Personal Tax Return 2023

The submission of the income tax returns for individuals in Cyprus (form IR1) for the year 2023 is now available via TaxisNet portal. The deadline for submitting tax returns and paying income tax for the tax year 2023 is on 31 July 2024. Why do you need to file IR1? All tax resident in Cyprus […]

ATAD 3: economic substance requirements

featured

In December 2021, the European Commission published the first proposal for the Anti-Tax Avoidance Directive 3 (ATAD 3). Its goal is to tackle the abuse of companies that do not carry out any economic activities – namely shell entities. Therefore, the directive is also known as the “Unshell Directive”. The proposal was approved by the […]

Marshall Islands & Substance Reporting

As of November 1, 2023, the Trust Company of the Marshall Islands has implemented a penalty fee of USD 500 for entities failing to adhere to Economic Substance Reporting (ESR). This move comes as part of the country’s commitment to upholding international standards and remaining in the European Union’s whitelist.   Reporting obligation Since 2020 […]

UAE Tax Landscape: 9% CIT

The United Arab Emirates is no longer a zero-tax jurisdiction. We were informing about this major shift in our article, back in June 2023: https://ibccs.tax/announcement/uae-corporate-tax/ Certain exemptions apply, however many of the businesses will now pay a corporation tax. On-shore entities, as well as Free Zone entities involved in transactions with on-shore entities, will be subject […]

What’s new in Cyprus in 2024?

We are highlighting 10 changes in laws and regulations that came into force this year or are expected soon.   1. Introduction of 15% Global Minimum Tax At the end 2022, the Council of the EU adopted the Directive ensuring a global minimum level of taxation -15%, for multinational enterprise groups and large-scale domestic groups. […]

Transfer Pricing rules in Cyprus

Transfer pricing is a very important and current topic in tax planning – effective as from January 2022 in Cyprus, with some amendments that have just been announced by the Tax Department. In brief, the concept of transfer pricing is directly connected to the application of the so called “arm’s length principle”. The term means […]

Tax treatment of rental income from online platforms (Airbnb, Booking etc.)

In Cyprus the real estate is booming. We observe a growing number of investments– especially in properties destined for rentals. When owning a rental property, it is crucial to know and understand the tax implications of rental income. The short-term rental market also experiences a significant increase. The Cyprus Tax Department recently clarified that the […]

CYPRUS PROVISIONAL TAX 2023 – final payment

Cyprus companies are required to apply a temporary tax assessment  of their 2023 chargeable income under the Cyprus Income Tax Law. We would like to remind about the upcoming deadline for submission of the 2nd declaration concerning provisional tax for the year 2023. The submission of return and payment of final instalment must be settled until the 31st […]

Register of Beneficial Owners – the final electronic system

The Department of the Registrar of Companies and Intellectual Property in Cyprus announced the start of the application of the final solution for the Register of Beneficial Owners from November 14, 2023. The final solution of the electronic system of the Register of Beneficial Beneficiaries is replacing the so-called “interim solution” that had been operating since March 12, […]

Increase in Social Insurance Contributions from January 2024

As per the Social Insurance Law in Cyprus, starting January 1st, 2024, both employer and employee will be required to contribute an additional 0.5% to the Social Insurance Fund. Therefore, contributions will increase from the current 8.3% to 8.8% on employees’ Insurable earnings. The rate will thereafter increase by 0,5% every five years, until it reaches 10,3%, as […]