On 15th May 2019, the Ministry of Foreign Affairs signed an
agreement for the avoidance of double taxation with the Republic of
Kazakhstan in Nur-Sultan, Kazakhstan. The negotiations and adoption
of the agreed text of the agreement took place on 30th May 2018 and
it is expected to contribute to further developing the trade and
economic relations between the Republic of Cyprus and the Republic
of Kazakhstan.
The agreement is based on the OECD Model Convention for the
Avoidance of Double Taxation on Income and on Capital and aims at
avoiding double taxation of both States' residents through
comparable privileged provisions. The agreement provides for a
withholding tax rate for interest, dividend income, royalty income,
as well as defining the treatment of the capital gains tax. It is
also envisaged to regulate the exchange of banking and other
information in line with Article 26 of the OECD Model Convention
for the Avoidance of Double Taxation on Income and on
Capital.
Broadening the existing network of Double Tax Avoidance Agreements
plays a key role for economic activity and enhancing political
relations. The double tax treaty entered into between Cyprus and
Kazakhstan will be the 65th agreement which Cyprus has signed.
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