Cyprus – UK sign new Convention for double taxation elimination

Cyprus – UK sign new Convention for double taxation elimination

On Thursday, the Republic of Cyprus and the United Kingdom signed a new Convention for the elimination of double taxation “with respect to taxes on income and on capital gains and the prevention of tax evasion and avoidance”, CNA reports.

The treaty was signed in the Cypriot capital city, Nicosia. Minister of Finance Harris Georgiades represented Cyprus and signed on behalf of his country whereas and the United Kingdom was represented by the British High Commissioner to Cyprus Matthew Kidd.

The existing convention, that was signed on 20/6/1974 and entered into force on 18/3/1975 will be updated by this new treaty.

Cyprus’ Finance minister said that, “It is a step of significance, which further opens the way for the expansion of the economic, the commercial, the financial ties between our governments (…) This is a relationship that we want to sustain regardless of the UK’s forthcoming exit from the EU. Despite the exit, we believe that our relations in the economic and commercial field must remain strong and the updated treaty is a very useful tool in that direction.”

Matthew Kidd underlined the following: ” I’m sure it’s a sign for further cooperation in this field in the years to come. It is important that we should have instruments like this to support our collaboration even in the years after our departure from the EU, but it is not because of our choice last year that we have started to do this.”

“The new convention is based on the new OECD Model Convention for the avoidance of double taxation on income”, Stock Watch reads “and on capital and incorporates all the minimum standards of the Base Erosion Profit Shifting (BEPS) project, as issued by the OECD /G20 in October 2015, those of BEPS Action 6 (Treaty Abuse) and BEPS Action 14 (Making Dispute Resolution Mechanisms More Effective). Furthermore, it includes the exchange of financial and other information in accordance with the relevant Article of the Model Convention.”… / IBNA