THURSDAY, 18 JAN 2018

 

CONNECT

Facebook Linked In Twitter
MTN_07/07-10/04_728x90px
GloriaJeans_266x90px
IMH LTD

Demetriades: Cyprus Has Taken Important Steps in the Past Five Years in the Aviation Industry

Nicos Nicolaides: Limassol Planning to Become Top Cruise Destination

IMH LTD
MTN_07/07-10/04_468x60px

PROFESSIONAL SERVICES

brought to you by PWC

Double Tax Treaty between Cyprus and Saudi Arabia for the Avoidance of Double Taxation

Double Tax Treaty between Cyprus and Saudi Arabia for the Avoidance of Double Taxation

The double tax treaty for the avoidance of double taxation between Cyprus and Saudi Arabia was signed on 3 January 2018. The treaty is expected to  be  ratified  and  come  into  force  as  from  1 January 2019.

The new treaty is based on the Organisation for Economic Co-operation and Development (OECD) Model Tax Convention framework, with some modifications.

The treaty applies to taxes on income as well as on gains from alienation of movable or immovable property. In the case of Saudi Arabia, the treaty covers the Zakat and the income tax (including the natural gas investment tax), whereas, in the case of Cyprus, it covers corporate and personal income tax, defense tax and capital gains tax.

 

Dividends

The treaty provides for withholding taxes on dividends at the following rates:

There is no withholding tax in cases where there is at least 25% participation by a company that is tax resident in the receiving jurisdiction.
In all other cases the withholding tax is 5%.
 

Interest

There is no withholding tax on interest, as long as the recipient of the interest is the beneficial owner of the income.

 

Royalties

The treaty provides for withholding taxes on royalties at the following rates (as long as the recipient of the royalties is the beneficial owner of the income):

5% in cases where the royalties are paid for the use of, or the right to use, industrial, commercial or scientific equipment
in all other cases the withholding tax is 8%

 

Capital gains

The treaty provides that gains arising from the disposal of shares of a substantial participation in the capital of a company which is resident of a Contracting State may be taxed in that Contracting State.

A person is considered to have a substantial participation when this participation is at least 25% of the capital of that company, at any time within twelve months prior to the disposal of the shares.

MORE ON PROFESSIONAL SERVICES

EY Transaction Advisory Services wins three Mergermarket M&A Awards

EY’s Transaction Advisory Services (TAS) practice has been awarded ...

Double Tax Treaty between Cyprus and Saudi Arabia for the Avoidance of Double Taxation

The double tax treaty for the avoidance of double taxation between Cyprus and Saudi ...

FROM AROUND GOLDNEWS

   

Tourist Arrivals Increase by 12.5% in December 2017

On the basis of the results of the Passengers Survey, arrivals of tourists reached 98,924 in December 2017 compared to 87.927 in December 2016, recording an ...
   

Applications for Registration of New Companies Increase in 2017

The number of applications for the registration of new companies in Cyprus increased for the fourth consecutive year in 2017, according to the Department of ...
   

Nicos Nicolaides: Limassol Planning to Become Top Cruise Destination

Limassol Municipality is looking to re-energise the interest of cruise organisers on the basis of the city’s strategic planning to become a top cruise ...
   

IronFX Changes Name of Cypriot Subsidiary

IronFX has changed the name of its registered company in Cyprus, the official registrar shows. The firm’s name has been amended to Notesco Financial ...
   

Demetriades: Cyprus Has Taken Important Steps in the Past Five Years in the Aviation Industry

Transport, Communications and Works Minister Marios Demetriades said that Cyprus has taken significant steps in the past five years in the field of aviation, a ...
   

CIPA Unveils New Strategy for 2017-2020

The Cyprus Investment Promotion Agency (CIPA) has unveiled its new strategy for the 2017-2020 period, the organization’s updated brand name “Invest ...
   

Apple to Pay $38bn on Foreign Cash Pile

Apple will pay about $38bn (£27.3bn) in tax on the roughly $250bn cash pile it holds outside the US following recent changes to American tax rules. ...
   

Annual Inflation down to 1.4% in the Euro Area

Euro area annual inflation was 1.4% in December 2017, down from 1.5% in November. In December 2016, the rate was 1.1%. European Union annual inflation was 1.7% ...
 

YOUR COMMENTS

HEADLINES

MOST POPULAR

Deloitte_2016_300x250px
Gold_Digital_Edition_300x250px

IMH LTD