TAX ALERT – Double Tax Treaty with Jersey

TAX ALERT – DOUBLE TAX TREATY WITH JERSEY

Cyprus has signed a new Double Tax Treaty (DTT) with Jersey. This DTT is expected to come into force on 1 January 2017 on the understanding that the ratification procedures from both countries will be completed during 2016.

The new DTT is based on the OECD framework with some minor modifications. The main provisions of this DTT are the following:

  • 0% withholding tax on dividends;
  • 0% withholding tax on interest;
  • 0% withholding tax on royalties;
  • Capital gains tax on the sale of shares subject to tax at the country of the seller – no property rich clause.

At your disposal for any further assistance or clarifications required towards this.