Shell Company Classification Criteria

The main questions to ask are the follow: If one of the above is ‘YES’ the company is not a “shell” company. However, care must be taken on the question whether the ‘meaningful mind’ of the company is in the country of incorporation. If both answers are ‘NO’ the company is a “shell” company unless […]


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Cyprus – Luxembourg DTT has entered into force

The Double Taxation Treaty (DTT) between Cyprus and Luxemburg entered into force in May 2018 and will be applicable to the contracting parties as of January 2019. The DTT aims to further expand and boost the trade and economic relationship between the two countries. The DTT is in accordance to the most recent international standards […]


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Cyprus Ratifies the Hague Convention Applicable to Trusts

The Cyprus House of Representatives ratified the Hague Trust Convention by passing the Law N. 4(ΙΙΙ)/2017 referring to the Hague Convention on the legislation related to trusts and the recognition of the ratifying Legislation. The Hague Convention on the legislation related to Trusts is a treaty that was developed by the Hague Conference on Private […]


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Acquisition & Disposal Of Immovable Property In Cyprus

It is a fact that purchasing and/or selling an Immovable Property entails a stressful procedure. This article briefly outlines the procedure an individual or a legal entity must follow when acquiring or disposing of an immovable property as well as the respectful rights and obligations. Purchase of Immovable Property in Cyprus First Stage: When deciding […]


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New Cyprus-United Kingdom DTT

A new Double Tax Treaty (DTT) was signed amongst Cyprus and the United Kingdom (UK) on the 22 March 2018. The new DTT will come into effect once both states will officially ratify the DTT. The DTT is intended to further strengthen the economic ties amongst Cyprus and the UK. Obviously, once put into force, […]


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INTRODUCTION OF 5% VAT IN THE UNITED ARAB EMIRATES (UAE) AS OF 01 JANUARY 2018

The UAE Government has established a ‘Federal Tax Authority’ (FTA) which will be responsible for administering, implementing and collecting Value Added Tax (VAT). The VAT regime is scheduled to start from 1 January 2018, at a standard rate of 5 per cent. All businesses must register for VAT if their taxable supplies exceed AED 375,000/- […]


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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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