Cyprus and France Ratify Updated Double Tax Treaty to Combat Double Taxation and Tax Avoidance

The Ministry of Finance announced on Monday that the Republic of Cyprus and France have ratified an updated double tax treaty, aimed at eliminating concerns of double taxation and strengthening measures against tax avoidance. The agreement, a renewal of a previous arrangement dating back to 1981, was signed by Finance Minister Makis Keravnos on behalf of Cyprus and Cyprus Ambassador Salina Grenet-Catalano on behalf of the French government.

Expressing satisfaction with the revised treaty, Finance Minister Keravnos stated that signing the agreement was a matter of great joy and thanked the French Ambassador for their collaborative efforts. He highlighted that the updated treaty modernizes the 1981 agreement and applies to the incomes of natural or legal persons who are tax residents of Cyprus and France. The provisions of the agreement cover income tax, corporate tax, a special contribution for defense, and capital gains tax.

Minister Keravnos expressed confidence that the agreement would create better conditions for economic collaboration between Cyprus and France, facilitating increased investments for the mutual benefit of both countries. Ambassador Catalano acknowledged the necessity of updating the agreement, in existence since September 1981, to incorporate new regulations and data.

"We are very pleased with the signing of this new agreement between France and Cyprus, which will provide our citizens and our businesses with an updated legal framework on tax matters," Catalano said. She emphasized that the agreement reflects strong bonds between the two countries and aims to enhance cooperation, particularly in the financial sector.

Catalano highlighted that the agreement will strengthen collaboration between the tax services of both countries, opening new avenues for cooperation. The primary objective is to establish a legal framework aligning with the latest international rules and data on taxation, representing a significant step forward in their excellent bilateral relations, specifically in tax matters.

By fLEXI tEAM