The article has been significantly reduced and simplified and aligned with the OECD model convention. The 5% withholding tax on film and video media for television, provided for by the 1974 convention, has been abolished. The Double Taxation Convention applies to all residents of the contracting states, in this case Cyprus and the United Kingdom. The term “tax resident” applies to individuals because of their place of residence or residence and to English and Cypriot companies because of their administrative jurisdiction. Resident citizens of both countries are subject to taxes depending on the country in which the citizen has a stable home. The mandate has not been the subject of a notice of tax information and effect as it enters into force a double taxation agreement. Double taxation agreements do not require taxpayers, but are intended to eliminate double taxation and tax evasion. However, other exemptions or reduced rates may apply depending on certain business requirements. For more information on the double taxation agreement with the UK, please contact our Cypriot law firm. The double taxation agreement between Cyprus and the United Kingdom was first signed in 1974 and amended in 1980. The agreement between the two countries was reached to avoid double taxation and avoid tax evasion with regard to the taxable income of individuals and businesses in Cyprus and the United Kingdom. The Double Taxation Convention between Cyprus and the United Kingdom covers the following types of taxes: On 22 March 2018, Cyprus and the United Kingdom signed a new double taxation convention and the related protocol (the new DTT) which replaced the treaty signed between the two countries in 1974. The new agreement will enter into force as soon as the two countries have completed their national ratification procedures.
It comes into force in Cyprus from the beginning of the following calendar year. In the United Kingdom, it will take effect from the same date with respect to taxes withheld at source. With respect to corporate tax, it will come into effect on April 1, following its entry into force and, for income and capital gains tax, it will come into effect on April 6, following its entry into force. The new agreement includes detailed provisions governing the imposition of offshore oil and gas exploration and development activities, which aim to ensure that each state`s tax duties on offshore activities are respected in circumstances that, if not, could limit them by other provisions of the agreement. B such as operating activities and corporate profits. Given the short duration of some of these activities, specific rules are needed. Public service pension taxation provisions, such as pensions. B pensions paid to retired civil servants or military personnel are also substantially modified. Under the 1974 agreement, all pensions, including pensions payable for public services, are taxed only in the country where the beneficiary resides. Under the new agreement, pensions payable for national or municipal services are taxed only in the country from which they are paid, unless the beneficiary is both a national and resident of the other country, in which case the pension is taxable only in the country where the beneficiary resides.