2018 No. 839

Capital Gains Tax

Corporation Tax

Income Tax

The Double Taxation Relief and International Tax Enforcement (Cyprus) Order 2018

Made11th July 2018

At the Court at Buckingham Palace, the 11th day of July 2018

Present,

The Queen’s Most Excellent Majesty in Council

A draft of this Order was laid before the House of Commons in accordance with section 5(2) of the Taxation (International and Other Provisions) Act 20101 and section 173(7) of the Finance Act 20062 and approved by a resolution of that House.

Accordingly, Her Majesty, in exercising the powers conferred upon Her by section 2 of the Taxation (International and Other Provisions) Act 2010 and section 173(1) to (3) of the Finance Act 2006, by and with the advice of Her Privy Council, orders as follows—

Citation1

This Order may be cited as the Double Taxation Relief and International Tax Enforcement (Cyprus) Order 2018.

Double taxation and international tax enforcement arrangements to have effect2

It is declared that—

a

the arrangements specified in the Convention and Protocol set out in the Schedule to this Order have been made with the Government of the Republic of Cyprus;

b

the arrangements have been made with a view to affording relief from double taxation in relation to capital gains tax, corporation tax and income tax and taxes of a similar character imposed by the laws of the Republic of Cyprus and for the purposes of assisting international tax enforcement; and

c

it is expedient that those arrangements should have effect.

Richard TilbrookClerk of the Privy Council

SCHEDULE

Article 2

EXPLANATORY NOTE

(This note is not part of the Order)

The Schedule to the Order contains a Convention and Protocol (“the Arrangements”) between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the Republic of Cyprus dealing with the avoidance of double taxation and the prevention of tax evasion and avoidance. The Order brings the Arrangements into effect.

The Arrangements aim to eliminate the double taxation of income and gains arising in one country and paid to residents of the other country. This is done by allocating the taxing rights that each country has under its domestic law over the same income and gains, and/or by providing relief from double taxation. There are also specific measures which combat discriminatory tax treatment and provide for assistance in international tax enforcement.

Article 1 provides for citation.

Article 2 makes a declaration as to the effect and content of the Arrangements.

The Arrangements will enter into force on the date of the later of the notifications by each country of the completion of its legislative procedures.

The Arrangements will take effect as follows:

a

in respect of Article 25 (Mutual agreement procedure), Article 26 (Exchange of information) and Article 27 (Assistance in the collection of taxes) from the date of entry into force of the Arrangements, without regard to the taxable period to which the matter relates,

b

in respect of taxes withheld at source, to amounts paid or credited on or after 1st January next following the date on which the Arrangements enter into force,

c

in Cyprus, in respect of other taxes for taxable years beginning on or after 1st January next following the date of entry into force of the Arrangements,

d

in the United Kingdom:

i

subject to paragraphs (a) and (b) above, in respect of income tax and capital gains tax, for any year of assessment beginning on or after 6th April next following the date of entry into force of the Arrangements; and

ii

in respect of corporation tax, for any financial year beginning on or after 1st April next following the date of entry into force of the Arrangements.

The date of entry into force will, in due course, be published in the London, Edinburgh and Belfast Gazettes.

A Tax Information and Impact Note has not been produced for the Order as it gives effect to a double taxation agreement. Double taxation agreements impose no obligations on taxpayers, rather they seek to eliminate double taxation and fiscal evasion.