Extension to the filing date of income tax return for companies and self-employed Α Decree (Κ.Δ.Π. 111/2021) was published in the Republic’s Government Gazette on 12th March 2021 whereby an extension was granted to the filing date of the Income Tax Return for Companies (T.D.4) and Self Employed with [...]
0,4% contribution on Cyprus immovable property disposals On 22 February 2021, a law was published in the Cypriot Official Gazette providing for a contribution of 0,4% on the sale of immovable property in Cyprus. The contribution of 0,4% is payable by the seller of the property and it is [...]
Protocol amending the Cyprus Germany Tax Treaty On 19 February 2021, Cyprus and Germany signed a Protocol amending the existing Cyprus Germany Tax Treaty. On behalf of the Republic of Cyprus, the protocol was signed by the Minister of Finance, Mr. Constantinos Petrides, and on behalf of the Federal [...]
Notional Interest Deduction rates for 2021 On 12 February 2021, the Tax Department issued an announcement listing the 10-year government bond yield rates as of 31 December 2020 for various countries with respect to the Notional Interest Deduction (NID) on equity. These yield rates are to be used to [...]
Ultimate Beneficial Owner (UBO) Register in Cyprus Cyprus proceeded with the transposition of the 4th AML Directive (EU 2015/849) and started the implementation of the Ultimate Beneficial Owner (UBO) Register of Companies and other legal entities in Cyprus. Registrar of Companies (RoC) The competent authority for the maintenance of the central [...]
Professional License Fee by Cyprus Municipalities As from 2021, the Committee of the Union of Cyprus Municipalities decided on the adoption of a uniform policy for the imposition of the annual professional license fee to legal entities who carry on any business, trade or profession within each municipality’s limits. [...]
20% tax exemption for newly residents Background Article 8(21) of the Income Tax Legislation provides that the lower of €8.550 and 20% of the remuneration from any employment exercised in Cyprus by an individual who was resident outside Cyprus the tax year before the year of commencement of employment [...]
Cyprus tax measures expected in 2021 On 22 October 2020, the Cyprus Council of Ministers announced certain tax measures to address aggressive tax planning. These measures follow Country Specific Recommendations (CSR) made to Cyprus by the European Commission. WHT to non-cooperative jurisdictions Currently, Cyprus does not impose any withholidng [...]
Amendments to the Assessment and Collection of Taxes Law On 20 of August 2020, several amendments were enacted in the Cypriot Assessment and Collection of Taxes Law. The amendments aim to improve tax compliance and grant the Commissioner of Taxation increased powers in relation to tax collection. The amendments [...]
General Anti-Abuse Rule (GAAR) in Cyprus The purpose of the general anti-abuse rule (GAAR) is to discourage artificial arrangements and counteract aggressive tax planning not yet been dealt with through specifically targeted provisions (SAARs). It applies from 1 January 2019 and is in line with the European Anti-Tax Avoidance [...]
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