Also in the news...
UK lands trade deal with South Korea to boost jobs and exports
UK lands momentous trade deal with South Korea to boost jobs and exports
New laws bring the world of work into the 21st century
Over 15 million people across the UK are expected to benefit as the Employment Rights Act receives Royal Assent.
Brilliant Borders: Kenya's Customs goes digital
A new app will save time and money for big businesses and small traders alike, as a longstanding Kenya-UK partnership further improves cross-border trade.
Yorkshire family brewery taps into new export opportunities with Government guarantee
UKEF support helps Wold Top brewery to expand its exports into new markets.
Bond Support Scheme
Find out about the Bond Support Scheme - how it works, its benefits and how to apply.
Cyprus expands its Double Tax Treaty network with Lithuania & Guernsey
Cyprus, which has been long established as a solid economic and business centre worldwide, seeks to reinforce its title as a beneficial investment hub by expanding its double tax treaty network and creating stronger economic and trade relations with other Contracting States.
Double Taxation Agreement between Cyprus and Lithuania
In June 21st, 2013, Cyprus and Lithuania signed their first Double Tax Treaty. Since then, they ratified their Agreement and the new Agreement will enter into force on the 1st day of January 2015.
In summary the new provisions of the ratified agreement are:
- Dividends: No withholding tax (0%) where the recipient is a company and
- is the beneficial owner of the dividends
- owns at least (minimum) 10 % capital of the company; in a different case a 5% withholding tax shall be applicable
- Interest: No withholding tax (0%)
- Royalties: 5% withholding taxprovided that the recipient is be the beneficial owner
- Capital Gains: gains, resulting from the disposal of shares, are taxable in the country in which the alienator of the shares is tax resident
Double Taxation Agreement between Cyprus and Guernsey
On 15 July 2014 Cyprus and Guernsey signed a double taxation avoidance Agreement, which will enter into force upon the ratification of the Agreement by the two Contracting States. The Agreement is based on the OECD Model Convention for the Avoidance of Double Taxation on Income and on Capital.
Briefly the main provisions of the Agreement between the two Contracting States:
- Dividends: 0% withholding tax
- Interest: 0% withholding tax
- Royalties: 0% withholding tax
- Capital Gains: - gains, resulting by a resident of one of the two countries (ex. A), from the disposal of immovable property in the other country (ex. B), will be taxed in the country where immovable property is situated (ex. B).
– gains, resulting from the disposal of shares, are taxable in the country in which the alienator of the shares is tax resident.