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8/12/2019 DTC agreement between Cyprus and Lithuania
1/26
CONVENTION
BETWEEN
THE
GOVERNMENT
OF
THE
REPUBLIC
OF
LITHUANIA
AND
THE
GOVERNMENT
OF
THE
REPUBLIC
OF
CYPRUS
FOR
THE
AVOIDANCE
OF
DOUBLE
TAXATION
AND
THE
PREVENTION
OF
FISCAL
EVASION
WITH
RESPECT
TO
TAXES
ON
INCOME
The Government
of
the
Republic
of
Lithuania
and
the
Government
of the
Republic
of
Cyprus,
Desiring
to
conclude
a Convention
or
the
avoidance
of double
taxation
and
the
preventionof fiscal
evasion
with
respect
o taxes
on
income,
Have agreed
as
ollows:
Article I
Persons
Covered
This Convention
shall
apply
to
persons
who
are residents
of
one
or both
of
the
Contracting
States.
Article
2
Taxes
Covered
1.
This
Convention
shall
apply
to
taxes
on
income
imposed
on
behalf
of
a
Contracting
State
or
of its
political subdivisions
or
local
authorities,
rrespective
of
the
manner
n which
they
are
evied.
Z.
There
shall
be
regarded
as
taxes
on
income
all
taxes
imposed
on
total
income,
or on
elements
of
income,
ncluding
axes
on
gains
rom
the
alienation
of movable
or
immovable
property,
as
well
as taxes
on
the
total
amount
of
wages
or
salaries
paid by
enterprises.
8/12/2019 DTC agreement between Cyprus and Lithuania
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The
existing
taxes
o
which
the
Convention
shall
in Cyprus:
(i)
the
income
tax;
(iD
the
corporate
ncome
tax;
(iii)
special
contribution
for the
Defence
of the
(iv) the
capital
gains ax;
apply
are
n
particular:
(hereinafter
eferred
o
as "Cyprus
ax");
b)
in
Lithuania:
(i)
the
Profit
tax;
(ii)
the
income
ax;
(hereinafter
eferred
o
as
"Lithuanian
tax")'
4.
The
Convention
shall
apply
also
to
any
identical
or
substantially
similar
taxes
that
are
imposed
after
the
date
of
signature
of
the
Convention
in
addition
to,
or
in
place
of,
the
existing
taxes.
The
competent
authorities
of
the Contracting
States
shall
notify
eachother
of
any
significant
changes
hat
have
been
made
n
their taxation
laws.
a
J .
a)
Republic;
l .
a)
Article
3
General
Definitions
For
the
purposes
of
this
Convention,
unless
he
context
otherwise
requires:
the
term "cyprus"
means
the
Republic
of
cyprus
and,
when used
in
a
geographicalsense, ncludes
the
national
territory,
the
territorial
sea
hereof
as
well
aS
any
area
outside
he
territorial
sea,
ncluding
the
contiguous
zone'
the
exclusive
economic
zone
and
the
continental
shelf,
which
has
been
or
may
hereafter
be
designated,
under
the
laws
of
cyprus
and
in
accordance
with
international
law,
as
an
area
within
which
Cyprus
may
exercise
sovereign
ights
or
urisdiction;
the
term
"Lithuania"
means
he
Republic
of
Lithuania
and,
when used
n
the
geographical
sense,
means
he
territory
under
its
sovereignty
and
other
areas
over
which
the
Republic
of
Lithuania
exercises
sovereign
rights or
iurisdiction
n
accordance
ith
intemational
aw;
b)
8/12/2019 DTC agreement between Cyprus and Lithuania
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i)
the
terms
"a Contracting
State"
and
"the
other
contracting
state"
mean
Lithuania
or
Cyprus,
as he
context
requires;
the
term
"person" ncludes
an
individual,
a company
and
any
other
body
of
persons;
the
term
"company"
means
any
body
corporate
or
any entity
that
is
treated
as a
body
corporate
or
tax
purposes;
the
terms
"enterprise of a
contracting
State"
and
"enterprise
of the
other
Contracting
State"
mean
respectively
an
enterprise
arried
on
by a resident
of a
Contracting
State and
an
enterprise
carried
on by a resident
of the
other
Contracting State;
the
term
"international
traffic"
means
any
transport
by a
ship
or aircraft
operated
by
an enterprise
of a contracting
State, except
when
the
ship or
aircraft s
operated
olely
between
laces
n the
other
Contracting
State;
the
term
"competent
uthority"
means:
(i)
in
Cyprus, he
Minister
of Finance
or his
authorised
epresentative;
(ii)
in
Lithuania,
the
Minister
of Finance
or his
authorised
representative;
the term
"national"
means:
(i)
any
ndividual
possessing
he citizenship
of
a
Contracting
State;
(ii)
any legal
person,
partnership
or
association
deriving its
status
as
such from the
laws in force in
a Contractins
State.
2. As
regards he
application
of the Convention
at any time
by a
Contracting
State,
any term not
defined
herein shall,
unless he context
otherwise equires,
have
the
meaning
hat it has
at that time
under the law
of that State or
the
purposes
of the
taxes o
which
the
Convention applies,
any meaning
under the applicable
ax laws
of that State
prevailing
over a meaning
given
to the term
under other laws
of that State.
c)
d)
e)
0
s)
h)
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Article 4
Resident
l.
For the
purposes
of this
Convention,
he term
"resident
of a
Contracting
State"means
any
person
who,
under
he aws
of that
State,
s liable
to tax
therein
by reason
of
his domicile,
residence,
place
of management, lace
of incorporation
or
any
other
criterion
of a similar
nature,
and also
ncludes
hat State,
any
political
subdivision
and any
local
authority
thereof.
This
term, however,
does not include
any
person
who
is liable
to
tax
in
that
State n respect
only of income
from
sources n
that
State or
capital
situated
therein.
2.
Where
by
reason
of the
provisions
of
paragraph
an individual
is
a resident
of
both contracting
States, hen
his status
hall
be
determined
s ollows:
a)
he
shall
be deemed
o be a resident
only
of the
State n which
he has
a
permanent
home
available o him;
if he has
a
permanent
home
available o
him in
both
States, e shall
be deemed o
be a resident
only of the
Statewith
which his personal and economic relations are closer (centre of vital
interests);
if the
State in which
he has his
centre
of vital interests
cannot
be
determined,
or
if
he has not
a
permanent
home
available to him
in either
State,
he
shall be deemed
o be a residentonly
of the
State
n which
he has
an habitualabode:
if
he has an habitual
abode n both States
or in neither of them,
he shall be
deemed o
be a residentonly
of
the
Stateof which he is
a national;
if he is a
national of both
States
or
of neither of them, the
competent
authorities
of the Contracting
States shall settle the
question
by mutual
asreement.
3.
Where by reason
of the
provisions
of
paragraph
1 a
person
other than
an
individual
is a resident
of both
Contracting States, he competent authorities
of the
Contracting
Statesshall endeavour o
settle he
question
by mutual agreement
n order to
determinehe modeof applicationof theConvention o suchperson.
b)
c)
d)
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Article
5
Permanent
Establishment
1.
For
the
purposes
of
this
Convention, he
term
"permanent
establishment"
means
a fixed
place
of
business hrough
which
the
business
of an enterprise
s
wholly
or
partly
carried
on.
3. A building site, a construction, assembly or installation project or a
supervisory
or consultancy
activity
connected therewith
constitutes
a
permanent
establishment
nly if such
site,
project
or activity lasts for
a
period
of
more
than nine
months.
4.
Notwithstanding
the
preceding provisions
of this Article, the term
"permanent
stablishment"
hall be deemed ot to include:
2.
a)
b)
c)
d)
e)
0
a)
b)
c)
d)
The term
"permanent
stablishment"
ncludes
especially:
a
place
of management;
a branch;
an
office;
afactory;
a workshop,
and
a
mine, an
oil or
gas
well,
a
quany
or any
other
place
of exploration
or
extraction
of natural resources.
the
use of
facilities
solely for the
purpose
of
storage,
display
or delivery of
goods
or merchandise
elonging o
the enterprise;
the
maintenance
of a stock of
goods
or
merchandise
belonging to the
enterprise olely for the
purpose
of storage, isplay or delivery;
the maintenance
of a stock of
goods
or merchandisebelonging to the
enterprise olely for the
purpose
ofprocessing
by
anotherenterprise;
the maintenance
of a
f,rxed
place
of businesssolely for the
purpose
of
purchasing goods
or
merchandise
or of collecting information, for the
enterprise;
the maintenance
of a
fixed
place
of businesssolely for the
purpose
of
carrying on, for the enterprise,
any other activity of a
preparatory
or
e)
8/12/2019 DTC agreement between Cyprus and Lithuania
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auxiliary
character;
0
the
maintenance
f a fixed
place
of business
olely for
any combination
of
activities
mentioned
in
sub-paragraphs
a) to e),
provided
that
the overall
activity
of the
fixed
place
of
business esulting
rom
this combination
s of a
preparatory
or auxiliary
character.
5. Notwithstanding
he
provisions
of
paragraphs
1 and 2, where
a
person
-
other
than an
agent of
an independent
status
o
whom paragraph
6 applies
-
is
acting
on
behalf
of an
enterprise
and has, and
habitually exercises,
n a Contracting
State an
authority to conclude contracts n the name of the enterprise, hat
enterprise
shall
be
deemed
o have
a
permanent
establishment
n that State
n respect
of any activities
which
that
person
undertakes
or
the enterprise,
unless he
activities
of such
person
are limited
to
those
mentioned
n
paragraph
4 which,
if
exercised hrough
a fixed
place
of
business,
would
not make
this fixed
place
of business a
permanent
establishment
under
the
provisions
of that
paragraph.
6. An enterprise hall not be deemed o have a permanentestablishmentn a
Contracting
State merely
because t carries
on business n
that State through
a broker,
general
commission
agent
or
any
other agentof an independent
tatus,
provided
hat
such
persons
re acting n
the ordinary course
of their business.However,
when the activities
of
suchan agent
are devotedwholly
or almostwholly on
behalf of that enterprise, e
will not
be considered
an agent of an independent
status
within
the meaning
of this
paragraph.
7. The fact that a company
or is controlled
by a
company
which is
carries
on business n that
other State
otherwise),
hall not of itself constitute
other.
which is a resident
of a ContractingState
controls
a residentof the other
ContractingState,or which
(whether
through
a
permanent
establishment
or
either
company
a
peffnanent
establishment
of the
Article 6
Income from Immovable Property
l . Income
derived by a resident of a
Contracting State from immovable
8/12/2019 DTC agreement between Cyprus and Lithuania
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property
(including
income
from
agriculture
or forestry)
situated
n the
other
Contracting
Statemay
be
taxed n
that
other State.
2.
The term
"immovable
property"
shall have
he
meaning
which
it has
under
the
law
of the
Contracting
State in
which
the
property
in
question
is
situated.
The
term
shall
in any
case include property
accessory
o immovable property,
livestock
and
equipment
used in
agriculture
and
forestry,
rights to
which
the
provisions
of
general
aw
respecting
landed property
apply,
any
option or
similar right
to acquire
immovable
property,
usufruct
of immovable property
and rights
to variable
or fixed
payments
as
consideration or the working of, or the right to work, mineral
deposits, sources
and
other
natural
resources.
Ships
and aircraft
shall not
be regarded
as mmovable property.
3. The
provisions
of
paragraph
1 shall apply
to income
derived rom
the
direct
use,
etting,
or use n
any
other orm of immovable
property.
4.
The
provisions
of
paragraphs
and 3
shall also apply
to the income from
immovable property of an enterpriseandto income from immovable property usedfor the
performance
f independent
ersonal
ervices.
Article 7
BusinessProlits
1.
The
profrts
of an enterprise
of
a
ContractingStateshall be taxable only in
that
Stateunless he enterprisecarries
on business
n the
other Contracting State hrough a
permanent
stablishment ituated herein. f the enterprise arries
on business s aforesaid,
the
profits
of the enterprisemay be taxed in the other State
but only so
much
of them as
is
attributable
o that
permanent
establishment.
2. Subject to the
provisions
of
paragraph
3,
where
an enterprise of a
Contracting
State carries on business n the other Contracting
State
through a
permanent
establishmentsituated therein, there shall in each Contracting State be attributed to that
permanent
stablishmenthe
profits
which
it
might
be expected o make f it were a
distinct
and
separate nterprise ngagedn the sameor similar activitiesunder
he
same
or similar
8/12/2019 DTC agreement between Cyprus and Lithuania
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conditions
and dealing
wholly independently
with the
enterprise
of which it is
a
permanent
establishment.
3.
In determining
the
profits
of a
permanent
establishment,
here
shall be
allowed
as
deductions
expenses
which are incurred
for the purposes
of the
permanent
establishment,
ncluding
executive
and
general
administrative
expenses
so
incurred,
whether
in
the
State
in
which
the
permanent
establishment
s situated
or elsewhere.
The
expenses
o be allowed
as
deductions
by a Contracting
State
shall include
only expenses
that
are deductible
under
he domestic
aws
of
that
State.
4. Insofar
as it
has been
customary in a
Contracting
State to determine
the
profits
to
be attributed
to a
permanent
establishment
on the basis
of an apportionment
of
the
total
profits
of the enterprise
o its various
parts,
nothing
n
paragraph
2 shall
preclude
that
Contracting
State
from
determining
the
profits
to be taxed
by such an apportionment
as
may be customary;
he method
of apportionment
dopted
shall,
however,
be
such hat
the result
shall
be
n
accordance ith
the
principles
contained
n this Article.
5. No
profits
shall be attributed to a
permanent
establishment
by reasonof the
mere
purchase
y
that
permanent
stablishment f
goods
or
merchandise
or the
enterprise.
6. For the
pu{poses
of the
precedingparagraphs,
he
profits
to be
attributed o
the
permanent
establishmentshall
be
determined
by
the
same method
year
by
year
unless
there s
good
and sufficient reason o the contrary.
7. Where
profits
include items of income which
otherArticles
of
this
Convention, hen he
provisions
of those
by the
provisions
of this Article.
are
dealt with
separately n
Articles shall
not
be affected
Article 8
Shipping and
Air Transport
l. Profits of an enterprise f a
Contracting
State rom the
operationof ships
or
aircraft in international raffic
shall be
taxable only in that
State.
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2.
international
a)
b)
c)
For
the
pu{poses
of this
Article
profits
from
the
operation
of ships in
traffic
include
profits
from:
the rental
of
shipson a full
(time
or voyage)
basis,
the
occasional
ental
ofships on a
bare-boat
asis,and
the use, maintenance
or rental
of containers
(including
trailers,
barges
and
related
equipment
used for
the transport
of
containers), f
these
activities
pertain
to the
operation
of ships
or aircraft in
international
traffic.
3. The
provisions
of this Article
shall also
apply to
profits
from
the
participation n a pool, a oint business r an ntemational
operating
agency.
Article 9
AssociatedEnterprises
i.
Where
a) an enterpriseof a Contracting Stateparticipatesdirectly or indirectly in the
management,
control
or
capital
of
an
enterprise of the other
Contracting
State,or
b) the
same
persons participate
directly
or
indirectly
in the
management,
control or capital of an enterpriseof a Contracting
State
and an
enterpriseof
the other ContractingState,
and in either caseconditions are made
or
imposed
between he
two enterprises
n
their commercial
or financial relations which differ from those which
would
be
made
between ndependent nterprises,
hen any
profits
which would,
but
for those
conditions,
have accrued
o one of the enterprises, ut, by
reason
of those conditions,
have not
so
accrued,may be ncluded n the
profits
of that enterprise nd axed accordingly.
2. Where a Contracting State ncludes
n the
profits
of an
enterprise
of that
State and taxes accordingly
-
profits
on which an enterprise
of
the other Contracting State
has been charged to tax in that other
State
and the
profits
so
included are
profits
which
would have accrued to the enterprise of the first-mentioned State if the conditions made
between the two enterprises
had
been
those which would have
been
made
between
independententerprises, hen that other Stateshall
make
an appropriateadjustment o the
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10/26
amount
of
the tax
charged
therein
on those
profits,
where
that
other
State considers
he
adjustment
ustified.
In determining
such adjustment,
due
regard
shall
be had
to
the other
provisions
of
this
Convention
and
he competent
uthorities
of
the Contracting
States
hall
ifnecessary
consult
each
other.
Article
10
Dividends
1. Dividendspaid by a companywhich is a resident
of a
Contracting
State o a
resident
of
the other
contracting
Statemay
be taxed in
that
other State.
2.
However,
such dividends
may
also be
taxed in
the Contracting
State of
which
the
company
paying
the dividends
s a resident
and
according
o the laws
of that
State,
but if
the beneficial
owner
of the
dividends s a resident
of the
other
Contractins
State,
he tax
so charged
shall not exceed:
a) 0 per cent of the grossamountof the dividends f the beneficialowner s a
company
other
han
a
partnership)
which holds
directly
at least 10
per
cent
of the capital
of the company
paying
he
dividends;
b)
5
per
cent of
the
gross
amount
of
the
dividends n all
other cases.
This
paragraph
shall not affect
the taxation of the
company in respect
of the
profits
out
of
which
the dividends
are
paid.
3. The
term
"dividends"
as
used n this Article means
ncome from
shares r
other rights,
not being debt-claims,
participating
n
profits,
as well as income from
other
corporate
rights which is
subjected o the
same
axation
treatment as income from
shares
by
the
laws
of
the
Stateof which the company making the
distribution is a
resident.
4.
The
provisions
of
paragraphs
and2 shall not
apply if the beneficialowner
of the
dividends,
being
a resident
of a ContractingState,carries
on business n the
other
Contracting
State of
which
the company
paying
the dividends
is a resident,
through a
permanent establishment situated therein, or performs in that other State independent
personal
services rom a fixed base
situated herein,
and
the holding in respectof which
the
dividends
are
paid
is effectively
connectedwith such
permanent
stablishment r fixed
10
8/12/2019 DTC agreement between Cyprus and Lithuania
11/26
base.
n such
case
he
provisions
of Article
7
or
Article
14,
as he case
may be,
shall apply.
5.
Where
a company
which is
a resident
of a Contracting
State derives
profits
or income
from
the
other Contracting
State, hat other
Statemay not
impose any
tax
on the
dividends
paid
by the company,
except nsofar
as such
dividends
are
paid
to a
resident
of
that other
State
or insofar
as
the
holding in respect
of which
the dividends
are
paid
is
effectively
connected
with a
permanent
establishment
or a
fixed base
situated n that
other
State, nor
subject
the company's
undistributed
profits
to
a tax on the
company's
undistributed profits,
even if
the dividends
paid
or the undistributed
profits
consist
wholly
or partly of profits
or
income
arising in
such other State.
Article 11
Interest
1. Interest arising in a
ContractingState
and
paid
to a resident of the other
ContractingStateshall be taxableonly in that other State.
2. The term
"interest"
as
used n this Article means ncome from debt-claims
of every kind, whether
or
not secured
by
mortgage, and in
particular,
income
from
government
securities
and income from bonds or
debentures, ncluding
premiums
and
prizes
attaching o such securities, onds or debentures.
enalty charges
or late
payment
shallnot
be
regarded s nterest or the
purpose
of this Article.
3. The
provisions
of
paragraph
1 shall
not apply if the beneficial owner of
the
interest,
being a
resident of a Contracting
State, carries on business
in the other
Contracting
State
n which the
interest alises, through
a
permanent
establishmentsituated
therein, or
performs
n that other State
ndependent
ersonal
services
rom a fixed base
situated herein, and
the debt-claim n respectof
which the interest
s
paid
is effectively
connectedwith such
permanent
establishment r
fixed base. n such case
he
provisions
of
Article 7
or
Article 14, as he case
may be, shall apply.
4. Interestshall be
deemed o arise
n a ContractingState
when the
payer
s a
resident of that State.
Where,however, he
personpaying
the
interest,
whether he s a
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resident
of a Contracting Stateor
not, has
n a Contracting State a
peffnanent
establishment
or a fixed base n connection with which the indebtedness
n
which
the
interest s
paid
was
incurred, and
such
interest is
bome by such
permanent
establishment
or
fixed
base, hen
such nterest
shall be deemed o arise n the State
n
which the
permanent
establishmentor
fixed
base s situated.
5. Where,
by
reason
of
a
special
relationship
between the
payer
and the
benefrcial
owner or between both of them and some other
person,
the amount
of the
interest,
having regard to the
debt-claim for
which it
is
paid,
exceeds he amount which
would havebeenagreedupon by the payer and the beneficial owner in the absence
of such
relationship,
he
provisions
of
this Article
shall
apply only
to the
last-mentioned
mount. n
such case,
he excess
part
of the
payments
shall remain taxable according o the laws
of
each
ContractingState,due regard
being
had o the other
provisions
of this
Convention.
Article 12
Royalties
1. Royalties arising n a ContractingStateand
paid
to a residentof the other
Contracting Statemay be taxed in that other State.
2. However,
such
oyaltiesmay
also
be taxed n the
Contracting
State n which
they arise and according to the laws of that State, but if the beneficial owner of the
royalties s
a
resident
of the other ContractingState,
he tax
so charged
shall not
exceed
5
per
centof the
gross
amount
of
the royalties.
3. The term
"royalties"
as used n this Article means
payments
of
any kind
received
as a consideration or the use of, or the
right
to use, any copyright of literary,
artistic or
scientific
work including cinematograph f,rlms and frlms or tapes and other
means
of image or sound reproduction or radio or television broad-casting, ny
patent,
trademark,
designor model,
plan,
secret ormula or
process,
r for information concerning
industrial,commercialor scientificexperience.
4. The
provisions
of
paragraphs
and2 shall not apply if the beneficial
owner
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of the
royalties,
being a resident
of a Contracting
State,carries
on business n
the other
Contracting
State n which
the
royalties
arise, hrough
a
permanent
establishment
situated
therein,
or
performs
in that
other
State
independentpersonal
services from
a fixed
base
situated
therein,
and the right
or
property
in
respect
of which
the royalties
are
paid
is
effectively
connectedwith
such
permanent
establishment
r fixed
base.
n
such case
he
provisions
of Article
7 or Article 14,
as
he
casemay be,
shall apply.
5. Royalties
shall be deemed
o arise n a Contracting
Statewhen the
payer
s
a
resident
of that
State. Where, however,
he
person paying
the
royalties,
whether he
is a
residentof a
Contracting Stateor not, has
n a Contracting State
a
perrnanent
establishment
or
a fixed
base n connection
with which the liability to
pay
the royalties was incurred,
and
such oyaltiesare
bome by such
permanent
stablishment r fixed
base,
hen
such oyalties
shall
be deemed o arise in
the State n which the
permanent
establishmentor frxed
base
s
situated.
6. Where, by reason of a
special
relationship
between the
payer
and the
beneficial owner or between both of them and some other person, the amount of the
royalties,
having regard o the use, right or information for which they are
paid,
exceeds
the amount
which
would
have been agreedupon by the
payer
and the beneficial owner
n
the absence
f such relationship, he
provisions
of
this
Article shall apply only to the last-
mentioned
amount. In such case, the excess
part
of the
payments
shall
remain taxable
according
to the
laws
of each Contracting
State, due regard being
had
to the other
provisions
of this Convention.
Article
13
Alienation of
property
1. Income or
gains
derived
by
a resident of a Contracting
State from the
alienation of immovable
property
referred to in Article 6 and situated
in the other
Contracting State
may be taxed in that other State.
2.
Gains
rom the alienationof
movable
property
orming
part
of the business
property
of a
permanent
establishment
which an enterpriseof
a
Contracting
Statehas
n
the
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other
Contracting
State
or
of movable property
pertaining
o
a fixed
base available
o a
resident
of
a Contracting
State n
the
other
Contracting
State
or the
purpose
of
performing
independent
personal
services,
including
such
gains
from
the
alienation
of
such
a
permanent
establishment
alone
or with
the
whole
enterprise)
or
of such
fixed
base,
may
be
taxed
n
that
other
State.
3.
Gains
derived
by an
enterprise
f a Contracting
State
from the
alienation
of
ships
or aircraft
operated
in international
traffic
or movable property
pertaining
to
the
operation
of
such
ships or
akcraft,
shall
be
taxable
only in
that
State.
4.
Gains from
the
alienation
of any
property
other than
that referred
to
in
paragraphs
,
2 and
3, shall
be
taxable
only in
the
Contracting
State
of which
the alienator
is
a resident.
Article 14
IndependentPersonalServices
1.
Income
derived
by an individual
who
is a
resident
of a
Contracting
State n
respect
of
professional
services
or other
activities
of an independent
character
shall be
taxable
only in
that
Stateunless
he has
a fixed
base egularly
available
o him
in
the other
Contracting
State or
the
purpose
of
performing
his activities.
f he has
such a fixed
base,
the income
may
be taxed in
the other
State
but only
so much
of it as is attributable
to that
fixed
base.For
this
pufpose,
where
an individual
who
is
a resident
of a
Contracting
State
stays
n the
other
Contracting
State
or a
period
or
periods
exceeding
n
the aggregate
83
days
n
any twelve
month
period
commencing
or ending
n
the fiscal
year
concerned,
e
shall
be
deemed
o have
a fixed
base egularly
available
o him in
that other
Stateand
the
income
hat is
derived rom
his activities
eferred
o above
hat are
performed
n
that
other
State
shall
be attributable
o that fixed
base.
2.
The
term
"professional ervices" ncludes
especially
ndependent
cientific,
literary,artistic, educationalor teachingactivitiesas well as the independent ctivities
of
physicians,
awyers,
engineers,
rchitects,
entists
and accountants.
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Article 15
Income
from
Employment
1.
Subject
to
the
provisions
of Articles
16,
18
and
19,
salaries,
wages
and
other
similar
remuneration
derived
by a resident
of a
Contracting
State in
respect
of an
employment
shall
be taxable
only in
that
Stateunless
he
employment
s exercised
n
the
other
Contracting
State. f
the
employment
s
so exercised,
uch emuneration
s s
derived
therefrom
may
be taxed
n that
other
State.
2.
resident
of
Contracting
Notwithstanding he provisionsof paragraph
1, remuneration
derived
by a
a Contracting
State in
respect
of an employment
exercised
n
the other
Stateshall
be taxable
only in
the first-mentioned
State f:
the
recipient
is
present
in the
other
State for
a
period
or
periods
not
exceeding
in
the
aggregate
183 days
in
arry
twelve month period
commencing
or
ending
n
the fiscal
year
concemed,
and
the remuneration
s
paid
by, or on
behalf
of, an
employer who
is
not a
residentofthe otherState,and
the
remuneration
s
not
bome by a
permanent
establishment
or a fixed
base
which
the employer
has
n the
other State.
a)
3.
Notwithstanding
the
preceding
provisions
of this
Article, remuneration
derived
n respect
of an employment
exercised
aboard
a
ship operated n
international
traffic
by an
enterprise
of a
Contracting
Stateshall be taxable
only
in
that State.
4.
Notwithstanding
the
preceding provisions
of this Article,
remuneration
derived n
respect
of an employment
exercised
aboard
an aircraft
operated n international
traffic
by
an enterprise
of a
Contracting
State
may
be taxed n
that State.
Article
16
Directors'Fees
Directors'
ees and
other
similar
payments
derived
by a resident
of a
Contracting
State n
his capacity
as a member
of the
boardof directors
or any
other similar
organ
of a
b)
c)
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company
which is
a resident
of the
other Contracting
State
may
be taxed in
that other
State.
Article
17
Artistes
and Sportsmen
1.
Notwithstanding
he
provisions
of Articles
14 and 15,
ncome
derived
by a
resident
of a
Contracting
State as an entertainer,
such as
a theatre,
motion
picture,
radio
or
televisionartiste,or a musician,or as a sportsman, rom his personal
activities
as
such
exercised
n the
other Contracting
State,may
be taxed n that
other State.
2. Where
income in
respect
of
personal
activities
exercisedby an
entertainer
or a
sportsman n
his capacity as
such accruesnot to
the entertainer
or sportsman
himself
but
to another
person,
that income
may, notwithstanding
the
provisions
of Articles
7, 14
and
15, be taxed
in the
Contracting State n which
the activities
of
the
entertaineror
sportsman re exercised.
3. The
provisions
of
paragraphs
1 and 2
shall not apply to income
derived
from
activities
exercised n a Contracting
Stateby an entertainer
or a sportsman f the visit
to
that State is wholly
or mainly supported
by
public
funds of
one
or
both of the
Contracting
States,
political
subdivisionsor local authorities
hereof.
In
such case, he
income
shall
be taxable only in the
Contracting Stateof which the entertainer
or sportsman
is a resident.
Article 18
Pensions
1.
Subject o the
provisions
of
paragraph2
of
Article
19,
pensions
and other
similar remuneration
paid
to
a resident
of a Contracting State n consideration
of
past
employment hall be taxableonly in thatState.
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2.
Notwithstanding
he
provisions
of
paragraph
1, and
subject
o the provisions
of
paragraph
of
Anicle
19,
pensions
aid
and
other
payments
made,
whetherperiodically
or in
a
lump-sum,
under
the
social
security
egislation
of a
Contracting
State
shall
be
taxable
n
that
State.
Article
19
Government
Service
a) Salaries, wages and other similar remuneration. other
than
a
pension,
paid
by a
contracting
state,
a
political
subdivision
or
a local
authority
thereof
to an
individual
in
respect
of services
rendered
to
that
State,
political
subdivision
or authority
shall
be taxable
only
in
that
State.
However,
such
salaries,
wages and
other
similar
remuneration
shall
be
taxable
only
in the
other
Contracting
State
f
the services
are
rendered
n
that
Stateand
the individual
is a resident
of that
Statewho:
(i) is a nationalof that State;or
(ii)
did
not
become a
resident
of that
State
solely
for the
purpose
of
rendering
he
services.
a)
Any
pension
paid
by, or out of funds
created
y, a Contracting
State,
a
political
subdivision
or
a local authority
hereof
o
an individual
in respect
of services
endered
o
that
State,
political
subdivision
or authority
shall
be
taxable
only in that
State.
However,
such
pension
shall
be taxable
only in
the
other Contracting
State
if the individual
s
a resident
of, and
a national
of, that
State.
3.
The
provisions
f Art icles 15,16,77,
and
18
shall apply o
salaries, ages
and
other
similar
remuneration,
and to
pensions,
n
respect
of services
rendered
n
connection
with
a business
arried
on
by a Contracting
State,
a
political
subdivision
or
a
local
authority
thereof.
l .
b)
2.
b)
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Article
20
Students
Payments
which
a
student,
an apprentice
or
a trainee
who
is or was
immediately
before
visiting
a
Contracting
State
a resident
of the
other
Contracting
State
and
who
is
present
n
the
first-mentioned
State
solely
for
the
purpose
of his
education
or
training
receives
or
the
purpose
of
his maintenance,
education
or training
shall not
be
taxed
in
that
state, provided
that
such
payments
arise
rom
sources
outside
hat
State.
Article
21
Offshore
activities
1.
The provisions
of
this Article
shall
apply
notwithstanding
any
other
provision
of this
Convention.
2. A personwho is a residentof a ContractingStateand carrieson activities
offshore
n
the
other Contracting
State n connection
with
the exploration
or exploitation
of
the
seabed
or subsoil
or their
natural
resources
situated
n that
other
State shall,
subject o
paragraphs
and 4
of this
Article,
be deemed n
relation
o
those activities
o
be carrying
on business
n
that
other
State through
a
permanent
establishment
or
fixed
base
situated
therein.
3.
The
provisions
of
paragraph
2 shall
not apply
where
the
activities
are
carried
on
for a
period
or
periods
not exceeding
30 days in
the
aggregate n
any
twelve
months
period
commencing
or ending
in the
fiscal
year
concerned.
However,
for
the
purposes
f this
paragraph:
a)
activities
carried
on
by a
person
who
is associated
ith
another
person
shall
be regarded
as
carried
on by the
other
person
f the
activities in
question
are
substantially
he same
as hose
carried
on by the
f,rrst-mentioned
erson;
a
person
shall be deemed
o
be associated
with
another
person
f one is
controlleddirectly or indirectly by the other,or both are controlled
directly
or indirectly
by a
third
person
or third
persons.
b)
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4.
Profits
derived
by
a
person
who is
a resident
of a
Contracting
State rom
the
transportation
f supplies
or
personnel
o
a location,
or
between
ocations,
where
activities
in
connection
with
the exploration
or
exploitation
of
the
seabed
or subsoil
or their
natural
resources
are
being carried
on in a
Contracting
State,
or from
the
operation
of tugboats
and
other
vessels
uxiliary
to
suchactivities,
shall be taxable
only in
that State.
a)
Subject to
sub-paragraph
b of this
paragraph,
salaries,
wages
and
similar remuneration
erived
by a resident
of a
Contracting
State
n respect
of an employment
connected
with
the
exploration
or
exploitation
of the
seabedor subsoil or their natural resources
situated
n the
other
contracting
State may, to
the extent
that
the duties
are
performed
offshore
in that
other
State,
be taxed
in that
other
State. However,
such remuneration
shall
be
taxable
only in
the first-mentioned
State if
the employment
is
carried
on
offshore for
an employer
who is
not a resident
of the other
State
and
provided
that
the employment
s
carried
on for a
period
or
periods
not
exceeding
in the
aggregate
30 days in
any
twelve-month
period
commencingor ending n the fiscalyearconcerned.
Salaries,
wages
and similar
remuneration
derived
by a resident
of a
Contracting
State in respect
of an employment
exercised
aboard
a ship or
aircraft engaged
n the transportation
of
supplies or
personnel
o or from
a
location,
or
between locations, where
activities
connected with
the
explorationor exploitation
of the
seabed r subsoil
or
their natural
esources
are being carried
on in the
other Contracting
State, or
in
respect
of
an
employment
exercised board ugboats
or other vessels
operated uxiliary
o
such activit ies, may
be taxed in the State
of which the
person
carrying on
suchactivities
s a resident.
Gainsderivedby a resident
of a Contracting
State
rom
the alienation
of:
Exploration
or exploitation ights; or
Property
situated
n
the other Contracting
State and used n connection
with
the exploration
or exploitation of the
seabed
or
subsoil or
their natural
resourcessituated n that other State;or
Sharesderiving their value
or
the
greater
part
of their value
directly or
indirectly from
such rights or such
property
or from such rights and
such
5.
b)
6 .
a)
b)
c)
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property
taken
together,
may
be
taxed
in
that
other
State.
In
this paragraph
"exploration
or
exploitation
rights"
means
rights
to
assets
o
be
produced
by
the
exploration
or
exploitation
of
the
seabed
or subsoil
or
their
natural
resources
n
the
other
Contracting
State,
ncluding
rights
to
interests
n
or to
the
benefit
of
such
assets.
Article
22
Other Income
1.
Items
of
income
of a
resident
of a
Contracting
State,
wherever
arising,
not
dealt
with
in
the
foregoing
Articles
of
this
Convention
shall
be
taxable
only in
that
State.
2.
The
provisions
of
paragraph
1
shall not
apply
to income,
other
than
income
from
immovable
property
as
defined
n
paragraph2
of
Article
6, if
the recipient
of
such
income,
being a resident of a Contracting State, carries on business in the other
Contracting
State
through
a
permanent
establishment
situated
herein,
or
performs
in
that
other
State ndependent
personal
services
rom
a fixed
base
situated
herein,
and
the
right
or
property
in respect
of which
the income
is
paid
is effectively
connected
with
such
permanent
stablishment
r fixed
base.
n
such
case he
provisions
of
Article
7
or Article
14,
as
he case
may
be,
shall
apply.
Article
23
Elimination
of Double
Taxation
1.
In
Cyprus
double
axation
shall
be eliminated
as ollows:
Subject
o
the
provisions
of Cyprus
Tax Law
regarding
credit
for foreign
tax,
there
shall
be allowed
as a
credit
against
Cyprus
ax
payable
n respect
of any item
of
income
derived
from
Lithuania
the Lithuanian
tax
paid
under
the
laws
of Lithuania
and in
accordance ith this Convention.The creditshall not, however,exceed hatpart
of Cyprus
tax,
as computed
before
he credit
s
given,
which is
appropriate
o
such tems
of income.
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2.
In
Lithuania
double
axation
shall
be eliminated
as ollows:
Where
a resident
of
Lithuania
derives
income
which,
in
accordance
with
this
Convention,
fidY
be
taxed
n
Cyprus,
unless
a
more
favourable
reatment
s
provided
n its
domestic
law,
Lithuania
shall
allow
as
a deduction
from
the
tax
on
the income
of
that
resident,
an
amount
equal
to
the income
tax
paid
thereon
n
cyprus.
Such
deduction
shall
not,
however,
exceed
hat part
of
the income
ax
in
Lithuania,
as
computed
before
the
deduction
s
given,
which
is
attributable
to
the
income
which
may
be taxed
n
Cyprus.
Article
24
Non-Discrimination
1.
Nationals
of
a
Contracting
State
shall not
be subjected
in
the
other
Contracting
State
to any
taxation
or any requirement
connected
herewith,
which
is
other
or
more
burdensome
han
the taxation
and
connected
equirements
o
which
nationals
of
that other State n the same circumstances,n particular with respect o residence,are or
may
be
subjected.
This provision
shall,
notwithstanding
he
provisions
of Article
I, also
apply
to
persons
who
are not
residents
of one
or both
of the
Contractins
States.
2.
The
taxation
on
a
pefinanent
establishment
which
an enterprise
of a
Contracting
State has in
the
other
Contracting
State
shall not
be less
favourably
levied in
that
other
State
than the
taxation
levied
on
enterprises
of that
other
State carrying
on the
same
activities.
This
provision
shall not
be construed
as obliging
a Contracting
State o
grant
to residents
of the
other
Contracting
State any
personal
allowances,
reliefs
and
reductions
or taxation
purposes
on account
of civil
status
or family
responsibilities
which
it
grants
o its
own residents.
3. Except
where
the
provisions
of
paragraph
1
of Article
9,
parcgraph
5 of
Article
11,
or
paragraph
6 of Article
12,
apply, nterest,
oyalties
and
other disbursements
paid
by an
enterprise
of a
Contracting
State to
a
resident
of
the other
Contracting
State
shall, for the purposeof determining he taxableprofits of such enterprise,
e deductible
under
the
same conditions
as if they
had
been
paid
to a resident
of the first-mentioned
State.
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4.
Enterprises
of a Contracting
State,
he capital
of which
is wholly
or
partly
owned
or
controlled,
directly
or indirectly,
by
one
or more
residents
of
the
other
Contracting
State,
shall
not
be subjected
n the first-mentioned
State
o any
taxation
or any
requirement
connected
herewith
which
is
other or more
burdensome
han
the
taxation
and
connected
equirements
o
which
other
similar enterprises
of
the first-mentioned
State are
or may
be
subjected.
5.
The
provisions
of this
Article
shall,
notwithstanding
the
provisions
of
Article
2, apply
o taxes
of
every kind
and description.
Article 25
Mutual
Agreement
Procedure
1.
Where
a
person
considers
hat the actions
of
one or both of the
Contracting
States
esult
or will result
for him
in taxation
not in accordance
ith
the
provisions
of
this
Convention,he may, irrespectiveof the remediesprovidedby the domestic aw of those
States,
present
his
case o the
competentauthority
of the
Contracting State of which
he is a
resident
or, if his case
comes under
paragraph
of Article
24, to that
of
the
Contracting
State
of
which
he is a national.
The
casemust be
presented
within three
years
rom the first
notification
of
the
action resulting
n taxationnot in accordance
with
the
provisions
of the
Convention.
2.
The competent
authority
shall
endeavour,
f the
objection
appears
o itto be
justified
and f it is not itself
able o arr ive at a
satisfactory olution, o resolve
he caseby
mutual agreement
with the competent
authority of the other
Contracting State,with a view
to
the avoidance
of
taxation
which is not in accordance
with the Convention.
Any
agreement
eached
shall be implemented notwithstanding
any time limits in
the domestic
law
of the Contractins
States.
3. The competent authorities
of the Contracting States
shall
endeavour
resolveby mutual agreementany difficulties or doubtsarising as to the interpretation
application
of the
Convention. They may also consult together
for the elimination
double
axation n
cases
ot
provided
or in the
Convention.
to
or
of
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4. The competent authorities of the Contracting Statesmay communicatewith
each
other directly, ncluding through a
oint
commission
consisting
of
themselves
r
their
representatives,
or the
purpose
of reaching an agreement n the sense of the
preceding
paragraphs.
Article 26
Exchange of Information
1. The competent authorities of the Contracting States shall exchangesuch
information
as s forseeably elevant or carrying out the
provisions
of this Conventionor
to
the administration or enforcementof the domestic
aws
concerning taxes of every kind
and
description mposedon behalf of a ContractingStateor a
political
subdivisionor
local
authority thereof, insofar as the taxation thereunder
s not contrary to the Convention. The
exchange
f information
s
not
restricted
y
Articles I and2.
2. Any information receivedunderparagraph1 by a Contracting State shall be
treated as secret n the same manner as
information obtained under the
domestic laws of
that State and shall be disclosed only
to
persons
or
authorities
(including
courts
and
administrative odies)concerned
with the assessment
r collection of,
the enforcement r
prosecution
n respectof, or the determination
of appeals
n relation to the
taxes referred o
in
paragraph
1, or the
oversight of the
above. Such
persons
or authorities shall
use the
information only for
such
purposes.They may disclose
he information
in
public
court
proceedings
r in
judicial
decisions.
3.
In no case shall
the
provisions
of
paragraphs
and
2 be construed
as to
imposeon a ContractingState
he obligation:
a) to carry out
administrative
measures
for the supply
of
information at
variance with
the laws and
administrative
practice
of
that or of the
other
Contracting
State;
to supply
information
which
is not obtainable
under
the laws or
in the
normal
courseof the
administration
of that or of the other Contracting State;
to
supply
information
which would
discloseany trade,
business,
ndustrial,
commercial or
professional
secret or
trade
process,
or information,
the
b)
c)
^ a
z )
8/12/2019 DTC agreement between Cyprus and Lithuania
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disclosure f which would
be contrary o
public
policy (ordrepublic).
4.
If information is requested
by a Contracting
State in accordance
with this
Article, the
other Contracting
State shall use its
information gathering
measures o
obtain
the requested
nformation,
even
though
that other Statemay not need
such
information
for
its
own tax
purposes.
The obligation contained n
the
preceding
sentence
s subject
o the
limitations
of
paragraph
3 but
in
no case shall such limitations
be construed o
permit
a
Contracting
State to decline to supply information
solely because t has no
domestic
interest n
such nformation.
5. In no case
shall the
provisions
of
paragraph
3 be construed o
permit
a
Contracting State to decline to supply information solely because he information is held
by
a
bank, other inancial nstitution,
nominee
or
person
acting n an agencyor a fiduciary
capacity
or because
t relates o ownership nterests
n
a
person.
Article 27
Members of Diplomatic
Missions and Consular
Posts
Nothing in this Convention
shall
affect the
fiscal
privileges
of members of
diplomatic
missionsor consular
posts
under he
general
ules of
international
aw or under
the
provisions
of
specialagreements.
Article
28
Entry
into
Force
1. The Governments
of
the Contracting
States
shall
notify each
other
when the
constitutional
requirements
or the entry
into
force of this
Convention
have been
complied
with.
2.
The Convention
shall
enter
into
force on the
date of
the later of
the
notifications
referred
to in
paragraph
1
and its provisions shall have effect in both
Contracting States:
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in respect
of taxeswithheld
at source, n income
derived
on or after he
first
day
of January in
the calendar
year
next
following the
year
in which
the
Convention
enters nto force;
in respect
of other taxes on income, for
taxes chargeable
or any fiscal
year
beginning on or
after the first day of
January in the calendar
year
next
following the
year
in which the Convention
enters nto force.
Article 29
Termination
This
Convention shall remain in force until terminated by a Contracting
State.
Either
Contracting State may terminate the
Convention,
through diplomatic charurels,by
giving
written
notice of termination at
least
six
months
before
the end of any calendar
year.
In
suchevent, he
Convention
shall cease o
haveeffect n
both Contracting
States:
a) in respectof taxeswithheld at source,
n income derivedon or after he first
day of January in the calendaryear next following the year in which the
noticehasbeen
given;
b)
in respect of other
taxes on income,
for taxes chargeable
or any fiscal
year
beginning
on or after
the first day
of January in
the calendar
year
next
following the
year
in which the notice
has been
given.
In witness
whereof, the undersigned,
duly authorised
thereto,
have signed
this
Convention.
a)
b)
Done n duplicate
&ila *.b9lt{.f
this .*4...
day of
/Uttg
20fi in
tne
Lithuanian, Greek
and
English
languages,
ll three
texts being equally
authentic.
n the
caseof
divergence f
interpretation
he
English ext
shall
prevail.
For the Government
of the
Republic of Lithuania
\
For the Governmerut
of the
Renublis/of
Cvprus
7/ry8
Harris
Geirrgiades
Minister
of Finance
/-/l'----------
Rimantas SadZius
Minister of
Finance
25
8/12/2019 DTC agreement between Cyprus and Lithuania
26/26
PROTOCOL
At the
signing
of the
Convention
between
the Govemment
of the
Republic
of
Lithuania
and the
Government
of the
Republic
of Cyprus for
the Avoidance
of Double
Taxation
and
he Prevention
of
Fiscal
Evasion
with respect
o Taxes
on Income,
both
sides
have
agreed hat
this Protocol
shall form an
integral
part
of the Convention:
With
reference
o Article
6 "Income from immovable property":
Where
the ownership
of
sharesor other corporate rights
in a
company entitles
the
owner
of such sharesor corporate
rights to the
enjoyment of immovable
property
held
by
the company, he income from the direct use, etting,
or use n any
other
form
of such right
to the enjoyment
may be taxed in the
Contracting State
n
which the immovable
property
s
situated.
In witnesswhereof he undersigned, eing duly authorised hereto,
have
signed his
Protocol.
Done n duplicatat u.Q.&mftni,
..J./.... ayof .fuf.g
2a/3,n the
/ /
Lithuanian, Greek
and English
languages,all three
texts being equally
authentic.
In the
caseof divergence f
interpretation
he English
ext shall
prevail.
For
the Government
of the
Republic of
Lithuania
For the Government
of
the
Republic of Cyprus
des
imantas SadZius
Minister of
Finance
Min
r of Finance