On 24 May 2016, Cyprus signed its first tax treaty with Latvia, an EU member state bordered by Belarus, Estonia, Lithuania and Russia.
The treaty, which was published in the Cyprus official gazette on 3 June 2016, is based on the OECD model treaty, and its main provisions are as follows:
Dividends and interest: Nil withholding tax (WHT) will apply to dividends or interest paid to a company (other than a partnership) resident in the other contracting state that is the beneficial owner of the dividends/interest; otherwise, the rate will be 10%.
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