Cyprus

Residential Permit for third – country nationals: new changes

On 01.01.2023 the new changes in the application for the temporary residential permit for the third country – nationals, those who are outside of EU, (“Visitor”) in Cyprus will come into effect, meaning that the following additional requirements should be satisfied: Detailed statement of bank account transactions in a financial institution in the Republic of …

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UBO Reporting: breach of personal rights

On 22 November 2022 the Court of Justice of the European Union (“CJEU”) ruled that the provision of Directive (EU) 2015/849 establishing that all Member States must ensure that information on the beneficial ownership of legal entities is accessible in all cases to any member of the general public is invalid and in conflict with …

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Unpaid Annual Levy and possible strike off

On 3 November 2022 the Department of Registrar of Companies and Intellectual Property (“ROC”) announced that it intends to proceed with the 𝐝𝐞𝐫𝐞𝐠𝐢𝐬𝐭𝐫𝐚𝐭𝐢𝐨𝐧 𝐨𝐟 𝐜𝐨𝐦𝐩𝐚𝐧𝐢𝐞𝐬, 𝐢𝐟 𝐭𝐡𝐞𝐲 𝐟𝐚𝐢𝐥𝐞𝐝 𝐭𝐨 𝐬𝐞𝐭𝐭𝐥𝐞 𝐭𝐡𝐞 𝐩𝐚𝐲𝐦𝐞𝐧𝐭𝐬 𝐟𝐨𝐫 𝐚𝐧𝐧𝐮𝐚𝐥 𝐥𝐞𝐯𝐲. The ROC may remove a company from the register if the company fails to pay the annual fee provided for …

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Tax Exemptions on the First Employment: Clarifications

On 01.11.2022 the Tax Department has issued the Circular (Νο. 10/2022) for the purposes of clarifying new tax income exemptions for the practical application as well as conceptualizing the term “first employment”. By virtue of the Circular, it should be noted that the first employment of an individual ceased to exist or never existed in …

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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 …

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IBCCS TAX Cyprus One-stop-shop services for Cyprus shipping companies

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 LLSC’s with the purpose of promoting stop-shop framework for ship-owning companies. The Law creates a new category of a corporate entity named as “Shipping Limited Liability Company” or …

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Provisional Tax Liability by Newly Incorporated Companies

According to the recent interaction between the Commissioner of Taxation and the Tax Compliance Committee of ICPAC (“The Institute of Certified Public Accountants of Cyprus”), 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 …

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EU COMMISSION PROPOSED DIRECTIVE ON SHELL ENTITIES

On 22 December 2021, the European Comission published the Proposal for a Council Directive 2021/0434, also known as the Anti tax Directive III („ATAD III“), with the stated intention being to prevent the misuse of so-called „shell“ entities for the tax purposes. ATAD III  aims to highlight the importance  of minimal substance requirements and is  applicable to …

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Expected Immigration Changes for Non-EU Family Members

The European Court of Justice on 07.09.2022 has clarified that the family members of EU citizens, who come from third countries, may not fall under the scope of temporary residence, as it is established in the Directive 2003/109/EC (the Long-term Residents Directive, or LTRD), such as seasonal workers or students. Therefore, they can directly submit the application …

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Additional Corporate Tax Residency Test – our remarks

On 21.12.2021, amendment 193(I)/2021 to the Income Tax Law has been published in the Official Gazette of the Republic of Cyprus by adopting an additional test for determination of corporate tax residency based on the incorporation principle. The new amendments will come into force on 31 December 2022. It provides that any company having its …

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