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 [...]
Protocol to the Cyprus-Russia Double Tax Treaty (DTT) On 10 August 2020, Cyprus and Russia concluded the negotiations of a new protocol to amend the existing provisions of the Cyprus-Russia tax treaty. 15% WHT on dividend and interest payments According to the Protocol, the existing withholding tax (WHT) rates [...]
Application of the Anti-Tax Avoidance Directive (ATAD) in Cyprus The ATAD aims to implement the recommendations arising from the OECD/G20 Base Erosion and Profit Shifting (BEPS) Project and also introduce a general anti-abuse rule which is not BEPS related. The ATAD includes anti-avoidance measures in the following areas: A General [...]
Taxation of P2P Interest Income Recently we assisted a European private investor relocating to Cyprus. As part of our pre-arrival planning, we reviewed his worldwide incomes to determine his tax position in Cyprus and his global effective tax rate. Upon review, we determined that the majority of his incomes [...]
Changes on the taxation of intangible assets On 17 July 2020, the Cypriot House of Representatives approved a bill amending the Income Tax Law introducing changes with respect to the taxation of intangible assets. The changes relate to all types of capital-nature intangible assets, other than Intellectual Property (“IP”) [...]
Payment of final tax for 2019 We would like to remind you that the payment deadline for the final tax for the tax year 2019 for companies and self-employed individuals preparing audited financial statements is the 31st of August 2020. Payment of income tax due for 2019 The payment [...]
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