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 [...]

The Cyprus House of Representatives voted on 03/11/2017 a new VAT Law, namely ‘Ο περί Φόρου Προστιθέμενης Αξίας (Τροποποιητικός) (Αρ.3) Νόμος του 2017’, (hereinafter the ‘amending law’), which amends the main VAT Law N.95(I)/2000, (hereinafter the ‘main VAT Law’). It was published in the Official Gazette of the Republic of Cyprus on 13 November 2017 [...]

The plenary session of the House unanimously approved the bill, which entitles a person to be considered a tax resident of the Republic, provided that he meets certain conditions. According to the explanatory report submitted to the House of Representatives, the law amends the Income Tax Law so that a person who does not remain [...]

The Cyprus Tax Department (CTD) has informed the Institute of Certified Public Accountants in Cyprus (ICPAC) of their intention to abolish the practice of accepting pre-agreed minimum set profit margins of 0,125% - 0,35% on intra-group and related party financing arrangements that were in the form of back-to-back loans. It is being reminded that in [...]