(a) with regard to Article 25 (mutual agreement procedure), Article 26 (exchange of information) and Article 27 (tax collection assistance) from the date the agreement enters into force, regardless of the tax term to which the matter relates, remains in force until both countries terminate it by written denunciation and diplomatic denunciation at least six months before the expiry of a calendar year. but no earlier than five years after the agreement came into force. The agreement will no longer enter into force in Cyprus from the beginning of the following calendar year. In the United Kingdom, it will no longer have an effect: however, other exemptions or reduced rates may apply depending on certain requirements imposed on businesses. For more information on the double taxation agreement with the UK, please contact our Cypriot law firm. The settlement timetable includes a convention and protocol (“arrangements”) between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the Republic of Cyprus, which is responsible for the prevention of double taxation and the prevention of tax evasion and evasion. With the Order, the arrangements are put into effect. 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. 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 1974 agreement contains no provision for the taxation of capital income.
Under the new agreement, profits made by a resident of one country as a result of the disposal of land (or property related to a stable establishment) in another country or the disposal of unlisted shares that directly or indirectly derive more than 50% of their value from real estate located abroad may be taxed in the country where the property is located. Profits from the disposal of any other object (including ships or aircraft operating in international traffic) are taxable only in the country where disposal is established. The agreement also applies to other similar taxes, such as the taxation of dividends, interest and royalties in both countries. On 22 March 2018, Cyprus and the United Kingdom signed a new double taxation agreement. Once ratified by both parties, it will replace the current agreement, which dates back to 1974. The text of the new agreement is closely in line with that of the organisation for economic co-operation and development`s (OECD) model tax treaty of 2014 to avoid double taxation of income and capital.