As reported before, a Double Tax Treaty (DTT) was signed between Cyprus and Andorra on 18 May 2018. Details of the treaty have become available, as follows:
The DTT provides for Nil Withholding Tax on payments of dividends, interest and royalties between the two countries.
The treaty is based on the OECD Model Tax Convention and incorporates the minimum standards introduced by the OECD Base Erosion and Profit Shifting (BEPS) project.
The DTT also includes a principal purpose test (PPT) based on the wording of the Multilateral Convention to Implement Tax Treaty Related Measures (MLI).