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 [...]

(ARTICLE 13 – ‘Capital Gains’ UPDATE)  Capital gains tax on Cyprus shares holding immovable property in Russia has been postponed UPDATE 29 DECEMBER 2016 In an announcement by the Cyprus ministry of finance on 29 December 2016 it is stated that an agreement has been reached between the Russian Authorities and the Cyprus authorities for [...]

Cyprus-Iran: The treaty entered into force on 5th March 2017 and will apply as from 1st January 2018. It provides for a 5% withholding tax rate on dividends paid to a company that holds directly at least 25% of the capital of the paying company, otherwise, the rate will be 10%. It also provides for a [...]

Cyprus and Luxembourg signed a tax treaty on 8 May 2017. The treaty is expected to strengthen economic ties between the two EU member states. The treaty, which is based on the OECD model treaty, provides for the following maximum withholding tax rates on dividends, interest and royalty payments: • Dividends: 0% withholding tax on [...]

Inflation in Cyprus increased to 1.5% in March 2017, from 1.4% in February and from --2.2% in March 2016, according to Eurostat, the statistical office of the European Union. Meanwhile the Euro area annual inflation was 1.5% in March 2017, down from 2.0% in February. In March 2016 the rate was 0.0%. European Union annual [...]

The amended Cyprus & India Double Tax Avoidance Agreement will come into complete effect in April 2017 as announced by the Central Board of Direct Taxes (CBDT) in India. Based on the CBDT’s recent announcement, both parties have informed each other that they have completed the ratification procedure concerning the amended agreement. The amended treaty [...]

  The Cyprus Tax Department has recently announced the official 2017 reference rates to be used for Notional Interest Deduction (NID) purposes. Specifically, Article 9B of the Income Tax Law of 2002 as amended provides for a notional interest deduction for tax purposes on new equity capital injected into Cyprus resident companies or permanent establishments [...]

The Cyprus Parliament has recently approved and voted the bill proposed by parliamentary parties which regulates the payment of overdue taxes in various monthly instalments. The Law was published in the Cyprus Gazette newspaper on 03/02/2017. This new Law gives the Tax Commissioner the right to reduce the interest and penalties applicable to overdue income [...]