil on literary, dramatic, musical or artistic work.

6)          Nil if paid to the Government of the other state.

          7)          This rate applies for patents, trademarks, designs or models, plans, secret formulas or processes, or any industrial, commercial or scientific equipment, or for information concerning industrial, commercial or scientific experience.

8)      15% if received by a company controlling less-than 25% of the voting power or by an individual.

9)          15% if received by a person controlling less than 10% of the voting power.

10)       Nil if paid to a Government bank or financial institution.

                 11)       The treaty provides for withholding taxes on dividends but Greece does not impose any withholding tax in accordance with its own legislation.

12)       5% on film royalties (apart from films broadcasted on television).

13)       5% if received by a person controlling less than 50% of the voting power.

         14)       This rate applies to individual shareholders regardless of their percentage of shareholding. Companies controlling less than 10% of the voting shares are also entitled to this rate.

15)       10% for payments of a technical, managerial or consulting nature.

16)       Treaty rate 15% therefore restricted to Cyprus legislation rate.

17)       10% if dividend paid by a company in which the beneficial owner has invested less than EUR 100.000.

               18)       If the investment is less than € 200.000, dividends are subject to 15% withholding tax which is reduced to 10% if the recipient company controls 25% or more of the paying company.

19)       No withholding tax for interest on deposits with banking institutions.

20)       Armenia, Kyrgyzstan, Moldova, Tadzhikistan and Ukraine apply the USSR/Cyprus treaty.

         21)       10% on interest received by a financial institution or when it relates to sale on credit of any industrial, commercial or scientific equipment or of merchandise.

         22)       These rates apply for any copyright of literary, dramatic, musical, artistic or scientific work. A 10% rate applies for industrial, commercial or scientific equipment. A 15% rate applies for patents, trade marks, designs or models, plans, secret formulae or processes.

              23)       This rate applies to companies holding directly at least 25% of the share capital of the company paying the dividend. In all other cases the withholding tax is 10%.

             24)       This rate does not apply if the payment is made to a Cyprus international business entity by a resident of Bulgaria owning directly or indirectly at least 25% of the share capital of the Cyprus entity.

25)       7% if paid to a bank or financial institution.

26)       Montenegro, Serbia and Slovenia apply the Yugoslavia/Cyprus treaty.

              27)       A rate of 10% applies to copyrights on literary, artistic and scientific work including cinematograph films, and films on tapes for television or radio broadcasting.

This rate applies if received by a company (excluding partnership) which

    28)     This rate applies if received by a company (excluding partnership) whichholds directly at least 10% of the shares for an uninterrupted period of no less than one year. 5% applies in all other cases.

       29)  10% for patent, trade mark, design or model, plan, secret formula or process, computer software     commercial or scientific experience.

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M. Kolokotronis + Associates personnel provides services for the last twenty years. The company’s main line of services is in the audit, bookkeeping, payroll, tax and business advisory for companies both local and international.

Our audit and tax experience range extensively in retail, investment, finance, construction, manufacturing, commission agents and services industry companies. 

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