UK-Cyprus tax treaty enters into force

The UK government has announced that the UK-Cyprus tax treaty, signed March 22, entered into force on March 22.

The treaty, which replaces the countries’ 1974 agreement, eliminates withholding tax on most payments of dividends, interest, and royalties beginning in 2019.

It also incorporates modern provisions aimed at curtailing tax treaty shopping which follows agreements reached by countries as a result of the OECD/GF20 base erosion profit shifting (BEPS) plan.