Cyprus and Poland sign Protocol for the avoidance of double taxation

The agreement was signed between Cypriot Minister of Finance Kikis Kazamias and Ambassador of the Republic of Poland in Nicosia Pawel Dobrowolski.

Signing his last document as the Minister of Finance, Kikis Kazamias who has already resigned for health reasons and who is officially leaving the Ministry tomorrow, said he was satisfied for the successful conclusion of the talks between the two countries.

“This protocols amends the existing agreement for the benefit of both countries”, he said.

The agreement maintains the existing regime for Polish who work on Cypriot ships, approximately 9000 people, who are not taxed. The Protocol reduces withholding tax rates in respect to dividends from 10% to 5% or 0% and interests from 10% to 5%

The Agreement has also been extended to encompass a tax information exchange clause based on the provision for the article 26 of the OECD Model Tax Convention.

Kazamias wished his successor at the Ministry of Finance to give special attention to the avoidance of double taxation agreements, saying that there were many such agreements pending, either for signing or for amendment. He expressed confidence that until the end of the year, several agreements with countries from all over the world will be signed.

Asked whether the agreement is expected to boost investor interest from Poland, Kazamias said that the interest was not one-sided and there was interest from both countries in that field.

The Polish Ambassador said that the signed document shows a new approach to tax regimes and that the two countries that that joined EU at the same day are moving forward.