Estonia Concluded Agreement for Avoidance of Double Taxation With Cyprus

17.10.2012

Nr 371-E

Foreign Minister Urmas Paet and Foreign Minister of Cyprus Erato Kozakou-Marcoullis signed an agreement for the avoidance of double taxation and an agreement for the prevention of fiscal evasion between Estonia and Cyprus in Luxembourg.

Foreign Minister Paet stated that the goal of the agreement for the avoidance of double taxation is to facilitate investments, ensure equal treatment of people, and abolish double taxation, which can sometimes occur as the cumulative effect of the laws of two countries. “To accomplish this goal, the agreement limits the income taxes that can be set by the country that is the source of the income on the resident of another country. The agreement also creates more opportunities to prevent tax fraud,” he said.

The agreement also helps to prevent discrimination against citizens, residents and companies of the countries that are party to the agreement by setting regulations for equal treatment.

Estonia has concluded agreements for the avoidance of double taxation with 49 countries.