Holding and trading in securities

Holding and trading in securities has a number of tax incentives in Cyprus. The following are relevant: Gains from disposal of titles qualifying as securities are not taxable. Titles, as per the Income tax law, include: Ordinary shares. Preference shares. Founder’s shares. Options attached to on titles. Debentures and bonds. …

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Immovable Property Tax 2016 – update

The House of Representatives has voted changes to the Immovable Property Tax (IMP) on 14 July 2016. The changes were published in the Government Gazette on 25 July 2016 and apply for the tax year 2016. The Immovable Property Tax (IMP) applies to both physical and legal persons (taxpayers) and …

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Exchange of Information

COMMON REPORTING STANDARD FOR AUTOMATIC EXCHANGE OF INFORMATION Introduction The Common Reporting Standard (CRS) for Automatic Exchange of Information was introduced in an effort to combat tax evasion and tax avoidance. In total 96 countries (participating jurisdictions) signed so far the CRS with introduction of the CRS as from 1st …

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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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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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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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