At the beginning of December 2014 Cyprus signed an intergovernmental agreement with the United States of America. The agreement targets the implementation of tax compliance between the two countries and was drafted by the U.S. Congress in 2010. The agreement was signed by the Cypriot Minister of Finance and the U.S. Ambassador in Cyprus.
In 2013 India blacklisted Cyprus for not wanting to release information about suspected tax evaders. The beginning of this year, however, brings to our attention the consideration of Cyprus’ removal from India’s blacklist. At the time, the Indian Minister of Finance considered Cyprus a warned jurisdictional area because it would not provide information required by the Indian tax authorities.
Starting January 2015 Cyprus has extended its double taxation agreements network with other three countries. The new taxation agreements Cyprus will enforce starting the 1st of January are with Spain, Norway and Lithuania and are very benefic for the island’s services sectors. In 2014 Cyprus has signed three more treaties with Switzerland, Iceland and Guernsey but those are waiting to be ratified. According to Ernst & Young, all double tax treaties Cyprus enforced in the last period are based on the OCED (Organization for Co-operation and Economic Development) model and they all contain provision on the exchange of information.
The Cypriot Council of Ministers approved and sent to the parliament a draft bill that would regulate the opening, functioning and supervision of casino resorts in the island. The bill was created as a measure of increasing the tourist inflow in Cyprus. It is a well-known fact that Cyprus mainly “lives” from tourism and it seems the establishment of casinos is the next natural step for attracting more tourists but also foreign investors, not to mention the positive impact the measure will have on the economy.