The Ministry of Finance on Wednesday expressed its satisfaction for the positive reaction of Australian authorities to initiate bilateral negotiations for the elimination of double taxation between the Republic of Cyprus and the Commonwealth of Australia.
Negotiations are scheduled to begin in 2024, the Finance Ministry said.
Double tax treaties serve multiple purposes, the Ministry explains. First, they aim to reduce or eliminate double taxation of income earned by residents of each state, prevent tax evasion and promote closer economic cooperation and eliminate barriers to trade and capital flows.
“Undoubtedly, the diplomatic and economic ties between Cyprus and Australia have been strengthened during recent years, given the establishment of the Australian Embassy in Nicosia,” the Finance Ministry added.
In light of recent developments, Cyprus aims to strengthen cooperation between the two states, in areas such as trade, shipping, energy and investment.
Cyprus maintains 67 bilateral double taxation treaties. Extending the existing network of treaties and updating them according to changing international conditions, is a priority for the government, the announcement concludes.