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Note: This Treaty may be impacted by the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (MLI). MLI impact on Tax Treaties is available with the Orbitax International Tax Research & Compliance Expert.

ARTICLE 22

Elimination of Double Taxation

(1) In the case of Syria, double taxation shall be avoided as follows:

  • (a) Where a resident of Syria derives income which, in accordance with the provisions of this Agreement, may be taxed in Cyprus, Syria shall, subject to the provisions of sub-paragraph (b) of this paragraph, exempt such income from tax.
  • (b) Where a resident of Syria derives income which, in accordance with the provisions of Articles 10, 11 and 12 of this Agreement may be taxed in Cyprus, Syria shall allow as a deduction from the tax on the income of that resident an amount equal to the tax payable in Cyprus. Such deduction shall not, however, exceed that part of the tax, as computed before the deduction is given, which is appropriate to such income derived in Cyprus.

(2) In the case of Cyprus, double taxation shall be avoided as follows:

  • Subject to the provisions of the law of Cyprus regarding the allowance as a credit against Cyprus tax of tax payable in a territory outside Cyprus, Syrian tax payable under the laws of Syria, whether directly or by deduction in respect of profits, income or gains from sources within Syria shall be allowed as a credit against any Cyprus tax payable in respect of that profit, income or gains. Such deduction shall not, however, exceed that part of the tax, as computed before the deduction is given, which is appropriate to such income derived in Syria.

(3) The tax payable in a Contracting State mentioned in sub-paragraph (b) of paragraph (1) and paragraph (2) of this Article shall be deemed to include the tax which would have been payable but for the legal provisions concerning tax reduction, exemption or other tax incentives granted under the laws of the Contracting State. For the purpose of paragraph (2) of Article 10 the amount of tax shall be deemed to be 15 per cent of the gross amount of dividend, for the purpose of paragraph (2) of Article 11, the amount of tax shall be deemed to be 10 per cent of the gross amount of interest and for the purpose of paragraph (2) of Article 12, the amount of tax shall be deemed to be 15 per cent of the gross amount of royalties.

(4) When in accordance with any provision of this Agreement income derived by a resident of a Contracting State is exempt from tax in that State, such State may nevertheless, in calculating the amount of tax on the remaining income of such resident, take into account the exempted income.

(5) Where under the provisions of this Agreement income is relieved from tax in one of the Contracting States and, under the law in force in the other Contracting State, a person, in respect of the said income, is subject to tax by reference to the amount thereof which is remitted to or received in that other Contracting State and not by reference to the full amount thereof then the relief to be allowed under this Agreement in the first-mentioned Contracting State shall apply only to so much of the income as is remitted to or received in the other Contracting State.