The new double taxation agreement between Cyprus and Iceland, which was signed on 13 November 2014,  entered into force on 22 December 2014. Its provisions will have effect for taxes withheld at source that are paid or credited on or after 1 January 2015 and  for other taxes in respect of taxable years beginning after that date. The agreement is based on the OECD Model Convention for the Avoidance of Double Taxation on Income and extends Cyprus’s network of double taxation agreements to cover 53 countries.