Cyprus implements revised tax treatment for intra-group back-to-back loans

The Cyprus Tax Department issued a circular with amendments relevant to the corporate tax treatment concerning intragroup back-to-back financing transactions. As of the 1 July 2017, The Arm’s Length Principle, as defined in the OECD Model Tax Convention on Income and Capital (Article 9), it is now applicable in Cyprus to particular intra-group back-to-back financing […]


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New Cyprus Tax Residency Law – Cyprus tax residency in 60 days

The Cyprus government has recently introduced a law that grants individuals the opportunity to become Cyprus tax residents under the condition that they fulfil certain prerequisites. The Income Tax legislation through the new law will be amended so that an individual, who does not physically reside in a country for more than 183 days during […]


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2017 Provisional Tax Declaration

It is important that all Cyprus tax resident Companies that are expected to make a profit in 2017 submit their provisional tax return form, known as Form T.D 6 as soon as possible. Based on the amended legislation, Assessment and Collection of Taxes Number 4 (1978) article 24, all Cyprus tax resident Companies are required […]


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TAX UPDATE JULY 2017

The Cyprus Tax Department (CTD) has informed the Institute of Certified Public Accountants in Cyprus (ICPAC) of their intention to abolish the practice of accepting pre-agreed minimum set profit margins of 0,125% – 0,35% on intra-group and related party financing arrangements that were in the form of back-to-back loans. It is being reminded that in […]


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Cyprus will sign the Multilateral Instrument of the OECD on the 7th of June 2017

The Cyprus government declared its intent to sign the ‘Multilateral convention to implement tax treaty related measures to prevent Base Erosion and Profit Shifting’ (Multilateral Instrument) of the OECD in setting minimum standards on Double Tax Treaties. The Ministry of Finance issued a press release stating that everything has been approved by the Council of […]


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New Tax Practice on Intra-Group Loan Facilities

INTRODUCTION In February 2017, the tax department in Cyprus announced its plan to end the existing tax practice in regards to minimum acceptable margins on loans given to related parties. The reason the tax department has decided to terminate the specific tax practice is that the tax system of Cyprus has to comply with the […]


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NEW CYPRUS DOUBLE TAX TREATIES HAVE ENTERED INTO FORCE RECENTLY

Cyprus has extended its double tax treaty (DTT) network after having introduced its new DTTs with Iran and Jersey. Cyprus – Iran DTT The Cyprus – Iran DTT has officially been introduced and will come into effect on the 1st of January 2018.  The DTT is in accordance to the OECD Model Tax Convention structure with minor […]


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Apply to Cyprus Securities & Exchange Commission

Those applying to CySEC for a CIF license are required to include an operation manual consisting of company procedures and policies, a business plan, questionnaires answered by the company’s board members, shareholders and managers as well as the company’s organisational structure.  The CIF’s board is required to comprise of two executive directors or more as […]


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Cyprus & India Tax Treaty

The amended Cyprus & India Double Tax Avoidance Agreement will come into complete effect in April 2017 as announced by the Central Board of Direct Taxes (CBDT) in India. Based on the CBDT’s recent announcement, both parties have informed each other that they have completed the ratification procedure concerning the amended agreement. The amended treaty […]


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CySEC proposes reforms for Binary Options Trading

The Cyprus Securities and Exchange Commision (CySEC) has been concerned with the deficiencies of Binary Options trading and the lack of sufficient protection towards investors. For this reason it has released a consultation paper with the proposed 5 key reforms to eliminate the problems lying within the current framework and at the same time institute […]


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