The income tax treaty between Cyprus and Latvia was signed on 24 May 2016. The treaty is the first of its kind between the two countries.
The treaty covers Cyprus income tax, corporation tax, special contribution for the Defence of the Republic, and capital gains tax. It covers Latvian enterprise income tax and personal income tax.
The following capital gains derived by a resident of one Contracting State may be taxed by the other State:
Gains from the alienation of other property by a resident of a Contracting State may only be taxed by that State.
Both countries apply the credit method for the elimination of double taxation.
The treaty will enter into force once the ratification instruments are exchanged, and will apply from 1 January of the year following its entry into force.
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