On the 4th of August a Cyprus and Iran signed a Double Tax Treaty. 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.
In a nutshell, the main provisions are the following:
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.
For further information on how you can implement Double Tax Treaties in your tax planning strategy, please get in touch.
