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 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 […]
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 […]
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 […]
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 […]
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 […]
The Changes in the Minimum Wage in Cyprus
On 31.08.2022 the decree on the minimum wage has been adopted during the meeting of the Council of Ministers, which will be implemented under Article 3(1) of the Minimum Wage Law, Cap 183 as from 01.01.2023. New Minimum Wage Within first six months of employment in the Republic of Cyprus the minimum wage will be […]
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. 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). […]
