You are here

Cyprus - Iran sign agreement to avoid double taxation

04/08/2015 15:55
Cyprus and Iran signed on Tuesday an agreement on the Avoidance of Double Taxation, paving the way for the expansion of business and investment opportunities between the two countries, three weeks after world powers reached a deal on Iran`s nuclear activity to gradually lift international sanctions.

The Agreement on the Avoidance of Double Taxation and Fiscal Evasion with respect to taxes on income was signed in Nicosia in the presence of Deputy Finance minister of Iran Αli Askari.

“It is with great pleasure that we signed today a very important agreement that will pave the way for the expansion of business and investment opportunities between Iran and Cyprus”, said Cypriot Minister of Finance Harris Georgiades after signing the agreement.

He pointed out that the timing of this agreement could not have been better, as three weeks ago an historic agreement was reached which created conditions to build trust between Iran and the international community and contributed positively to regional and international peace and cooperation.

“Cyprus through its EU membership is offering its full support to this agreement and is ready to be part of this new beginning. In fact Cyprus, being a credible international business centre, is well-suited to act as a bridge between Iran and the European and global markets”, said Georgiades.

He stressed that the tax treaty with Iran stands out as one of the very important agreements of this kind Cyprus has signed over the years, in total 58, with different countries.

The Iranian deputy Finance Minister, speaking in Arabic through an interpreter, said he was pleased with the conclusion of the agreement and expressed hope that it would develop the cooperation between the two countries in the financial and business sectors.

He noted that it was the 48th double taxation agreement Iran has signed, saying that he hoped this would establish a significant platform for the development of relations between the two countries. Pointing out that Iran enjoys a geographical strategic position in the Middle East, he said that the country could act as a bridge for Cyprus towards the East of Asia. He also hoped the agreement would bring prosperity, peace and security for the two people.

Deputy Chairman of the Cyprus – Iranian business association Yiannos Athiainitis said after the signing ceremony, that “this historic agreement opens a channel for investments from Iran to Cyprus”.

"Cyprus can be Iran`s door to Europe. We are Iran`s most friendly country to the west. Relations between the two countries are long-standing, Iran has always been supportive in the Islamic Conference, "he said.

He noted that Iran has the largest tanker fleet in the world and that the Cyprus flag could benefit from this fleet. He also said that the agreement opens up new horizons for Cypriot companies in the emerging market of Iran.

According to a written statement by the Cypriot Ministry of Finance, the text of the treaty has been agreed between the negotiating teams of the two countries and will contribute to develop trade and economic links between the Republic of Cyprus and the Islamic Republic of Iran, as well as with other countries.

The Ministry stresses that expanding and upgrading the network of Double Taxation Agreements is of high economic and political importance and aims to further strengthen and attract foreign investment and elevates the importance of Cyprus as an international business center.