Double Taxation Treaty (DTT) between the Czech Republic and the Republic of Cyprus was officially published on 22 December 2009. The agreement came into force 26 November 2009.
The new DTT between the Czech Republic and the Republic of Cyprus stipulates following tax rates:
Dividends:
Treaty rate 0% of the gross amount if the beneficial owner is a company (other than a partnership) which owns directly at least 10% of the capital of the company paying the dividends where such holding is being possessed for an uninterrupted period of no less than one year Treaty rate 5% of the gross amount in all other cases
Interest:
Treaty rate 0% (Interest arising in a Contracting State and beneficially owned by a resident of the other Contracting State shall be taxable only in that other State)
Impact on investors: DTT tax rates changed for investors from Cyprus.
D.C.