As of October 30th 2019, the parliament of Ukraine passed a draft law endorsing the amending Double Tax Treaty Protocol, signed on December 11th 2015, to the Cyprus – Ukraine Income Tax Treaty. Consequently, the amending protocol is now in operation and will come into full effect by 1st January, 2020. Main updated protocol provisions: [...]

Intellectual Property (IP) can be one of the most valuable assets of an individual or a company. Choosing the right location for the centralisation and management of IP is a highly important commercial decision. Cyprus is known as a very attractive jurisdiction for the establishment of Intellectual Property/Royalty holding companies and holding structures in general. For [...]

Protocol to the Cyprus-Ukraine Double Tax Treaty was ratified by Ukraine On 30 October 2019, the Ukrainian parliament passed a draft law ratifying the amending protocol, signed on 11 December 2015, to the Cyprus - Ukraine Income Tax Treaty. The amending protocol was previously ratified by Cyprus on 23 December 2015. As a result, the [...]

Controlled Foreign Company Rule (CFC) On 5 April 2019, the House of Representatives adopted the law implementing the provisions of the EU ATAD. The provisions of the Law apply as of 1 January 2019 (from 2019 tax year onwards). The Law introduces the below: Controlled Foreign Company rule (CFC) Interest limitation rule General anti-abuse rule [...]

The Tax Commissioner has extended the deadline for submission, of the 2017 Income Tax Return for Companies (Form T.D. 4) and Self-Employed who are obliged

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The European Bank of Reconstruction and Development (EBRD) has upgraded its projections for the Cypriot economy. In its Regional Economic Prospects (REP) report, issued today, the EBRD said the Cypriot economy will grow by 3.9% and 3.5% in 2018 and 2019 respectively, upgrading its May projections by 0.7% and 0.5%. This is the second time [...]

On 19 September 2018, the Cyprus Tax Department issued an announcement regarding Country-by-Country Reporting (CbCR) obligations related to CbCR exchange relationships as follows: The Cyprus Tax Department informs all legal entities and their representatives that, constituent Entities of Cyprus Ultimate Parent Entities (UPEs) will not be subject to local filing in their jurisdiction of tax [...]

Introduction Cyprus holding companies are widely used in the context of international business structuring to optimise the channelling of inbound and outbound investments with countries that have signed a double tax treaty with Cyprus. The Tax Department recently issued a circular on the value added tax (VAT) treatment of holding companies, which aims to provide [...]

On 1 June 2018, Cyprus ratified the double tax treaty it had signed with Andorra on 18 May 2018 (the DTT). The DTT is the first double tax treaty between the two countries. Certain further legal procedures in the two countries need to take place, following which the DTT will enter into force. Once the [...]