Cyprus PIO: News Update in English, 98-12-07

Cyprus Press and Information Office: News Updates in English Directory - Previous Article - Next Article

From: The Republic of Cyprus Press and Information Office Server at <http://www.pio.gov.cy/>

Monday, 7 December 1998

CONTENTS

• [01] Cyprus and Russia sign new tax agreement
• [02] Council of Ministers approves Cyprus' negotiating positions
• [03] Consumer Price Index for November 1998

[01] Cyprus and Russia sign new tax agreement

The agreement, which was signed by Cyprus Finance Minister Christodoulos Christodoulou and Russian Deputy Minister of Finance Alexei Koudrin, was described as the "most important event for the Cyprus economy" in 1998.

The two ministers also signed a memorandum on bilateral relations in the field of Economy and agreed to establish a Russia - Cyprus Business Council.

The new agreement for the avoidance of double taxation provides for a review of the taxation of profits on dividends which will be calculated in accordance with the 1992 agreements of the Russian Federation with European countries.

It was also agreed that there would be no taxation for profits made from services or profits from interests.

Moreover commercial and financial co-operation between the two countries was also discussed during the meeting.

The two sides agreed to convene the second meeting of the Joint Intergovernmental Committee in the first six months of 1999 in order to discuss the current situation, prospects and ways to promote commerce and trade exchanges as well as co-operation between the Chambers of Commerce and Industry of the two countries.

Commenting on the memorandum, Mr. Christodoulou pointed out that it would decisively contribute to increasing the commercial and economic relations between Cyprus and Russia.

[02] Council of Ministers approves Cyprus' negotiating positions

"Negotiations on these eight chapters will take place in the first six months of next year, during the German EU presidency" Cyprus chief negotiator George Vassiliou said after last Friday's extraordinary meeting.

Mr. Vassiliou said that all interested parties have been informed about the screening process and that there will be more consultations with the EU before the positions are formally put forward.

He explained that most of these chapters deal with consumer issues, as well as with the free movement of goods as part of the unified market.

"Everybody understands the importance of harmonising Cyprus' regulations with the acquis communautaire and we hope that by the end of 2000 or in 2001 at the latest, we will have some deals, he added.

The eight chapters whose screening process has already been completed concern company law, free movement of goods, fisheries, consumers' protection of health, statistics, external relations, customs union and competition policy.

[03] Consumer Price Index for November 1998

From the Republic of Cyprus Press and Information Office (PIO) Server at http://www.pio.gov.cy/

Cyprus Press and Information Office: News Updates in English Directory - Previous Article - Next Article