Cyprus, Kyrgyzstan Ink Treaty to End Double Taxation and Curb Evasion

Cyprus and Kyrgyzstan Reach Agreement to Combat Double Taxation

In a significant development for international trade and taxation, Cyprus and Kyrgyzstan have reached an accord aimed at eliminating double taxation and bolstering efforts against tax evasion and tax avoidance. The finance ministry announced on Friday that the negotiations had been successfully concluded, setting the stage for a formal signing in the near future.

The agreement, which is poised to enhance economic cooperation between the two nations, will address taxes on income and includes measures to prevent tax evasion and avoidance. This move is seen as a positive step towards fostering a transparent and fair tax environment for businesses and individuals with cross-border activities.

The announcement, made via a post on platform X, indicates that the Treaty will serve as a replacement for the longstanding double taxation treaty with the Union of Soviet Socialist Republics from 1983, which continued to be applicable to Kyrgyzstan post-dissolution of the USSR. The new treaty is expected to be signed at a later stage, as per information obtained by CNA.

Cyprus boasts an extensive network of double taxation treaties, now encompassing 68 states. These agreements are crucial in providing tax certainty for investors and preventing the imposition of concurrent tax liabilities in two different jurisdictions. The upcoming treaty with Kyrgyzstan is anticipated to further expand Cyprus’s reach in international tax cooperation and economic exchange.

The finance ministry’s data underscores the importance of such treaties in promoting cross-border trade and investment, by ensuring that businesses are not deterred by potential tax complications. With the conclusion of these negotiations, both Cyprus and Kyrgyzstan reaffirm their commitment to creating a more streamlined and efficient fiscal framework for their respective taxpayers.