Cyprus Finance Ministry has expressed satisfaction for the positive reaction of Australian authorities to initiate bilateral negotiations for the conclusion of the Convention for the Elimination of Double Taxation with respect to Taxes on Income and the Prevention of Tax Evasion and Avoidance.
The intention of the Australian authorities which was announced on November 16, 2022 by Dr. Andrew Leigh, Assistant Minister for Competition, Charities and Treasury, is the result of the longstanding efforts on the part of Cyprus authorities to initiate such negotiations, the Ministry said in a press release, on Wednesday, adding negotiations are scheduled to begin within 2024.
“Undoubtedly, the diplomatic and economic ties between Cyprus and Australia have been strengthened during recent years, given the establishment of the Australian Embassy in Nicosia,” the Ministry said, adding that “in light of the recent momentum, we are of the view that there is scope for further strengthening the cooperation between the two States, in areas such as trade, shipping, energy and investment, for the mutual benefit of both sides.”
According to the Ministry, Double Τax Τreaties serve multiple purposes and above all, they aim to reduce or eliminate double taxation of income earned by residents of each contracting state, prevent the evasion of taxes in the two states and at the same time intend to promote closer economic cooperation and eliminate possible barriers to trade and capital flows.
Extending the existing network of 67 bilateral Double Taxation Conventions is a priority for the Government, and therefore updating them according to changing international conditions is imperative, especially with jurisdictions of strategic importance such as Australia, the Ministry concluded.