Cyprus: Double Tax Treaty Round-Up – Winter 2015
The DTA between Cyprus and Iceland took effect on 1 January 2015
The new double taxation agreement between Cyprus and Iceland, which was signed on 13 November 2014, entered into force on 22 December 2014. The agreement is based on the OECD Model Convention for the Avoidance of Double Taxation on Income and its provisions will have effect for taxes withheld at source that are paid or credited on or after 1 January 2015 and for other taxes in respect of tax years beginning after that date.
The DTA between Cyprus and Lithuania took effect on 1 January 2015
The double taxation agreement between Cyprus and Lithuania also took effect on 1 January 2015. This agreement is also based on the OECD Model Convention and its provisions will have effect for taxes withheld at source that are paid or credited on or after 1 January 2015 and for other taxes in respect of tax years beginning after that date.
The new agreements extend Cyprus’s network of double taxation agreements to cover 53 countries.
Cyprus among the first signatories to the new OECD/G20 standard on automatic tax information exchange
Cyprus is among the 51 jurisdictions that signed the new OECD/G20 standard on automatic exchange of information on 29 October 2014 at the annual meeting of the Global Forum on Transparency and Exchange of Information for Tax Purposes held in Berlin.
The new Standard for Automatic Exchange of Financial Account Information in Tax Matters provides for automatic exchange of all financial information on an annual basis.
Cyprus has committed to implementing the Standard on a reciprocal basis with all interested jurisdictions. Cyprus is a member of the “Early Adopters” group of almost 40 countries that have committed to work towards launching their first information exchanges by September 2017. Others are expected to follow in 2018.
