On 15th May 2019, the Ministry of Foreign Affairs signed an agreement for the avoidance of double taxation with the Republic of Kazakhstan in Nur-Sultan, Kazakhstan. The negotiations and adoption of the agreed text of the agreement took place on 30th May 2018 and it is expected to contribute to further developing the trade and economic relations between the Republic of Cyprus and the Republic of Kazakhstan.
The agreement is based on the OECD Model Convention for the Avoidance of Double Taxation on Income and on Capital and aims at avoiding double taxation of both States’ residents through comparable privileged provisions. The agreement provides for a withholding tax rate for interest, dividend income, royalty income, as well as defining the treatment of the capital gains tax. It is also envisaged to regulate the exchange of banking and other information in line with Article 26 of the OECD Model Convention for the Avoidance of Double Taxation on Income and on Capital.
Broadening the existing network of Double Tax Avoidance Agreements plays a key role for economic activity and enhancing political relations. The double tax treaty entered into between Cyprus and Kazakhstan will be the 65th agreement which Cyprus has signed.