The International Economic Relations Directorate of the Ministry of Finance of Greece issued a Circular dated on the 31.03.2016 clarifying the provisions of the Double Tax Treaty between Greece and Cyprus. Before the issuance of the aforementioned circular, the Greek taxpayer had to pay 10% on dividends from the Cyprus Company in Greece. However, the Circular clarifies that the [...]
The House of Representatives voted on 10 December 2015 the remaining changes to the tax laws, which the Government of Cyprus have agreed with the private sector over the last few months. In an effort to improve the tax system of Cyprus, eliminate provisions which create issues on the day to day application of the [...]
On Friday, the 11th of December 2015, the Finance Ministry of the Republic of Cyprus announced in a press release that whilst in Kiev, Cyprus and Ukraine, signed a protocol amending their bilateral double taxation avoidance convention. In a later statement, the Ministry added that the signed protocol will come into force not earlier than [...]
Cyprus Double Tax Treaty network has been extended with five treaties becoming effective as of 1 January 2015. These are treaties with Iceland, Lithuania, Norway, Spain and UAE. Treaties which been signed and have been ratified/in the process of ratification and expected to come into effect on 1 January 2016 are with Bahrain, Georgia, Guernsey, [...]
Cyprus introduced provisions to allow notional deduction of interest in cases where funds are introduced to the company in the form of equity instead of interest bearing or interest free loans. The main provision of the new law are: Deemed interest deduction will be allowed on “new equity funds” introduced into a Cyprus tax resident [...]
The House of Representatives have passed most of the changes proposed by the Government relating to income tax and the defence tax. Also a numbe of changes have been made to the capital gains tax law and the land transfer fees. For a number of the proposed changes to the income tax law, the assessment [...]
The Russian Ministry of Finance further clarifies what is needed for confirming beneficial ownership for Russian source income. In a recent letter issued by the Russian Ministry of Finance, they explained that, in order to apply reduced withholding tax rates under a double tax treaty, the recipient of the income must provide the tax agent [...]
On 1st April 2015 Cyprus and South Africa signed a Protocol which amends the double tax agreement between the two countries (agreement which was wigned in 1997). There are two changes effected by the Protocol to the treaty, which are the following: (a) The introduction of withholding tax on dividends paid. Upto now, there was [...]
SUMMARY OF THE NEW LAW 1. Introduction On 21 March 2015, Law No. 4321/2015 was enacted in Greece, which includes, among other tax provisions, the introduction of 26% withholding tax on payments to specified categories in order to allow deductibility of corporate expenses to the payor. The new provision leaves a lot of issues open [...]
The agreement for the avoidance of double-taxation with respect to taxes on income was signed today between the Republic of Cyprus and the Government of the Kingdom of Bahrain. According to a Finance Ministry announcement, the text agreed between the two negotiating teams of the two countries will contribute to the further development of commercial [...]