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The double tax treaty (DTT) between Cyprus and Ethiopia signed in December 2015 entered into force on 18 October 2017 as per recent update of the Cyprus Ministry of Finance. Based on the provisions of the DTT, in the case of Cyprus the DTT will take effect as from 1 January 2018 and in the case of Ethiopia as from 8 July 2018.

Main Provisions

Dividends

In the cases where the recipient is the beneficial owner of the dividends in question, then the withholding tax shall not exceed 5% of the gross amount of the dividends.

Interest

In the cases where the recipient is the beneficial owner of the interest in question, then the withholding tax shall not exceed 5% of the gross amount of the interest.

Royalties

In the case where the recipient is the beneficial owner of the royalties in question, then the withholding tax shall not exceed 5% of the gross amount of the royalties.

Capital Gains

With respect to the capital gains tax the treaty provides that gains derived by a Cyprus company from the alienation of property located in Ethiopia shall be taxable only in Ethiopia.

Shipping and Air Transport

Gains from the sale of ships or aircraft operated in international traffic or other movable property pertaining to the operation of such ships or aircraft by a Cyprus company shall be taxable only in Cyprus being the country of the effective management and control of the company.

Permanent Establishment

The permanent establishment definition included in the treaty is in line with the definition provided in the OECD model tax convention. In particular, any building site or construction or installation project constitutes a permanent establishment only if it lasts more than six months.

Contact
Tax Advisor
Andreas Avgousti
Andreas.Avgousti@aretilaw.com

CategoryNews, Newsletters

塞浦路斯和埃塞俄比亚双重征税协定(DTT)签订于2015年12月,并且于2017年10月18日根据塞浦路斯财政部更新生效。基于DTT规定,DTT于塞浦路斯有效期截至2018年1月1日,于埃塞俄比亚有效期截至2018年7月8日。


主要规定


分红

若接收方为分红实益所有人,则预扣税不得超过分红总额的5%。

利息

若接收方为利息实益所有人,则预扣税不得超过利息总额的5%。

版税

若接收方为版税实益所有人,则预扣税不得超过版税总额的5%。

资本所得

就资本所得税来讲,该协定规定塞浦路斯公司转让埃塞俄比亚物业所得应只须在埃塞俄比亚纳税。

航运和空运

对于塞浦路斯公司出售用于国际运输的轮船或飞机或者其他与该等轮船或飞机相关的可移动财产所获得的收益而言,若该等公司的实际管理和控制均位于塞浦路斯,则其只须在塞浦路斯纳税。

常设机构

本协定项下常设机构定义与经合组织税项协定范本项下定义相同。此外,任何维持超过6个月时间的建筑地址或建造物或安装项目均构成常设机构。

联络人


税务顾问

Andreas Avgousti
Andreas.Avgousti@aretilaw.com

CategoryUncategorized