The Cyprus TAX category aims to capture legal updates, circulars, practices, developments, cases and more.
Cyprus Tax History
With the application of Cyprus to join the EU in 1990 Cyprus’s offshore tax regime which was then applicable required an overall since the then ate of 4,5% was not acceptable. Among the key changes introduced was the need to apply a uniform tax system towards resident and non-tax resident persons. The great update of the tax system was introduced in June 2002.
With Cyprus’ accession to the European union the threshold of 10% was applied which was then increased to 12.5% during the 2013 financial crisis.
Cyprus Tax Laws updates
Cyprus adopts European Union Directives and Regulations by enacting local laws and issuing guidelines and principals, an example would be ATAD package which is underway to be implemented in Cyprus in 2019 with DAG6 and other global initiatives closely following. This category aims to capture these new laws and consultation papers and give my views on them.
Double Tax Treaties
Cyprus has a series of existing double tax treaty agreements with prominent jurisdictions such as UK, US, Russia, S.Arabia and others. In this category i will be providing relevant updates to any new treaties and protocols to be signed.
Frequently circulars are issued to clarify or to modify practices and process.
Although the majority of assessments are closed before going to court my aim is to be on the look out for any such cases appearing before a district court or in the court of appeal and share that with you.
I hope you enjoy reading about these interesting topics and let me know what you think!
New Double Tax Agreement signed between Cyprus and Egypt on the 8th of October 2019. The purpose is to strengthen the bilateral relationships
Cyprus tax law forbids related party transactions on preferential terms. Transaction should be at arm’s length between related parties
Cyprus income tax for companies has always been the lowest among EU member states. Rumors have it that this will change and the tax rate increased
Cyprus Department of Taxation has issued a public consultation regarding exit tax and hybrid mismatch rules in Cyprus – ATAD