On August 4, 2015 the Republic of Cyprus and the Islamic Republic of Iran proceeded with the signing of a Double Tax Treaty on Income and Capital. The conclusion of this treaty further expands the existing wide Cyprus tax treaty network.
The Cyprus Ministry of Finance in its press release on the conclusion of the Treaty, emphasized on the fact that the agreed treaty text “will contribute to develop the trade and economic links between the Republic of Cyprus and the Islamic Republic of Iran, as well as with other countries. Expanding and upgrading the network of Double Taxation Agreements, is of high economic and political importance and aims to further strengthen and attract foreign investment and elevates the importance of Cyprus as an international business centre.”
The Treaty is based on the OECD Model Convention for the Avoidance of Double Taxation on Income and on Capital. The Treaty will come into effect upon its ratification by both countries.