Cyprus: A Preview Of The New Cyprus-Latvia Double Taxation Agreement
The draft double taxation agreement between Cyprus and Latvia has been published by the Latvian authorities, allowing practitioners a “sneak preview” of its provisions. The draft agreement requires the approval of the Latvian Cabinet of Ministers before signature. After signature it will need to be ratified by both countries before taking effect.
The agreement closely follows the form of the latest OECD Model Convention but also includes provisions from the 2011 United Nations Model Double Taxation Convention between Developed and Developing Countries (the UN Model). The key features are outlined below.
The categories of taxes covered by the agreement are:
the Latvian enterprise income tax and personal income tax; and
the Cyprus income tax, corporate income tax, capital gains tax and special contribution for the Defence of the Republic (commonly referred to as SDC tax).