Cyprus and France on Monday signed a Convention for the Elimination of Double Taxation with Respect to Taxes on Income and the Prevention of Tax Evasion and Tax Avoidance.

The Convention and its protocol were signed by Minister of Finance Makis Keravnos on behalf of Cyprus and by Salina Grenet-Catalano, Ambassador of France to Cyprus, on behalf of the French Republic, with both stating the new agreement will create the conditions for more investments and better cooperation between of the two countries’ tax authorities.

The signed Convention updates the existing one which was signed back in December 1981, reflecting the latest international tax developments. The new Convention will contribute to the further enhance of trade and economic ties between the two countries, safeguarding fair and equitability.

It also provides tax certainty and security to companies, organisations and individuals on the fiscal treatment of their income and capital gains to existing and new investors. The Convention is based on the OECD Model Tax Convention on Income (2017 Model) and incorporates all the minimum standards of the Base Erosion Profit Shifting (BEPS) project, as issued by the OECD /G20.

Double Taxation Conventions are considered as of high economic and political importance as the government aims to further strengthen and promote Cyprus as an international business center.

Speaking after the signing ceremony, Keravnos said he was certain that the agreement will create “even better conditions for cooperation of Cyprus with the French Republic in the economy as for more investments with a mutual benefit for both countries and their peoples.”

On her part, Catalano said the new agreement will provide our citizens and our businesspeople an updated legal framework on issues concerning taxation, adding the agreement reflects the strong ties among the two countries and aims to strengthen cooperation in the economic field.

She also noted that the agreement will also strengthen collaboration on tax issues between the two countries, “which opens new avenues of cooperation.”

This is another step forward for our excellent relations on all fields and, in this case, on issues of taxation, the French ambassador concluded.