An updated agreement for the elimination of double taxation on income and on capital has been signed between Cyprus and the United Kingdom. The new text of the agreement is going to update the one that was signed on 20/6/1974 and which came into force on 18/3/1975. The date on which it will come into force is going to be published in the Official Gazette.
It is a step of significance, which further opens the way for the expansion of the economic, commercial and financial ties between the two governments.
As the British High Commissioner, Mr. Matthew Kidd commented “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…”.
The new agreement is based on the OECD Model Convention for the avoidance of double taxation on income and on capital and incorporates all the minimum standards of the Base Erosion Profit Shifting (BEPS) project, those of BEPS Action 6 (Treaty Abuse) and those of 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.