· New treaty has been signed between Cyprus and the UK, which replaces the treaty signed between the two countries in 1974.
· It is expected that the new treaty will soon be ratified, thus it will become effective as from 1 January 2019.
The new treaty is generally based on the OECD Model Tax Convention framework with some modifications.
· It applies to taxes on income as well as on gains from alienation of movable or immovable property.
· For UK, the treaty covers the income tax, the corporation tax and the capital gains tax.
· For Cyprus, it covers the corporate and personal income tax, the defense tax and capital gains tax.