On April 20, 2016 the Cypriot Ministry of Finance published the text of a (FATCA) Competent Authority Arrangement between the Competent Authorities of the United States of America and the Republic of Cyprus. Unfortunately the document the Cypriot Ministry of finance released does not contain any signatures and/or date we are not sure whether the Competent Authority Arrangement has already been signed.

 

On December 12, 2014, the Government of the United States of America and the Government of the Republic of Cyprus signed an intergovernmental agreement entitled: “Agreement between the Government of the United States of America and the Government of the Republic of Cyprus to improve International Tax Compliance and to Implement FATCA” (Hereafter: the IGA). Article 3, Paragraph 6 of the IGA provides that the Competent Authorities of the United States and Cyprus (Hereafter: the Competent Authorities) shall enter into an agreement or arrangement under the mutual agreement procedure provided for in Article 27 of the Convention between the Government of the United States of America and the Government of the Republic of Cyprus for the Avoidance Of Double Taxation and the Prevention Of Fiscal Evasion with respect to Taxes on Income, done at Nicosia on March 19, 1984 (Hereafter: the DTA), in order to establish and prescribe the rules and procedures necessary to implement certain provisions in the IGA. (Article 27 of the DTA permits the Competent Authorities to also address other matters regarding implementation of the DTA).

 

The Competent Authority Arrangement includes a.o. arrangements with respect to the following matters:

·        Object and scope (Paragraph 1)

·        Registration of Cyprus Financial Institutions (Paragraph 2)

·        Time and manner of Exchange of Information (Paragraph 3)

·        Remediation and enforcement (Paragraph 4)

·        Confidentiality and data safeguards (Paragraph 5)

·        Costs (Paragraph 6)

·        Effect, consultation and modification (Paragraph 7)

·        Publication (Paragraph 8)

 

Click here to be forwarded to the Competent Authority Arrangement as concluded between the Competent Authorities of the Republic of Cyprus and the United States of America as available on the website of the Ministry of Finance of Cyprus, which will open in a new window.

 

Click here to be forwarded to the Agreement between the Government of the United States of America and the Government of the Republic of Cyprus to improve International Tax Compliance and to Implement FATCA as available on the website of the U.S. Department of the Treasury, which will open in a new window.

 

If you are interested in the text of the Convention between the Government of the United States of America and the Government of Cyprus for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income as signed on March 19, 1984, then please be advised that like many other Tax Treaties a very efficient way to locate the text of this Convention is to click on Malta or on the United States in our section DTAs and TIEAs.

 

 

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