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Transfer PRICING LAW AND REGULATIONS

As you might be aware, on 30th June 2022, the Cyprus Parliament voted for a number of amendments in relation to the Cyprus Income Tax Law and Assessment and Collection of Taxes Law as well as the issuance of new Regulations in respect of the arm’s length principle and the …

⏱ SEPTEMBER , 2024
SUBMISSION OF PERSONAL INCOME STATEMENT 2023

The Department of Taxation informs that the submission of the 2023 Personal Income Statement via the TaxisNet system has begun at https://taxisnet.mof.gov.cy .
Based on Decree of the Council of Ministers (KDP 184/20223). the obligation to…

⏱ JUNE , 2024

Submission of Withholding Taxes & Contributions Declaration (TF 7)
For the year 2023, until July 31, 2024 The Tax Department informs that, the Tax Withholding and Contributions Declaration (TF 7) can be submitted until July 31, 2024, without the imposition of …

⏱ JUNE , 2024

TEMPORARY TAX 2024
According to the Cyprus Income Tax Law (ITL), all companies and self-employed individuals that expect to have taxable income for the tax year 2024 must estimate and declare such taxable income and pay the resulting tax in the form of two equal provisional instalments as follows:

⏱ JUNE , 2024

Cyprus Naturalisation of Foreign Nationals: An Amended Framework
On November 30th 2023, the House of Representatives in Cyprus approved an amendment on the existing Civil Registry Law leading to modernisation of the existing legal framework and modifying the prerequisites and various criteria for naturalisation of foreign nationals.

⏱ JANUARY , 2024

Digital Nomads

Who can it be beneficial for?

Non-EU or non-EEA nationals who:
● are able to operate in a work/business environment remotely through digital communication
● have been employed by a company that’s registered abroad and can perform distance work, or are self-employed rendering services,regardless of location, to clients based abroad

⏱ JULY , 2023

Public Access to UBO Registers Suspended after Judgement of the European Court

The European Court of Justice issued a judgement on November 22nd,2022 on the suspension of access for the general public to the Register of Beneficial Owners, effective immediately.

The aforementioned ruling concludes that granting public access to UBO Registers of European companies is no longer valid, since it constitutes a serious intervention regarding fundamental rights of …

⏱ FEBRUARY , 2023

Cyprus Tax Incentives – Companies benefit from increased tax deduction for Research and Development expenses

On July 7th, the Cyprus Parliament voted for an extension of tax incentives (an action plan that was voted on in October 2021) in an attempt to attract new investments, boost entrepreneurship and support start-ups. This regards an incorporation of tax deduction on research and development expenses into Article 9(1)(d) of the Income Tax Law (ITL) and is effective as of July 20th 2022 when it was published in the Cyprus Gazette.

⏱ NOVEMBER , 2022

50% Income Tax Exemption for High-Earners in Cyprus

On May 10, 2022, the Council of Ministers approved a highly significant improvement of an incentive aiming at attracting foreign executives (both EU and non-EU residents) to Cyprus to expand their presence, assist in the expansion of the technology sector island wide, as well as repatriate Cypriot professionals who currently reside and have their business abroad.

⏱ OCTOBER , 2022

Protocol between Cyprus and Switzerland to amend Double Tax

On February 3rd, 2022 a circular was issued by the Cyprus Tax Authority (3/2022) notifying of the completion of all legal procedures on behalf of both Cyprus and the Swiss Confederation, enabling the protocol on the avoidance of Double Taxation regarding taxes on income and on capital to come into force.

The protocol in question, which was signed on July 20th 2020, introduced an amendment to the 2014 Double Tax Treaty between the two countries and came into effect on November 3rd, 2021, with a substantial number of provisions also being implemented on the same day…

⏱ FEBRUARY , 2022

Cyprus ratifies Double Tax Treaty with Jordan

On December 17th 2021, Cyprus signed a new tax treaty with the Hashemite Kingdom of Jordan for the avoidance of double taxation, which was ratified and published in the Cyprus Gazette on December 31st 2021, contributing to the development of economic relations and enhancement of co-operation in tax matters between the two countries.

The Treaty is based on the OECD Model Convention for the Elimination of Double Taxation on Income and on Capital and the UN Model Tax Agreement and it incorporates the Base Erosion and Profit Shifting (‘BEPS’) minimum standards.

⏱ JANUARY , 2022

Register of Ultimate Beneficial Owners for Cyprus Companies and Other Legal Entities

On 18 February 2021, the Cypriot Parliament transposed the 5th Anti-Money Laundering EU Directive into domestic legislation, signifying the introduction of a central registry for ultimate beneficial owners of companies and other legal entities.

All parties involved are obliged to register by March 12th,2022 submitting any essential requirements.

⏱ NOVEMBER 19, 2021

Date for the submission of income tax returns extended

July 30th,2021- On July 23rd, 2021 the Tax Department issued an announcement informing all taxpayers that the income tax return for 2020 (T.D.1) for employees and pensioners as well as for the self-employed (T.D.1 for self-employed), with turnover below E70.000 and who are not obliged to submit audited accounts, is available for submission via Taxisnet.

Additionally, the announcement states that the Ministry of Finance intends to issue a decree relevant to the extension of the electronic submission of personal income tax returns for 2020, along with the payment of the income tax due, from September 30th to November 30th, 2021.
The particular extension is expected to apply for the payment of the relevant income tax due.

⏱ SEPTEMBER 9, 2021

Investment Funds

The Securities and Exchange Board of India (SEBI) has allowed entities to invest in India via various routes, such as Foreign Direct Investment (FDI), Foreign Portfolio Investment (FPI), Foreign Venture Capital Investment, Alternative Investment Fund etc. The Foreign Portfolio Investment (FPI) regime is currently the route chosen by many global investors that comply with the regulations.

⏱ JULY 8, 2021

CYPRUS TAX SYSTEM

Cyprus has a modern tax system and company registration is favourable based on the English Companies Act of 1948 (Chapter 113 – Cyprus Company Law), offering predictability in planning with more than 60 double tax avoidance agreements. Registered lawyers liaise with the Registrar of Companies and any parties of interest to facilitate the process of forming a company.

⏱ APRIL 02, 2021
0,4% LEVY ON ALL SALES OF IMMOVABLE PROPERTY

The House of Representatives of Cyprus has voted, unanimously, earlier in February, the imposing of a 0,4% levy on all sales of immovable property.

⏱ MARCH 29, 2021
IDEAS POWERED FOR BUSINESS SME FUND

The EU companies that meet the official description of SMEs, the «Ideas Powered for Business SME Fund» offers financial reimbursement of costs for applications of #trademarks and designs of up to €1, 500 per beneficiary (business). Up to grant will be on a ‘first come, first served’ basis.
Check eligibility: HERE

⏱ MARCH 29, 2021

CYPRUS OPEN REGISTRY – EU APPROVED
Cyprus has the only EU-approved “Open Registry” regime and is considered to have a beneficial Tonnage Tax System (TTS), including the three main “maritime transport” tasks; ship owning, ship management and chartering.
⏱ MARCH 5, 2021
EXTENSION ON DEFENCE TAX PAYMENT
The Tax Department in Cyprus issued an extension of the deadline for the payment of the defence contribution on dividend regarding the dividend distribution (0623) for the tax year 2018 as well as the payment of GESY (0723) regarding the specific dividend distribution until April 30, 2021.
⏱ FEBRUARY 23, 2021

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