New central bank data released today show signs of stabilization in the banking system, as both loans and deposits recorded a marginal drop. Deposits in the banking system in December 2013 decreased by €165 million, according to the Central Bank. Despite the decline, deposits by Cypriots rose for the second consecutive month, while a small [...]

New VAT legislation was introduced in 2010 across the European Union (EU) which revised the ‘place of supply’ rules for services and implemented monthly reporting of sales for both goods and services. All companies registered in Cyprus selling goods and services to other VAT registered businesses or individuals in the EU must register for VAT [...]

New Tax Changes from January 2014 1. Increase of normal V.A.T. rate (19%) and reduced V.A.T. rate (9%) from 13/01/2014 2. Increase of social contribution for employee and employer by 1% each, from 1st January 2014 3. Changes in the scales of Special defence contribution as follows: 2012 – 2013 2014 – 2016 Gross Salary % [...]

Under the Cyprus “Immovable Property Tax Laws 1980 – 2004 all property owners, regardlenss of whether they are resident in Cyprus or not, they are liable to pay an annual tax based on the total value of all the immovable property registered in their name. Cyprus property tax is calculated on the market value of [...]

The Convention between the Government of Ukraine and the Government of Cyprus for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income (the “DTT”) was eventually signed in Nicosia on 8th November 2012. On 22nd March 2013, the Cypriot Parliament ratified the DTT the Ukrainian Parliament in [...]

Bank of Cyprus shares will remain suspended until January, the island’s stock exchange said on Wednesday, after its shareholder structure was revamped by imposing losses on depositors. The shares have been suspended since March, after which the bank converted large deposits into stock to recapitalise as well as taking on some assets from defunct Laiki [...]

Following the amendment of the Immovable Property Tax Law (No. 24/1980) on the 30.04.2013 by Law 33/2013, all owners of property in Cyprus are now liable to pay an annual tax to the Inland Revenue based on their aggregate property holdings as of the 1st January each year, on the basis of the assessed valuation [...]

On 4th July 2013, Ukraine parliament approved the bill for ratification of the new double tax treaty of Cyprus – Ukraine on income and capital that was signed back in November 2012. If Cyprus ratifies the treaty and the notification are exchanged during 2013, then the new treaty will be applicable from 1 January 2014. [...]

KEY MESSAGES CYPRUS FACT SHEET

1. Saving of books and records For income tax purposes, companeis should now keep their accounting records for six years instead of seven, after the end of the tax year to which they relate to. For VAT purposes, the period for keeping accounting records remains to seven years. 2. Keeping books and records Persons, who [...]