The Republic of Cyprus and the Socialist Republic of Vietnam signed an Agreement for the Avoidance of Double Taxation, today at the Ministry of Finance in Nicosia. The agreement is expected to strengthen economic and political relations between the two countries.
The agreement was signed by Cyprus Minister of Finance Makis Keravnos and Vietnam’s Deputy Minister of Finance Cao Anh Tuan, marking a significant step forward in bilateral cooperation between the two countries.
Welcoming the Vietnamese delegation, Minister Keravnos described the signing as a milestone that underscores the excellent relations between Cyprus and Vietnam, despite the geographical distance separating them. He noted that both countries share common values, common goals and a clear willingness to cooperate, particularly in the economic sector.
According to the Cypriot Minister of Finance, the agreement will provide tax certainty to companies, organizations and individuals regarding the fiscal treatment of income and capital gains. He stressed that it establishes a stable and secure framework that will encourage business activity and investment while preventing tax evasion and avoidance practices that could lead to non-taxation or reduced taxation.
"It is my belief that it will strengthen our economic and trade ties, it will provide a stimulus for the promotion of mutual investments and will enhance our cooperation in tax matters without creating opportunities for non-taxation or reduced taxation through tax avoidance, providing an appropriate framework of stability and security for business and individuals for the benefit of both countries," he said.
On his part, Deputy Minister of Finance Cao Anh Tuan conveyed his appreciation for the warm reception and cooperation extended by the Cypriot authorities. He stated that he was honored to be authorized by the Government of Vietnam to sign the agreement, describing it as an important milestone in advancing economic and financial cooperation between Vietnam and Cyprus.
Cao Anh Tuan recalled that 2024 marks the 50th anniversary of diplomatic relations between the two countries, noting that economic and trade relations have recorded positive growth. Bilateral trade turnover, he said, has reached USD 111.6 million, reflecting the growing momentum in commercial exchanges.
He also highlighted the investment presence of Cyprus in Vietnam, with 28 Cypriot investment projects currently active and total registered capital nearing 470 million dollars, mainly in real estate, manufacturing and agriculture. At the same time, Vietnam is gradually expanding its investment footprint in Cyprus, he added.
Referring to Cyprus strategic advantages in tourism, finance, ports and logistics, as well as its role as a gateway linking the Middle East, Southern Europe and North Africa, the Vietnamese Deputy Minister said Cyprus has significant potential to become an even more important partner for Vietnam in the coming years.
Cao Anh Tuan noted that Vietnam has concluded 80 double taxation avoidance agreements with other countries, with the Cyprus agreement being the 81st. He underlined that the signing of the agreement is not only a demonstration of mutual commitment to cooperation, but also a symbol of the friendship between the two nations.
He further pointed to Vietnam’s network of 19 Free Trade Agreements, including new-generation FTAs such as the EU–Vietnam Free Trade Agreement, of which Cyprus is also a beneficiary as an EU member state. These agreements, he said, will further promote cooperation in trade, investment and other areas.
“We are also in the same line and totally agree with the opinion of the Ministry of Finance of Cyprus that the agreement establishes a transparent and stable legal framework in line with international practice that will contribute to fostering investment, trade, and service flows between Vietnam and Cyprus, as well as ensuring the legitimate interest of our business communities in their integration and development,” he pointed out.
(Source: CNA)
