A Protocol Amending the Convention on the Avoidance of Double Taxation and the Prevention of Tax Evasion with regard to Taxes on Income and on the Government of Kypria was signed today, 19 February 2021 in Nicosia, between the Republic of Cyprus and the Federal Republic of Germany. of the Federal Republic of Germany.
The Protocol on behalf of the Republic of Cyprus was signed by the Minister of Finance of the Republic of Cyprus Mr. Konstantinos Petridis and on behalf of the Federal Republic of Germany the German Ambassador to Cyprus Mr. Franz Josef Kremp.
The Protocol introduces, inter alia, the mandatory minimum standards of actions for the Reduction of the Base Erosion and Profit Shifting (BEPS) by the Organization for Economic Cooperation and Development, regulations related to bilateral Conventions as well as a mutually agreed modification word.
As the Convention on the Avoidance of Double Taxation with the Federal Republic of Germany is not covered by the Multilateral Convention, the aim of which was the automatic and rapid introduction of actions to reduce the tax base and the transfer of profits, its main amendments Protocol concerns a word in the Preamble of the Convention and the introduction of an article “application of the agreement in special cases” (entitlement to benefit) as a word is added to a relevant article on business profits.
The updating, maintenance and expansion of the existing network of Double Taxation Avoidance Agreements, which are of the highest economic and political importance, aims at further strengthening and attracting foreign investments and promoting Cyprus as an international business center.