Cyprus and Kyrgyzstan signed on Monday an Agreement for the Elimination of Double Taxation with Respect to Taxes on Income and the Prevention of Tax Evasion and Avoidance, an Agreement of "high economic and political importance for the Republic of Cyprus", the Ministry of Finance has said.
The Agreement was signed in Bishkek, Kyrgyzstan by Cyprus' Minister of Foreign Affairs, Constantinos Kombos, and on behalf of the Kyrgyz Republic the Agreement by the Minister of Economy and Commerce, Bakyt Sydykov.
A Ministry of Finance press release said the signing and entry into force of this Agreement marks an important step towards further strengthening the bilateral economic, trade and investment relations between Cyprus and Kyrgyz.
The Ministry noted that the legal framework in the field of taxation is strengthened and reinforced further and at, the same time, the administrative and tax burden is reduced, without creating loopholes for tax evasion or tax avoidance.
According to the Finance Ministry, the Agreement has specific provisions for the Exchange of Tax Information as well as for the Mutual Administrative Procedure for resolving tax disputes cases, between the two jurisdictions.
The press release added that "expanding and upgrading the network of Tax Treaties, by signing another agreement, especially with such an important partner as Kyrgyz Republic, is of high economic and political importance for the Republic of Cyprus and aims to further strengthen and promote Cyprus as an international business center".
