The first-time Double Tax Treaty (DTT) between Cyprus and Luxembourg signed on 8 May 2017 is effective as from 1 January 2019 based on a recent update of the Cyprus Ministry of Finance.
The DTT provides for a 0% withholding tax (WHT) rate on interest and royalties. For dividends, a 0% WHT rate applies for corporate investors holding directly at least 10% of the capital of the paying company; a 5% WHT rate applies in all other cases of dividends. For background and more details, please refer to our Tax Update Newsletter N-10-2017.
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