Cyprus And The Seychelles Commence Tax Treaty Talks

by Lorys Charalambous, Tax-News.com, Cyprus

17 January 2006

A Cypriot government delegation was in the Seychelles last week to kick off negotiations that will lead to a Double Taxation Avoidance Agreement between the two countries, according to an online report published by Seychelles Nation.

An initial agreement to start the negotiations was last week signed by Lekha Nair, the principal secretary of the Seychelles Department of Finance and by Mr George Poufos Commissioner and Director of the Cypriot Inland Revenue.

A Seychelles Department of Finance statement quoted in the report noted that the agreement, which will provide credits for tax paid on income earned in either jurisdiction, would provide more certainty in tax payments for business and will encourage investment flows between the two countries, particularly with regards to the tourism sector.

The department also stated that Cyprus has shown "keen interest" in starting negotiations towards a a Bilateral Investment Promotion and Protection Agreement, the report stated.

The Seychelles has signed tax treaties with several countries including China, South Africa, Indonesia, Thailand, Oman, Malaysia, Namibia and Zimbabwe. In November, the Seychelles also commenced talks towards the conclusion of a DTAA with Belgium which would be the first such agreement that the Seychelles has signed with a member state of the European Union.

Meanwhile, Cyprus presently has 32 Double Tax Agreements covering 40 States, including most EU Member States.

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