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2018 Cyprus and UK Double Taxation Convention

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2018 Cyprus and UK Double Taxation Convention UK/Cyprus Double Taxation Convention Signed on 22 March 2018 This Convention entered into force on 18 July 2018 Effective in the United Kingdom from: (i) For taxes withheld at source for amounts paid or credited on or after 1 January 2019; (ii) For income tax and capital gains tax for any year of assessment beginning on or after 6th April 2019; and (iii) For corporation tax any financial year beginning on or after 1st April 2019. Effective in Cyprus from: (i) For taxes withheld at source for amounts paid or credited on or after 1 January 2019 and (ii) For other taxes from 1 January 2019. The provisions of Article 25 (Mutual Agreement Procedure) and Article 26 (Exchange of Information) shall have effect in both United Kingdom and Cyprus 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) shall not have effect until Cyprus confirms through diplomatic channels that it is able to provide such assistance under its domestic law whereupon (and to the extent permitted under that law) the provisions shall have effect without regard to the taxable period to which the revenue claim relates. HM Revenue & Customs July 2018 1 Table of Contents ARTICLE 1............................................................................................................. 4 Persons covered ...................................................................................................... 4 ARTICLE 2............................................................................................................. 5 Taxes covered ......................................................................................................... 5 ARTICLE 3............................................................................................................. 6 General definitions .................................................................................................. 6 ARTICLE 4............................................................................................................. 8 Resident................................................................................................................... 8 ARTICLE 5............................................................................................................. 9 Permanent establishment ........................................................................................ 9 ARTICLE 6........................................................................................................... 11 Income from immovable property ........................................................................ 11 ARTICLE 7........................................................................................................... 12 Business profits..................................................................................................... 12 ARTICLE 8........................................................................................................... 12 Shipping and air transport..................................................................................... 12 ARTICLE 9........................................................................................................... 13 Associated enterprises........................................................................................... 13 ARTICLE 10......................................................................................................... 13 Dividends .............................................................................................................. 13 ARTICLE 11......................................................................................................... 15 Interest................................................................................................................... 15 ARTICLE 12......................................................................................................... 15 Royalties ............................................................................................................... 15 ARTICLE 13......................................................................................................... 16 Capital gains.......................................................................................................... 16 ARTICLE 14......................................................................................................... 17 Income from employment..................................................................................... 17 2 ARTICLE 15......................................................................................................... 17 Directors’ fees....................................................................................................... 17 ARTICLE 16......................................................................................................... 18 Entertainers and sportspersons .............................................................................. 18 ARTICLE 17......................................................................................................... 18 Pensions ................................................................................................................ 18 ARTICLE 18......................................................................................................... 19 Government service .............................................................................................. 19 ARTICLE 19......................................................................................................... 20 Students ................................................................................................................. 20 ARTICLE 20......................................................................................................... 20 Offshore Activities................................................................................................ 20 ARTICLE 21......................................................................................................... 22 Other income......................................................................................................... 22 ARTICLE 22......................................................................................................... 23 Elimination of double taxation ............................................................................. 23 ARTICLE 23......................................................................................................... 24 Entitlement to benefits .......................................................................................... 24 ARTICLE 24......................................................................................................... 25 Non-discrimination ............................................................................................... 25 ARTICLE 25......................................................................................................... 26 Mutual agreement procedure ................................................................................ 26 ARTICLE 26......................................................................................................... 27 Exchange of information ...................................................................................... 27 ARTICLE 27......................................................................................................... 28 Assistance in the collection of taxes ..................................................................... 28 ARTICLE 28......................................................................................................... 30 Members of diplomatic missions and consular posts ........................................... 30 ARTICLE 29......................................................................................................... 31 Entry into force ..................................................................................................... 31 ARTICLE 30......................................................................................................... 32 Termination........................................................................................................... 32 PROTOCOL ......................................................................................................... 33 3 CONVENTION BETWEEN THE GOVERNMENT OF THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND AND THE GOVERNMENT OF THE REPUBLIC OF CYPRUS FOR THE ELIMINATION OF DOUBLE TAXATION WITH RESPECT TO TAXES ON INCOME AND ON CAPITAL GAINS AND THE PREVENTION OF TAX EVASION AND AVOIDANCE The Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the Republic of Cyprus; Desiring to further develop their economic relationship and to enhance their cooperation in tax matters; Intending to conclude a Convention for the elimination of double taxation with respect to taxes on income and on capital gains without creating opportunities for non- taxation or reduced taxation through tax evasion or avoidance (including through treaty-shopping arrangements aimed at obtaining reliefs provided in this Convention for the indirect benefit of residents of third States) Have agreed as follows: ARTICLE 1 Persons covered 1. This Convention shall apply to persons who are residents of one or both of the Contracting States. 4 2. For the purposes of this Convention, income or
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