The Republic of Cyprus and the Government of Iran signed an Income Tax Treaty on August 4, 2015 for the Avoidance of Double Taxation. The treaty will come into force after the two countries exchange ratification instruments.
Under the treaty, the withholding tax on dividends is 5% if the beneficial owner is a company (other than a partnership) which holds directly at least 25% of the capital of the company paying the dividends; or 10% in all other cases. Withholding tax on interest is 5% and royalties is 6%.
The provisions of the treaty will have effect from 1 January of the calendar year next following that in which the agreement enters into force.
