The Cabinet gave its approval on Wednesday to an agreement aimed at preventing double taxation and tackling tax evasion related to income taxes.
The agreement, along with its corresponding protocol, was jointly announced by Minister of Finance Makis Keravnos, following the conclusion of the council’s session.
The agreement holds great importance for the Republic of Cyprus as it establishes a framework to enhance economic cooperation and trade ties between Cyprus and the Sultanate of Oman.
“The agreement follows the OECD model convention on the avoidance of double taxation and the UN model, incorporating all the minimum requirements concerning bilateral contracts as defined by the actions issued by the OECD against base erosion and profit shifting related to bilateral tax agreements,” the finance minister explained.
“This agreement is considered significant for the Republic of Cyprus, as the Sultanate of Oman is geographically situated in the heart of the Middle East, bordering Saudi Arabia, the UAE, and Yemen,” Keravnos added.
“It is believed that it will contribute to the encouragement of investments and trade. Undoubtedly, this agreement will further benefit the economic and trade relations between Cyprus and the Sultanate of Oman,” the minister concluded.