The tax treaty signed between Cyprus and Iran on 4 August 2015 entered into force on 5 March 2017 and its provisions will come into effect as from 1 January 2018. The tax treaty is based on the OECD Model Convention and its main provisions are briefly outlined below: Dividends: If the recipient is the beneficial owner of the dividends the withholding tax shall not exceed: a) 5% of the gross dividend amount if the beneficial owner is a company which holds directly at least 25%