Cyprus's New Double Taxation Agreements

On January 1, 2015, Cyprus's new double tax agreements (DTAs) with Iceland and Lithuania, which had entered into force during 2014, became effective, bringing the number of countries with which Cyprus has DTAs in effect to 53. This article summarizes the main provisions of the newly effective agreements and of other agreements that have recently been signed and that are in the process of being ratified. Like all of Cyprus's recent DTAs they closely follow the 2010 OECD Model Tax Convention, with additional provisions in some cases regarding exchange of information and off shore activities.

Additions To The OECD Model

Exchange Of Information

All the new agreements provide for full exchange of information, usually by replicating the relevant clause of the OECD Model Convention verbatim. However, in many cases the information exchange provisions are supplemented by a protocol to the agreement providing protection against the tax authorities misusing their powers.