Towards tax agreements with other countries

The Ministry of Finance is seeking to sign new tax agreements. Ministry technocrats are already in Hong Kong for the first round of negotiations aimed at signing a double taxation agreement. In fact, on the horizon of the Ministry there are new plans for agreements with other African countries, as Tunisia and Morocco have already sent an invitation to Cyprus for a meeting.

However, what is a "thorn" for the technocrats of the ministry but also for all stakeholders, is the tax agreement with India. It is recalled that Cyprus was blacklisted by India in 2013 when Cyprus refused to provide information requested by the Indian tax authorities in relation to deposits held by Indians in Cypriot banks, while the two countries have maintained an agreement since December 1994 on avoid double taxation.

According to reports, the technocrats have raised their hands with the talks now at a dead end, as there are provisions that are non-negotiable for the Cypriot side, while all stakeholders await President Anastasiadis' visit to India (which was expected to take place). in April) to discuss the issue at the political level.

Asked to comment, India's ambassador to Cyprus, Ravi Bangar, stressed that in his view the issue is not political, but purely technical. As he stated, the Indian authorities are waiting for the revised proposal of the Cypriot side. In fact, he rejected the characterization of the black list, emphasizing that this is a revision of an agreement that was made twenty years ago in conditions that have now changed.

However, the benefits for Cyprus, if it manages to reach a competitive agreement, are many, as India is an emerging power, looking for gates to Europe. Cyprus already ranks seventh in terms of foreign direct investment (FDI) in India, with the flow of investment between 2000-2014 reaching $ 7,6 billion. The lion's share of foreign direct investment in India is held by Mauritius and Singapore.

It is noted that the targeted expansion of the network of contracts to avoid double taxation of our country is an important tool as these contracts provide benefits to companies and individuals who are tax residents of one state and who conduct business or earn income from the another state.

In 2015, Cyprus signed three new double taxation agreements with Bahrain, Georgia and Iran as well as two protocols amending the agreements with South Africa and Ukraine.

Source: Liberal