Monday, 28 November 2011 14:56

Ratification of the Double Taxation Avoidance Agreements (DTAA) of Cyprus with Armenia, Denmark and Slovenia

According to an announcement dated 14 November 2011 of the Inland Revenue Department of the Cyprus Ministry of Finance the internal ratification procedures of each state for the ratification of the DTAAs signed between Cyprus and the following countries have been completed:

(a) Armenia,
(b) Denmark and
(c) Slovenia.

The provisions of the abovementioned DTAAs will be in full force as of 1 January 2012.

The most important withholding tax rates provided for in the DTAAs are:

                                  Armenia                     Denmark                           Slovenia                      
Dividends 0%/5% (1) 0%/15% (2) 5%
Interest 5% 0% 5%
Royalties 5% 0% 5%

 

 

Notes
(1) 0% if the beneficial owner’s investment in the company paying the dividend is more than Euro150.000 and 5% in all other cases.
(2) 0% if the shareholder is a company directly owning 10% for more than 12 months if the share capital of the company paying the dividend or if it is a pension related fund and 15% in all other cases.

For questions, comments and selection of topics that might interest you please contact the author of the column:

Charilaos Hadjiioannou, BSc, ACA

REANDA Cyprus Limited

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