On 24 May 2016, Cyprus and Latvia signed a tax treaty based on the OECD model convention. The treaty contains an article on the exchange of information.
Details of the Income Tax Treaty between Cyprus and Latvia have become available.
In according to the provisions of the treaty, the following withholding taxes will apply:
Dividends:
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Nil (0) withholding tax (WHT) will apply to dividends paid to a company (other than a partnership) resident in the other contracting state that is the beneficial owner of the dividends/interest
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10% in all other cases
Interest:
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Nil (0) withholding tax will apply to interest paid to a company (other than a partnership) resident in the other contracting state that is the beneficial owner of the interest
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10% in all other cases
Royalties:
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Nil (0) withholding tax will apply to royalties paid to a company (other than a partnership) resident in the other contracting state that is the beneficial owner of the royalties
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5% in all other cases
Capital gains:
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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.
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Capital gains derived by a resident of a contracting state from the disposal of shares in a company deriving more than 50% of their value, directly or indirectly, from immovable property situated in the other contracting state may be taxed in that other state.
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Gains derived by a resident of a contacting state from the disposal or shares other than those mentioned above will be taxed in the state of residence of the person disposing the shares.
The treaty will enter into force following ratification procedures of both contracting states.
The provisions of the treaty will have effect on or after 1 January following the date the treaty enters into force.