On the 22nd of March 2012, the Minister of Finance Kikis Kazamias and the Ambassador of Poland in Cyprus Pawl Dabrowolski signed a protocol amending the agreement between Cyprus and Poland for the Avoidance of Double Taxation with respect to taxes on income and capital.

The agreement maintains the existing regime for around 9000 Polish Nationals who work on Cypriot ships and who are not taxed. The Protocol reduces the withholding rates in this respect to dividends from 10% to 5% or 0% and interest from 10% to 5%. Withholding tax on royalties remained unchanged at 5%. Also the Directors fees earned by an individual will now be taxable only in the country of his residence and finally the Tax sparing clause will no longer be given.

More information will be given as soon as the agreement will be published at the Official Gazetta.