07.06.2012 The Estonian parliament approved a draft treaty on avoidance of double taxation with Cyprus. Will such agreement have impact on the interaction between the two countries?
Most likely – no. Such agreement, to a greater extent, will be a technical document, which every country in Europe shall conclude among themselves. This follows from the characteristics of the Estonian tax system, its fringe feature is – to impose the corporate tax in case when the companies resolve to distribute the profit as dividends, fragile benefits and other payments not related to the activities of the companies.
All previous agreements concluded by Estonia with other countries did not create additional benefits.