NEWS

• Posted October 13, 2014

OCTOBER - INTERNATIONAL TAX UPDATES

New double tax treaty with Lithuania

On 21st June 2013 the first double tax treaty was signed between Cyprus and Lithuania. The provisions of the new treaty are expected to apply from 1st of January 2015.

We set out below the maim provisions of the new treaty:

• Interest: 0% withholding tax on interest payments
• Dividend: 0% if the beneficial owner is a company which holds directly at least 10% of the share capital of the company paying the dividends. 5% in all other cases.
• Royalty: 5% withholding tax on royalty payments.

It should be further noted that:

• Cyprus retains the exclusive taxing rights on disposals by Cyprus companies of shares in Lithuanian companies, and
• The Treaty contains no 'Limitation of Benefit' clause.

Should you need any additional information or clarifications in relation to the new treaty between Cyprus and Lithuania, feel free to contact us at [email protected].