The negotiations between the two delegations on the double taxation agreement and the prevention of tax evasion were held from 1 to 3 November in Nicosia, led by the head of the Department for Avoidance of Double Taxation at the Tax Administration of the Croatian Ministry of Finance, Dalibor Legac, and the head of the International Tax Affairs Division at the Tax Administration of the Ministry of Finance of Cyprus, Andrie Papageorgiou.
Both states will now launch their internal procedures that will enable the signing of the agreement and its ratification by the parliaments of both countries.
According to the press release, the agreement will encourage new and intensify the existing cooperation between the two countries. Furthermore, the agreement will bring many forms of tax relief for all types of income, the improvement of conditions for increasing the mutual exchange of goods and services, the improvement of conditions for financial investments, and an increase in the level of total economic activity of both countries.
The Tax Administration underscores that when the agreement is signed, ratified and enters into force, Croatia will have double taxation avoidance agreements with all member states of the European Union.
Earlier this year, double taxation avoidance treaties were signed between Croatia and Andorra (17 October) and between Croatia and Egypt (3 October) and the treaties also help the countries to fight tax evasion.