For the first time between the two countries, the Double Tax Treaty (DTT) has been signed on 1st June 2021 in Nicosia, by the Minister of Finance of the Republic of Cyprus, Constantinos Petrides, and the Ambassador of the Kingdom of The Netherlands, Elke Merks-Schaapveld.
Based on the Model Convention of the Organisation for Economic Co-operation and Development (OECD) on the elimination of double taxation on taxes on income and on capital, and the prevention of tax evasion and avoidance, the Treaty contains the Base Erosion and Profit Shifting (BEPS) measures concerning bilateral agreements, as well as the exchange of banking and other confidential information in accordance with the relevant article of the Model Convention.
Expressing his confidence that the agreement reached will contribute to the further development of trade and economic relations between the two countries, as well as to the strengthening and promotion of investments between Cyprus and The Netherlands, the Minister of Finance of the Republic of Cyprus stated that the Treaty will ensure the tax handling of transactions between the two countries, providing stability and certainty to investors.
The Treaty is expected to enter into force one year after the ratification process has been completed in both countries.
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