On March 22th, the Republic of Cyprus and the United Kingdom signed a new Convention for the elimination of double taxation based on the OECD Model Convention for the avoidance of double taxation on income and capital. The agreement was signed in Nicosia by Finance Minister Harris Georgiades and British High Commissioner Matthew Kidd.
The new version includes, inter alia, the minimum standards of actions on base erosion and profit shifting regarding bilateral treaties — treaty abuse, and making dispute resolution mechanisms more effective. The new document also provides for the exchange of banking and other information within the framework of the above-mentioned Model Convention.
The authorities say that ‘the adjustment, maintenance and expansion of our network of agreements on the avoidance of double taxation is of great economic and political importance, and also aims at further attracting foreign investment and promoting Cyprus as an international business centre.’