The treaty between Cyprus and Guernsey that was signed on July 29, 2014 has entered into force on March 4, 2015. The provisions of the treaty will come into effect on 1 January 2016.
The treaty is based on the OECD Model Tax Convention framework with some modifications. It applies to taxes on income as well as on gains from alienation of movable or immovable property. For Guernsey, the treaty covers income tax, whereas for Cyprus it covers corporate and personal income tax, defense tax and capital gains tax.
In accordance to the provisions of the treaty the following withholding taxes will apply:
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Dividends: 0%
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Interest: 0%
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Royalties: 0%
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