Date Description End of each month (Jan- Dec) Payment of PAYE relating to employees’ salaries for the previous month Payment of Special Defence Contribution withheld on dividends or interest or rent paid of Cyprus tax residents in the previous month Payment of tax withheld on payments to non-Cyprus tax residents of the previous month Payment…

On 3 January 2018, the governments of Cyprus and Saudi Arabia signed an agreement for the Avoidance of Double Taxation (DTA). The DTA was signed during the official visit of the President of the Republic of Cyprus to Saudi Arabia and is based on the OECD Model Tax Convention. Main Provisions Withholding tax rate on interest…

The double tax treaty (DTT) between Cyprus and Ethiopia signed in December 2015 entered into force on 18 October 2017 as per recent update of the Cyprus Ministry of Finance. Based on the provisions of the DTT, in the case of Cyprus the DTT will take effect as from 1 January 2018 and in the…

The House of Representatives of Cyprus, for the purposes of harmonizing the legislation with the EU Value Added Tax (“VAT”) Directive, voted on 30/11/2017 a new VAT Law which amends the main VAT Law N.95(I)/2000. A. VAT on the sale of building land (apply as from 02/01/2018) The supply of undeveloped building land, in the…

The protection of natural person in relation to the processing of personal data is a fundamental right. The right to the protection of personal data must be considered in relation to its function in society and be balanced to other fundamental rights in accordance with the principle of proportionality. Nowadays, rapid technological developments and globalization…

Country by Country Reporting (CbC) The Ministry of Finance in late December 2016 issued a decree to align provisions of Cypriot tax law with the requirements of EU Council Directive (EU) 2016/881 adopting the recommendations of the OECD base erosion and profit shifting (BEPS) Action Plan 13 on country-by-country (CbC) reporting. Cyprus CbCR requirements took…

A new market called the Emerging Companies Market (“ECM”) of the Cyprus Stock Exchange (“CSE”) benefits from a simplified regulatory regime specifically designed for small and emerging companies. ECM of CSE is considered as a Multilateral Trading Facility (MTF) according to “the provision of Investment Services, the exercise of investment activities, the operation of regulated…

As of 1st July 2017, the tax treatment of intra-group financing arrangements has been amended in Cyprus. Intra-group financing transactions refers to finance activities between related parties (as defined in Section 33 of the Income Tax Law), including permanent establishments in Cyprus. Based on the Interpretative Circular issued by the Cyprus Tax Department, intra-group financing…

Extension of the deadline for settlement  of Tax arrears On 29 September 2017, the House of Representatives of Cyprus passed a law extending the deadline for submission of a claim for the payment of tax arrears from 3 October 2017 to 3 January 2018.  The new law limits the time by which tax returns up…

The Income Tax Law has been amended so that an individual who does not remain in any state for one or more periods which together exceed 183 days in the same tax year and who is not tax resident in any other state for the same tax year, be considered to be a tax resident…