The DTA is the standard OECD agreement between countries to remove double taxation obstacles for the development of economic relations.
It also delivers the OECD-agreed international standard on tax transparency and exchange of information and prevents fiscal evasion with respect to taxes on income.
Long standing commitment
The DTA was signed in London by the Jersey’s minister for external relations, senator Philip Bailhache, and by the Euripides Evriviades, high commissioner for the Republic of Cyprus.
Bailhache said: “The signing of the DTA with Cyprus continues Jersey’s firm and longstanding commitment to the international standards of transparency and information exchange.
“Jersey also pursues a good neighbour policy in relation to the European Union and we are therefore delighted that, with the signing of this DTA, we will be further strengthening our political and business relationships with an EU member state. The signing of a DTA with Cyprus is particularly welcome because we have a great deal in common as international finance centres.”
The UK’s vote to leave the European Union on 23 June cast something of a shadow on the crown dependencies whose legal and trading relationship with the EU is defined by Protocol 3 of the UK’s 1972 Treaty of Accession.
Under the agreement, the islands sit outside the EU for most purposes; neither contributing funds to nor receiving funds from the bloc.
Financial services, however, remains outside the scope of Protocol 3 with the islands having to establish third country agreements with EU members.