dtc agreement between cyprus and lithuania

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.


2/26

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)


3/26

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)


4/26

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)


5/26

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)


6/26

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


7/26

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


8/26

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.


9/26

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


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


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

11


12/26

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

I2


13/26

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

13


14/26

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.

t 4


15/26

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)

t 5


16/26

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.

t 6


17/26

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)

t 7


18/26

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)

18


19/26

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)

19


20/26

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.

20


21/26

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.

21


22/26

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

22


23/26

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 )


24/26

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:

24


25/26

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


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

dtc agreement between cyprus and lithuania

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