Cyprus: Income tax treaty with Switzerland, effective 2016
An income tax treaty between Cyprus and Switzerland has entered into force, and will be effective 1 January 2016. 10 December 2015
The Cyprus-Switzerland income tax treaty does not include a limitation on benefits (LOB) clause.
Withholding tax provisions
The treaty includes the following withholding tax provisions:
- Dividend payments subject to a 15% withholding tax, or 0% if the beneficial owner (not a partnership) holds directly 10% of the capital of the company paying the dividend for an uninterrupted one-year period
- Interest payments are exempt from withholding tax
- Royalty payments are exempt from withholding tax
The treaty also includes rules for the tax treatment of capital gains.
Read a 2015 report [PDF 314 KB] prepared by the KPMG member firm in Cyprus: Cyprus – Switzerland Double Tax Treaty enters into force
