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 was signed on March 22nd 2018 in Nicosia between the Republic of Cyprus and the Government of the United Kingdom of Great Britain and Northern Ireland. On behalf of the Republic of Cyprus Mr. Harris Georgiades, Minister of Finance of the Republic of Cyprus signed the Treaty and on behalf of the United Kingdom, the treaty will be signed by the British High Commissioner to Cyprus Mr. Matthew Kidd.
The new text is going to update the existing Convention, that was signed on 20/6/1974 and entered into force on 18/3/1975. The new text has been agreed between the two countries will contribute to further develop the economic relationship and to enhance the co-operation in tax matters between the Republic of Cyprus and the Government of the United Kingdom of Great Britain and Northern Ireland.
The new Convention is based on the new 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, 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.