Cyprus has further extended its network of double tax agreements by signing a new agreement with Jersey. Jersey, which is a Crown dependency of the United Kingdom, is an important financial centre, with financial services accounting for a quarter of all jobs and two-fifths of economic activity.

The agreement was signed in London on 11 July 2016.  The text of the agreement has not been published, but according to the two countries’ finance ministries, it is based on the Organisation for Economic Co-operation and Development’s Model Convention for the Avoidance of Double Taxation on Income and on Capital.

Assuming that the usual provisions of the OECD Model Convention apply, it must be formally ratified by both countries before it enters into force, and will have effect from the beginning of the year following its entry into force.

The Cyprus government attaches great importance to updating, maintaining and expanding the country’s network of double tax agreements, in order to attract foreign investment and promote Cyprus as an international business centre. It hopes that the new agreement will contribute to further development of the trade and economic ties between the Republic of Cyprus and Jersey, as well as with other countries.