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On 3 January 2018, the governments of Cyprus and Saudi Arabia signed an agreement for the Avoidance of Double Taxation (DTA). The DTA was signed during the official visit of the President of the Republic of Cyprus to Saudi Arabia and is based on the OECD Model Tax Convention.

Main Provisions

Withholding tax rate on interest payments

  • 0% withholding tax

Interest includes income from Debt-Claims arising in a Contracting State and paid to a resident of the other Contracting State.

Withholding tax rate on dividend payments

Dividends paid from a Saudi company to a Cyprus company will not be subject to any Saudi withholding tax, provided that the Cyprus company is the beneficial owner of the dividends and it holds at least 25% of the capital of the Saudi company. Otherwise, there will be a 5% Saudi withholding tax.

Withholding tax rate on royalties payments

Royalties paid from a Saudi company to a Cyprus company will be subject to the below Saudi withholding taxes, provided that the Cyprus company is the beneficial owner of the royalties:

  • 5% in the case of royalties paid in relation to industrial, commercial or scientific equipment.
  • 8% in all other case

Permanent Establishment

The definition of the permanent establishment in the context of the double tax treaty is a fixed place of a business through which the business of an enterprise is wholly or partly carried on. Any building site or construction or installation project constitutes a permanent establishment only if it lasts more than 6 months.

Capital Gains Tax

Gains from the disposal of immovable property are taxed in the country where the immovable property is situated.

Gains from the alienation of substantial participation (at least 25%) in a company which is resident of a Contracting State may be taxed in that Contracting State.

Shipping and Air Transport

Profits from the operations of ships or aircraft in international traffic shall be taxed only in the Contracting State in which the place of effective management is situated.

Directors’ fees

Directors’ fees derived by a resident of a Contracting State in his capacity as a member of the board of directors of a company which is a resident of the other Contracting State may be taxed in that other State.

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

 

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塞浦路斯和沙特阿拉伯政府在2018年1月3日签订避免双重征税协议 (DTA)。DTA在塞浦路斯总统对沙特阿拉伯进行正式访问期间签订,并且基于亚太经合组织的税项协定范本。


主要规定

 
利息支付预扣税率

  • 0%的预扣税

利息包括源于缔约国内债务权的收入,以及支付至另一方缔约国居民的债务权收入。

 
分红支付预扣税率

由沙特公司向塞浦路斯公司支付的分红不会由沙特收取任何预扣税,前提为该等塞浦路斯公司为分红的实益所有人并持有该沙特公司至少25%的资本。否则沙特将收取5%的预扣税。

版税支付预扣税率

由沙特公司向塞浦路斯公司支付的版税会由塞浦路斯收取预扣税,前提为塞浦路斯公司为版税的实益所有人。

  • 若版税与工业、商业或科学仪器相关,则预扣税率为5%。
  • 其他情况下预扣税率为8%。


常设机构

双重征税协定下常设机构定义为某企业运营其全部或部分业务的固定营业场所。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。

资本所得税

处置不动产所得需在该等不动产所在国家纳税。

转让缔约国内居民公司大量参与权(至少25%)所获收益可能需要在该等缔约国内纳税。

船运和空运

国际交通中船运或空运业务利润只需在有效管理层所在地的缔约国纳税。

董事费用

缔约国居民企业中身为缔约国居民的董事会成员所获得的董事费用可能会在另一国家纳税。

联络人


税务顾问
Andreas Avgousti
Andreas.Avgousti@aretilaw.com
 

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