Cyprus – Saudi Arabia double tax treaty

On 3rd January 2018 Cyprus signed a tax treaty with Saudi Arabia the provisions of which will come into effect on 1st January following the date the treaty comes into force.

    It covers the following taxes:
  1. Dividends – There is no withholding tax on dividends if the investing company holds at least 25% of the capital of the company that is paying the dividends. In all other cases the withholding tax is 5%
  2. Interest – There is no withholding tax on interest as far as the recipient of the interest is the beneficial owner of the income
  3. Royalties – As far as the recipient of the income is the beneficial owner a 5% withholding tax is imposed on royalties for the use or the right to use industrial, commercial or scientific equipment. In all other cases the withholding tax is 8%
  4. Capital gains tax – Gains arising from the disposal of a substantial participation (25% and over at any time within the 12 months prior to the disposal) in the capital of a company which is resident of a contracting state may be taxed in that contracting state

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