On 22 March 2018, the new double tax treaty between Cyprus and
the United Kingdom was signed (the New
Treaty). The New Treaty is pending certain legal
proceedings by both contracting states following which it shall
take full effect on 1 January 2019 in Cyprus. In the UK for
withholding taxes for amounts paid or credited the New Treaty shall
take full effect on or after 1 January 2019, for income tax and
capital gains tax it shall take full effect from 6 April 2019, and
for corporation tax for any financial year beginning it shall take
full effect on or after 1 April 2019.
The New Treaty was signed in Nicosia by the Cyprus Minister of
Finance Harris Georgiades and the British High Commissioner Matthew
Kidd. The New Treaty updates the one signed by the two countries in
June 1974 which came into effect in March 1975 and is based on the
Organisation for Economic Co-operation and Development Model Tax
Convention for the avoidance of double taxation on income and
capital.
