The Department of Finance welcomes the positive response from the relevant authorities of the Commonwealth of Australia to commence bilateral negotiations to conclude a Convention for the Elimination of Double Taxation in respect of Taxes on Income and to Combat Tax Evasion and Avoidance.
In a statement today, the Ministry of Finance notes that the Australian authorities' intention, which was announced on November 16, 2022 by the Australian Deputy Minister for Competition, Philanthropy and Finance, Dr Andrew Lick, is the result of years of efforts by the Cypriot authorities to open negotiations.
Negotiations are planned to start within 2024, he adds.
According to the Ministry of Finance, undoubtedly, diplomatic and economic ties between Cyprus and Australia have strengthened in recent years, also as a result of the establishment of the Australian Embassy in Nicosia.
"In light of the recent momentum created by the signing of this Convention, the necessary conditions are established for further strengthening cooperation between the two States, beyond tax matters, in the areas of trade, shipping, energy and investment, for the benefit of both sides' economies," it said.
Noting that the Double Tax Treaties serve multiple purposes, the MoF adds that above all the aim is to reduce or eliminate double taxation of income earned by residents of each contracting state, to prevent tax evasion in the two states and at the same time to promote closer economic cooperation between the two states and to eliminate potential barriers to trade and capital flows.
Expanding the network of Double Tax Conventions, currently amounting to 67 transnational Conventions, is a priority for the Government, and therefore their updating is required in line with changing international conditions, particularly with jurisdictions of strategic importance such as Australia.
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