The signing of new convention between Cyprus and the UK for the elimination of double taxation
The Republic of Cyprus and the United Kingdom signed a new Convention aimed at the elimination of double taxation regarding taxes on income and on capital gains and the prevention of tax evasion and avoidance. The treaty was signed between the Minister of Finance Harris Georgiades, who represented Cyprus, whereas and the United Kingdom was represented by the British High Commissioner to Cyprus Matthew Kidd.
Please note that 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.
According to Cyprus' Finance "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 highlighted 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, 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). Moreover, it refers to the exchange of financial and other information in accordance with the relevant Article of the Model Convention.
In case you wish to know more about the new convention signed between Cyprus and the UK for double taxation elimination and how it may benefit you, please contact our director, Savvas Shiatis at
SShiatis@oneworldweb.net for a complimentary consultation.