Extension of Tax Incentives for Reduced Rent The tax incentives provided to landlords for the voluntary reduction of rent charged to tenants – companies whose activities have been suspended due to the COVID-19 pandemic have been extended for the 2021 tax year. The Tax Law, along with the Special Defence Contribution Law, have been amended...Read More

Introduction of new rules governing derivatives on virtual currencies – Cryptocurrencies The Cyprus Securities and Exchange Commission (CySEC) issued for the first time regulations regarding cryptocurrency, which can be found in Circular C417, published in the end of November 2020. These rules have as a main aim to safeguard that Cyprus Investment Firms (CIFs), make...Read More

Cyprus – VAT Payment in Installments without Penalty Imposition As of the 2nd November 2020, the pertinent Cyprus VAT Law has been amended to provide for an allowance the VAT- Registered persons to settle the VAT that is due on 10th November 2020 in six (6) equal monthly instalments, without the imposition of additional tax,...Read More

Article 9(B) of the Income Tax Law 2002 (as amended) provides for a notional interest deduction for tax purposes on new equity capital (ie, paid-up share capital and share premium) injected into companies and permanent establishments of foreign companies on or after 1 January 2015 to finance business assets, calculated by applying a reference rate...Read More

The Cyprus Parliament has passed on the 3rd November 2017 an amendment to the relevant VAT law, effectively introducing VAT imposition at the standard rate (currently 19%) to the sale of land which is for building purposes and the leasing and/or rental of business premises.Read More

Further to the recent amendments introduced in Cyprus as to the Tax Treatment of intra-group back-to-back Financing Agreement, as of the end of June 2017 the Tax Department in Cyprus has released its Circular as to its interpretation of these new provisions. A brief summary of the interpretation to be followed by the Tax Department...Read More

In continuation of the ratification of the Cyprus-Iran Double Tax Treaty in January 2017, the Cyprus Government has announced that the Cyprus-Iran Double Taxation Treaty has now entered into force and will come into effect as from the 1st January 2018.Read More

In accordance with relevant notification by the Cyprus Tax Department, there will be a termination of the current tax practice in relation to the minimum acceptable margins on loans granted to related parties. This decision comes as a result of the Tax Department  taking into consideration the International developmentsRead More

Earlier this month, the Cyprus government approved a new scheme aimed at attracting innovative start-ups to establish their business operations in Cyprus and thus benefit from its advantageous tax regimes offered to individuals and companies, whilst at the same time contributing to Cyprus’ economy andRead More

As of the 1st of January 2017, the Special Contribution which was imposed on gross monthly earnings for salary-based employees and the self-employed and private sector pensioners in Cyprus has been abolished. This Special Contribution had been introduced as a special measure toRead More