On July 25th, 2014 Cyprus and Switzerland have signed an Income and Capital Tax Treaty agreement. The agreement is the first between the two countries and will contribute to the development and improvement of financial and bilateral relations. The agreement will come into force as soon as it has been ratified by both countries.
The provisions of the treaty are estimated to come into effect from January 1st of the next year.
According to the agreements of the treaty, the following withholding taxes will apply:
Dividends:
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0% if the beneficial owner is a company (other than a partnership) whose capital is divided, in whole or in part, into shares and which holds directly at least 10% of the capital of the company paying the dividends for an uninterrupted period of at least 1 year.
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0% if the beneficial owner is a pension fund or other similar institution offering pension schemes in which individuals can participate for their retirement pension.
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15% in all other cases.
Interest: 0%.
Royalties: 0%
Source: Offtax2014, posted on 29.07.2014. Please click here to access the original article.
More information:
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