Cyprus and UK sign updated Convention on the Elimination of Double Taxation
The Republic of Cyprus and the Government of the United Kingdom of Great Britain and Northern Ireland, signed on March 22, in Nicosia, an updated Convention on the Elimination of Double Taxation with respect to Taxes on Income and on Capital Earnings and the Prevention of Tax Evasion of tax avoidance. The Agreement on behalf of the Republic of Cyprus was signed by the Minister of Finance of the Republic of Cyprus, Haris Georgiades, and on behalf of the United Kingdom the British High Commissioner in Cyprus, Matthew Kidd.
The new text is to update the existing Convention signed on 20/6/1974 and entered into force on 18/3/1975. The new agreement agreed between the two states will contribute to the further development of trade and economic relations between the Republic of Cyprus and the United Kingdom of Great Britain and Northern Ireland.
The new Convention is based on the OECD Model Convention on the Avoidance of Double Taxation on Income and on Capital and contains all the minimum standards of Tax and Fund Eradication Activities (BEPS) on bilateral conventions, Action 6 (Treaty Abuse) and Action 14 (Making Dispute Resolution Mechanisms More Effective). There is also provision for the exchange of banking and other information in accordance with the relevant Article of this Model.
The updating, preservation and expansion of the existing Network of Elimination of Double Taxation, which are of utmost economic and political importance, aims to further strengthen and attract foreign investment and to promote Cyprus as an international business center.