The Republic of Cyprus has signed a double tax treaty with Hong Kong, aimed at eliminating double taxation on income and addressing tax evasion and avoidance.
- The Republic of Cyprus has signed a double tax treaty with Hong Kong, aimed at eliminating double taxation on income and addressing tax evasion and avoidance.
This agreement, inked on Friday, is seen as a significant step towards enhancing economic cooperation between the two jurisdictions. The finance ministry of Cyprus stated that the treaty establishes a modern framework for tax collaboration, which is expected to facilitate business activities and strengthen investment flows.
Double tax: Modern Framework for Business and Investment
According to the ministry, the new treaty aims to reduce the overall tax burden, encouraging sustainable investments while ensuring legal certainty. It offers a clear tax treatment of transactions between Cyprus and Hong Kong, providing stability for investors.
Information Exchange and Dispute Resolution
The treaty also includes provisions for the exchange of tax information between the relevant authorities, establishing procedures for resolving any tax disputes that may arise. This is intended to enhance transparency and foster trust between the two regions.
Strengthening Economic Ties
The Cypriot government highlighted the importance of developing robust economic and political ties with international financial centres, particularly with Hong Kong. The agreement is expected to strengthen cooperation and facilitate trade transactions in an increasingly interconnected global economy.
Key Signatories
The signing took place with Koula Sophianou, Cyprus’ Ambassador to China, representing the Republic of Cyprus, alongside Harindarpal Singh Banga, the Honorary Consul in Hong Kong. On the other side, Christopher Hui, Financial Services and the Treasury Secretary for Hong Kong, signed on behalf of his region.
