The tax treaties signed between Cyprus and Iran and Cyprus and Jersey enter into force as of 1 January 2018, a development which further enhances Cyprus positioning as a preferred hub for international investments and tax planning.
Regarding tax treaty with Iran visit our earlier publication for details:
The main provisions regarding tax treaty with Jersey are analyzed below:
Based on the new treaty the definition of permanent establishment also includes a building site or construction or installation project or any supervisory activities in connection with such site or project constitutes a permanent establishment only if it lasts more than 12 months (definition in compliance with OECD model).
The withholding tax rate is set at 0%
The withholding tax rate on interest is set at 0%.
The withholding tax rate on royalties is set at 0%.
Gains from the disposal of immovable property are taxed in the country where the immovable property is situated. Capital gains arising from the disposal of shares deriving more than 50% of their value directly or indirectly from immovable property in the other Contracting State may be taxed in that other State. Other capital gains from the alienation of any other property are taxable only in the place of residence of the alienator.