Increased tax deduction for Research and Development expenses On 7 July 2022, Article 9(1)(d) of the Cyprus Income Tax (“IT’’) Law was amended to allow a tax deduction for expenditure incurred for scientific research and Research and Development (“R&D”). The said amendments were gazetted in the official Cyprus Government Gazette [...]
Cyprus measures for EU-blacklisted jurisdictions Further to our previous post, on 21 December 2021 the Cypriot Income Tax Law and Special Defence Contribution Law were amended for the introduction of defensive tax measures that will apply in Cyprus in relation to jurisdictions included on the EU list of non-cooperative [...]
Cyprus revised corporate tax residency test On 21 December 2021, an amendment to the Cypriot Income Tax Law was published whereby an additional corporate tax residency test is introduced based on incorporation. This additional test aims to capture Cyprus incorporated / registered companies that are not tax resident in [...]
Cyprus Plan for attracting companies in Cyprus On 15 October 2021 the Cyprus government presented its Action Plan for attracting companies to operate or expand their activities in Cyprus. The new strategy is in line with the guidelines of the European Commission and the Recovery and Resilience Facility, and its [...]
Extension to the filing date of tax returns In accordance with an amending Assessment and Collection of Taxes law published on 20 April 2021, the following deadlines are extended to 30 September 2021: • Electronic submission of the 2020 personal income tax return (TD1A) of individuals and payment of [...]
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 [...]
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 [...]
Covid19 - Cyprus Government Response Economic Support Measures to mitigate the effects of COVID19 in the Cyprus economy In the context of the measures taken by the government to support companies / businesses affected by the restrictive measures imposed to limit the spread of COVID19 (Coronavirus), the Government [...]
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