Tax Certificate – obtaining rules

REQUIREMENTS FOR OBTAINING TAX CERTIFICATE On 10th of December 2015, the House of Representatives voted a number of significant tax law amendments that were published in the Government Gazette on 17 December 2015. Changes to the Requirements for Obtaining Tax Certificate The tax commissioner changed the requirements for issuance of …

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Capital Gains Tax – amendments

CAPITAL GAINS TAX On 10th of December 2015, the House of Representatives voted a number of significant tax law amendments that were published in the Government Gazette on 17 December 2015. Capital Gains Tax Gain from disposal of shares in Companies that indirectly own immovable property located in Cyprus will …

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Taxation of Individuals – amendments

TAXATION OF INDIVIDUALS On 10th of December 2015, the House of Representatives voted a number of significant tax law amendments that were published in the Government Gazette on 17 December 2015. Extension on the exemption from first employment in Cyprus Foreign individuals not being Cyprus tax residents before their employment …

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Anti-Avoidance provisions & EU PSD

Anti-Avoidance provisions related to the EU Parent – Subsidiary Directive Amended Income Tax Law also gives the right to the tax authorities to deny the availability of underlying tax relief on dividends subject to tax if the artificial arrangements were in place in order to obtain tax benefit. An arrangement …

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Taxation of dividend income

Taxation of dividend income arising from hybrid instruments Dividends payment were in certain cases treated as tax deductible dividend paying company due to classification of the instrument as hybrid one (i.e. preference share capital). Also previously, any dividends received were unconditionally exempt from income tax in Cyprus. After the amendment, …

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Limitation of loss from IP

Limitation of loss generated from the use of the IP Tax regime Under the current legislation, profits from the use or profits from the sale of intellectual property owned or developed by a Cyprus Company are eligible for 80% deemed deduction. The law is amended to cover the case of …

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Re-organizations & anti-avoidance provisions

Anti-avoidance provisions for re-organizations When the tax commissioner is not satisfied that a re-organization is carried out for real commercial or genuine economic reasons but rather for avoidance or reduction of taxes, then the tax commissioner is given the right to reject the re-organization scheme. Also the tax commissioner has …

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Related Party Transactions

Related Party Transactions Transactions between related parties should be conducted on an arm’s length basis. If this was not the case, then the tax commissioner has the right to adjust the taxable profits of the seller/provider and thus tax the difference. The law did not provide for corresponding compensating adjustment …

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Income Tax – amendments

AMENDMENTS TO THE CYPRUS TAX LEGISLATION On 10th of December 2015, the House of Representatives voted a number of significant tax law amendments that were published in the Government Gazette on 17 December 2015. INCOME TAX Tax neutrality of foreign exchange differences (realized and unrealized) The law is amended with …

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