Among the numerous double tax agreements signed by Cyprus, the country also concluded one with Greece in 1968. In this article, our lawyers in Cyprus briefly analyze the Cyprus-Greece double tax treaty and its provisions.
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According to the Cyprus – Greece double tax treaty, business profits gained in one of these countries are taxed as follows:
Under the above mentioned double tax treaty, dividends paid by a company based on one of the contracting jurisdictions to a resident of the other state can be taxed in this other state.
However, the tax applied to the dividends in the other country shall not be greater than 25% of the gross dividend amount.
In 2016, Cyprus and Greece concluded certain provisions of the double tax treaty which was previously signed between the two states.
These provisions state that the withholding tax in Cyprus has to also include the corporate tax payable by Cypriot companies on their income.
However, these new provisions make it clear that the withholding tax in Cyprus also includes the corporate tax that is due by local businesses on their income.
If you would like to learn more about the Cyprus – Greece agreement and its provisions, we invite you to get in touch with our law firm in Cyprus.