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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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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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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Decrease of Public Interest Rate

The Public Interest Rate is decreased from 5% to 4,75% as from 1st of January 2013 onwards. This interest is imposed on late payment or refund of tax liabilities. The previous Public Interest Rates were as follows: Up to 2006:              9% From 2007 – …

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Amendments to the Income Tax and VAT Legislation

Recent amendments to the Income Tax and the VAT legislations were recently voted by the House of Representatives, the summary of which are stated below. INCOME TAX LAW The House of Representatives has voted on 25 October 2012 to extend the law on special settlement of the tax liabilities up …

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Amendments on The Double Taxation Treaty Cyprus – Poland

The protocol amending the double taxation treaty between Cyprus and Poland has been signed on behalf of both countries on 16 March 2012. The protocol has been ratified by Cyprus on 30 March 2012. The protocol introduces a number of amendments to the existing Double Taxation Treaty, the summary of …

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Tax on Rental Income

The rental income earned by a Cyprus tax resident, either physical or legal person, from an immovable property situated either in Cyprus or abroad is subject to taxation in Cyprus as follows: Physical person – Income Tax The Rental income earned by physical persons is added with the employment income …

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Recent amendments on the Tax legislation

The House of Representatives of Cyprus has approved on 24 May 2012 a number of amendments on the Tax legislation. These amendments apply from the fiscal year 2012 onwards. These amendments were approved in an effort to boost the economy and to increase the attractiveness of Cyprus for foreign investments. …

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