The signed treaty
The treaty is based on the OECD Model Tax Convention for the Avoidance of Double Taxation on Income and on Capital and entered into force on the 17th of February 2017. The treaty provides for 0% withholding tax rates on dividends, interest and royalties.
In agreement with the provisions of the DTT, it will take effect as from the 1st of January 2018.
The new treaty will contribute to the further development of the trade and economic relations between Cyprus and Jersey. Advancing and growing the network of Double Tax Conventions, is of high economic and political significance.
One could argue that the objective and aim is to further strengthen and attract foreign investment in Cyprus by enriching its standing as an International Business Centre.
Furthermore the DTT expands the Cyprus double tax treaty network, which evidently unlocks and paves the way for new investment opportunities and trade relations to ensue between Cyprus and Jersey.