Cyprus: Cyprus and Georgia sign tax treaty protocol
International Tax Review is part of the Delinian Group, Delinian Limited, 4 Bouverie Street, London, EC4Y 8AX, Registered in England & Wales, Company number 00954730
Copyright © Delinian Limited and its affiliated companies 2024

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Cyprus: Cyprus and Georgia sign tax treaty protocol

Chatzimatthaiou-Myranda-100

Myranda Chatzimatthaiou

On May 13 2015, during the 24th annual meeting of the European Bank for Reconstruction and Development (EBRD) in Tbilisi, Georgia and Cyprus signed an agreement for the avoidance of double tax payment (double tax treaty).

The agreement signed by Cyprus and Georgia is harmonised with the OECD Model Tax Convention with some modifications. In particular, any building site or construction or installation project, or any supervisory activities in connection with such site or project will now only constitute a permanent establishment if it lasts more than nine months.

Moreover, the withholding tax rate for dividends is set at 0% of the gross amount and withholding tax on interest is also zero-rated, as is withholding tax on royalties.

Capital gains derived by a resident of a contracting state from the disposal of immovable property situated in the other contracting state may be taxed in that other state.

Capital gains that arise by a resident of a contracting state from the disposal of shares in a company are to be taxed only in the contracting state where the alienator is resident.

The agreement has been signed in order to strengthen the economic relations between the two countries, to eliminate the fiscal evasion with respect to taxes on income and on capital and in order to attract investments in both countries.

The treaty was published in the Official Gazette of the Republic of Cyprus on May 29 2015 and will enter into force on January 1 2016, provided that Cyprus and Georgia confirm that their formal ratification procedures have been completed.

Myranda Chatzimatthaiou (myranda.chatzimatthaiou@eurofast.eu)

Eurofast Cyprus Office

Tel : +357 22 699 222

Website: www.eurofast.eu

more across site & bottom lb ros

More from across our site

Jeremy Brown arrives at the firm after a near 16-year career with Deloitte
PwC could elect a woman into the senior leadership position for the first time; in other news, KPMG Australia has extended its CEO’s term
The Senate report into PwC’s scandal is titled ‘The cover up worsens the crime’
Law firms that are conscious of their role in society are more likely to win work, according to a survey of over 23,000 in-house professionals
The firm’s tax business generated a quarter of HLB’s overall revenues in 2023
While successful pillar two implementation will require collaboration across all units, a combination of internal and external tax advice is at the centre of the effort
Binance has also been accused of manipulating foreign exchange rates via currency speculation and rate-fixing
Six individuals should have raised questions over information they received but did not breach professional standards, according to the firm
The partnership of KPMG UK has installed Holt for a second term as CEO and senior partner; in other news, a Baker McKenzie partner has sued the IRS
HSBC has settled a claim originally worth £240m relating to a failed film tax relief scheme without admitting liability or wrongdoing
Gift this article