ARTICLES  

Cyprus - Egypt Double Tax Treaty

A double tax treaty with Egypt was signed on 8 October 2019, the provisions of which will take effect on or after 1 January following the date the treaty enters into force.

Currently Egypt levies withholding taxes of 10% on dividends and 20% on interest and royalties. Under the Cyprus – Egypt double tax treaty the taxes that will be levied are as follows: -

  • Dividends – a 5% withholding tax is levied if the dividends are paid out to a foreign owner who holds at least 20% of the share capital of the company paying the dividends for a period of at least 365 days.
  • Interest – a 10% withholding tax is levied on interest payments if the recipient is the beneficial owner of such interest.
  • Royalties - a 10% withholding tax is levied on royalty payments if the recipient is the beneficial owner of such royalties.
  • Capital gains – the country of residence of the seller maintains the exclusive taxing rights arising from the disposal of shares. However gains derived by a resident of a contracting state from the alienation of shares or interest in the capital of a company which derives more than 50% of their value directly or indirectly from immovable property situated in that other contracting state, maybe taxed in that other contracting state, with the exception of gains derived from the alienation of shares listed on an approved stock exchange.

 

Latest news

Extension to the filing date of tax returns

The following deadlines have been extended by the Cyprus government for the filing of tax returns by companies and individuals: The last date for the filing of an individual's tax return (IR1) for the year 2020 and settlement of any tax due will be 30 September 2021 without the imp...…

Published: Saturday 24 April, 2021

Extension for filing of corporate tax returns

On 12 March 2021 the Tax Department issued an announcement in relation to the extension of the deadlines for the submission of the 2019 corporate income tax return and the 2019 income tax return filed by individuals preparing audited Financial Statements. The above deadlines are extended to 30 Se...…

Published: Saturday 27 March, 2021

Interest and dividends – declarations through Taxisnet

There are new declarations on Taxisnet through which Special Defence Contributions and GESY should be recorded on the payment of interest and dividends. The printed forms 61AT and 61AM are now also available in electronic form and can be submitted through the Taxisnet as follows: …

Published: Wednesday 27 January, 2021