Cyprus has ratified its income tax treaty with Kyrgyzstan, with the ratification published in the Official Gazette on 26 June 2026, replacing the 1982 tax treaty between Cyprus and the former Soviet Union as it applies to both countries.
Cyprus has ratified the income tax treaty with Kyrgyzstan, with the ratification published in the Official Gazette on 26 June 2026.
Signed on 8 June 2026, the agreement is expected to strengthen economic, trade, and investment ties between the two countries by improving the tax framework, reducing administrative and tax burdens, and helping to prevent tax evasion and avoidance. It also provides for the exchange of tax information and establishes mutual administrative procedures for resolving tax disputes.
The treaty covers Cyprus’s income tax, corporate income tax, the special contribution for the Defence of the Republic, and capital gains tax, alongside the Kyrgyz tax on profits of legal persons and individual income tax.
Under the treaty, dividends, interest, and royalties may be taxed in both the recipient’s state and the source state, with the source state’s taxing rights subject to caps. Dividend withholding is limited to 7% for qualifying corporate shareholders holding at least 25% of the paying company’s capital, and 10% in all other cases. Both interest and royalties are capped at 8%.
The new treaty will replace the 1982 tax treaty between Cyprus and the former Soviet Union as it applies to Cyprus and Kyrgyzstan.
The treaty will enter into force upon the exchange of ratification instruments and will take effect from 1 January of the year following its entry into force.
Earlier, the Cyprus Ministry of Finance announced that Cyprus and Kyrgyzstan signed an income tax treaty on 8 June 2026.
