On the 14 November 2014 a new DTT was concluded between Cyprus and Iceland at the Embassy of Cyprus in Stockholm.
Among others, the Treaty provides for the following:
- Dividend Payments: 5% withholding tax shall be applied.
- Royalty payments: 5% withholding tax shall be applied.
According to the agreement, the deduction method (credit method) is applied in order to avoid double taxation.
The DTT follows the OECD Model Convention for the Avoidance of Double Taxation on Income and on Capital.
For any further legal advice on the Cyprus double tax treaties and on how you can implement them in your international tax planning strategy, please get in touch.