The new double taxation agreement between Cyprus and the United Kingdom entered into force on 18 July 2018 following completion of the requisite ratification procedures.

The provisions of Article 25 (Mutual Agreement Procedure) and Article 26 (Exchange of Information) took effect immediately from 18 July 2018, without regard to the taxable year or chargeable period to which the matter relates. The provisions of Article 27 (Assistance in collection) will only take effect when Cyprus confirms through diplomatic channels that it is able to provide such assistance under its domestic law, whereupon (and to the extent permitted under Cyprus law) the provisions will have effect without regard to the taxable period to which the revenue claim relates.

The remaining provisions of the agreement will be effective in Cyprus for taxes withheld at source for amounts paid or credited on or after 1 January 2019, and for other taxes from 1 January 2019.

They will be effective in the United Kingdom:

  • For taxes withheld at source, for amounts paid or credited on or after 1 January 2019;
  • For income tax and capital gains tax, for any year of assessment beginning on or after 6 April 2019; and
  • For corporation tax, for any financial year beginning on or after 1 April 2019.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.