Double tax treaties
are important for businessmen as they contain numerous provisions related to tax deductions
or exemptions. Austrian investors
interested in the business environment available in Cyprus
can benefit from the provisions of the double tax agreement (DTA)
signed by the representatives of the two states. The treaty
is mutually applicable for the citizens of Cyprus and Austria
and it provides a regulatory framework for the avoidance of double taxation
for both natural persons or legal entities and our lawyers in Cyprus
can offer legal assistance on the ways in which its provisions are imposed here.
The purpose of the Cyprus- Austria DTA
The persons interested in the commercial legislation available in Cyprus
must know that the treaty for the avoidance of double taxation
between Cyprus and Austria
was signed on 20 March 1990. It was enforced in order to establish a legal framework for the avoidance of double taxation
and on capital gains
, applicable to residents of the contracting states.
Taxes covered by the Cyprus – Austria DTA
Article 2 of the agreement
signed by the two states prescribes a detailed list of the taxes
applied on the income
and the capital
of the tax residents of Cyprus and Austria
As such, Austrian authorities imposed the following taxes:
• the income tax;
• the corporation tax;
• the director’s tax;
• the capital tax;
• the tax on property;
• the tax on commercial and industrial companies;
• the tax on wages;
• the land tax;
• the tax on agricultural and forestry enterprises;
• the tax applicable on vacant lots.
Further on, the agreement refers to the taxes applied in Cyprus:
• the income tax;
• the special contribution;
• the capital gains tax;
• the immovable property tax.
Our law firm in Cyprus
can provide in-depth details on each of the four taxes
applied in Cyprus
to individuals or commercial companies.
It is important to know the convention also stipulates that the local authorities of the two contracting states can also impose similar taxes applied after the date when the agreement was concluded. In such a case, the representatives of the respective state which imposed a new tax must notify competent authorities in the other contracting state.
Persons who need to receive further details on the provisions of the Cyprus – Austria double tax agreement
are invited to contact our Cypriot law firm