Cyprus: Cyprus expands double tax treaty network with Lithuania agreement

Abstract

A double tax treaty was signed between Cyprus and Lithuania in June 2013. The treaty, which follows the OECD Model Convention for the avoidance of Double Taxation on Income and on Capital, has been ratified by the two contracting states and has entered into force as of January 1, 2015. According to the DTT there is no withholding tax on dividend payments on the basis that the receiving company is the beneficial owner of said income and owns at least 10% of the capital in the dividend paying company. In a different case a 5% withholding shall be applicable. Further, no withholding tax shall be suffered on interest payments from one contracting state to the other, and a 5% withholding tax on royalty payments.