The double tax treaty between Cyprus and the United Arab Emirates has entered into force on 2/4/13 and became effective as of 1/1/2014.
The main provisions of the Treaty are the following:
- Dividend, interest and royalty payments are subject to zero withholding tax.
- Capital gains from the sale of shares including shares in “property rich” companies will be taxed in the country in which the alienator is resident.
- The Treaty contains no “Limitation of Benefits” clause