Unpaid Annual Levy and possible strike off
On 3 November 2022 the Department of Registrar of Companies and Intellectual Property (โROCโ) announced that it intends to proceed with the ๐๐๐ซ๐๐ ๐ข๐ฌ๐ญ๐ซ๐๐ญ๐ข๐จ๐ง ๐จ๐ ๐๐จ๐ฆ๐ฉ๐๐ง๐ข๐๐ฌ, ๐ข๐ ๐ญ๐ก๐๐ฒ ๐๐๐ข๐ฅ๐๐ ๐ญ๐จ ๐ฌ๐๐ญ๐ญ๐ฅ๐ ๐ญ๐ก๐ ๐ฉ๐๐ฒ๐ฆ๐๐ง๐ญ๐ฌ ๐๐จ๐ซ ๐๐ง๐ง๐ฎ๐๐ฅ ๐ฅ๐๐ฏ๐ฒ. The ROC may remove a company from the register if the company fails to pay the annual fee provided for […]
Tax Exemptions on the First Employment: Clarifications
On 01.11.2022 the Tax Department has issued the Circular (ฮฮฟ. 10/2022) for the purposes of clarifying new tax income exemptions for the practical application as well as conceptualizing the term โfirst employmentโ. By virtue of the Circular, it should be noted that the first employment of an individual ceased to exist or never existed in […]
Clarification on Bilateral Agreement between Cyprus and United States
On 13.10.2022 the Cyprus Tax Department notified all legal entities and their official representatives that the Bilateral Competent Authority Arrangement (CAA) for the exchange of Country-by-Country (CbC Reports) between Cyprus and the United States of America for Reporting Fiscal Years will be effective on or after 01.01.2022. As a result, if the Ultimate Parent Entity […]
One-stop-shop services for Cyprus shipping companies
On 07.10.2022 the Cyprus Parliament has adopted the Law on the Limited Liability Shipping Company (SLLC) of 2022, which establishes the official competent authority, the Register of LLSCโs with the purpose of promoting stop-shop framework for ship-owning companies. The Law creates a new category of a corporate entity named as โShipping Limited Liability Company” or […]
Provisional Tax Liability by Newly Incorporated Companies
According to the recent interaction between the Commissioner of Taxation and the Tax Compliance Committee of ICPAC (โThe Institute of Certified Public Accountants of Cyprusโ), no penalties or interest should be imposed on the entity which was incorporated within the period from 31.07.2022 (first installment of the provisional tax) to 31.12.2022 ( second installment) in […]
EU COMMISSION PROPOSED DIRECTIVE ON SHELL ENTITIES
On 22 December 2021, the European Comission published theย Proposal for aย Council Directive 2021/0434, also known as the Anti tax Directive III (โATAD IIIโ), with the stated intention being to prevent the misuse of so-called โshellโ entities for the tax purposes. ATAD III ย aims to highlight the importanceย of minimal substance requirements and isย applicable to […]
New Tax Incentives for first employment in Cyprus
On 26.07.2022, new amending provisions under Articles 8(21) and 8(23) of the Income Tax Law have been published in the Official Gazette of the Republic of Cyprus, which establish 50% tax exemption for the first employment income under certain conditions: Prior to the commencement of employment in Cyprus, the employee should not be a tax […]
The Companies Amending Law 88/1 of 2022 announces the review instead of audit of financial statements for some companies
On 24.06.2022 the Official Gazette of Cyprus has published the introduction of amendments to the Companies Law regarding the requirement of audit or review financial statements of the companies by virtue of the Companies Amending Law 88/1 of 2022.ย The aim of such changes is to simplify the process of auditing financial statements of small […]
New Transfer Pricing Law Amendments and Regulations in Cyprus
Transfer Price is a practice in accounting occurring when goods or services are exchanged between divisions (subsidiaries, affiliates, or commonly controlled companies) of the same larger entity On 30 June 2022 the House of Representatives voted on and approved amendments to the Income Tax Law and the Assessment and Collection of Taxes Law (TP legislation). […]
Cyprus: Provisional Tax 2022
Cyprus companies are required to apply a temporary tax assessment / calculation of their 2022 chargeable income under the Cyprus Income Tax Law. The temporary tax assessment/estimation is due in two equal instalments on or before following dates: 31st of July 2022, 31st of December 2022. If provisional tax payments were made based on an […]
