On December 17th 2021, the Cyprus Minister of Foreign Affairs Mr. Constantinos Petrides signed on behalf of the Republic of Cyprus, the Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income with his Jordanian counterpart, Deputy Prime Minister and Minister of Foreign Affairs and Expatriates, Mr Ayman Al Safadi, on behalf of the Hashemite Kingdom of Jordan.
The Agreement is based on the OECD Model Convention for the Elimination of Double Taxation on Income and on Capital and the UN Model Tax Agreement, and incorporates all the minimum standards of the Base Erosion Profit Shifting (BEPS) project, as issued by the OECD /G20.
This development is expected to contribute to the expansion of the economic relations between the two countries, as well as enhance cooperation on tax matters. It also provides tax certainty and security to companies, organisations and individuals on the fiscal treatment of their income and capital gains.
Expanding and upgrading the network of the Double Taxation Conventions, by signing another one important convention, is of high economic and political importance of the Government and aims to further strengthen and promote Cyprus as an international business centre.
For more information on the entry of this latest signed double tax treaty into force and opportunities arising, feel free to connect with our associate tax team at [email protected]