Cyprus and Iran signed an agreement to avoid double taxation in the two jurisdictions. The treaty deals specifically with income tax for companies and individuals doing business in the two countries and it marks the beginning of a better collaboration between the two states as well as improved tax evasion avoidance. Cyprus has signed a number of such double tax treaties with other countries worldwide.
Bilateral benefits for the two countries
The agreement for the avoidance of double taxation marks the beginning of a new cooperation path between Cyprus and Iran. New opportunities will not be available for investors from one country who want to open businesses in the other. This treaty is also important in the European context of relationships developed with countries in the Middle East.
Iran has a strategic geographical location in the Middle East and investors can use this as a bridge between Cyprus and the rest of Europe and eastern Asia. The Iran Deputy Minister said during the signing ceremony that he hopes that the agreement will bring peace, prosperity and security to the two countries.
The agreement for the avoidance of double taxation
signed with Iran is the 48th of this kind signed by Cyprus. The country has a good foreign investment policy and welcomes foreign investors
from around the world.
The double tax agreement regarding income
The purpose of the double tax agreement
is to avoid overlapping taxes imposed by the government of both parties. This is especially advantageous for individuals or companies who have businesses that produce income in both of the signatory states. Branches in Cyprus
and those in Iran will benefit from advantageous taxation and dividends paid between a companies in one of the country and their branches incorporated in the other country will have reduced withholding rates.