In what can be considered a start of a better foreign affairs system a double taxation avoidance was signed in a recent session of the Ministers of Foreign Affairs of the Council of Europe.
The treaty was signed jointly by Foreign Ministers Nicos Christodoulides Maria Ubach Font on behalf of Cyprus and Andorra respectively.
The treaty will serve to facilitate better communication and trade and will help develop the existing economic relationship between the two nations. The treaty will also serve to improve co-operation in issues of tax between the Cyprus and Andorra, with the latter being one of the few European countries Cyprus doesn’t have a convention with.
Based upon the OECD Model Convention for the Avoidance of Double Taxation on Income and Capital, the convention passes all minimum standards of the Base Erosion Profit Shifting (BEPS) project, as issued by the OECD/G20. It also includes financial and other informational exchange according to the relevant Article of the Model Convention.