Transfer Pricing update: Termination
Transfer Pricing Update: Termination of circulars concerning ”back-to-back” financing arrangements Overview of abandoned main circular On 30 June 2017, the Cyprus Tax Authorities (”CTA”) issued the circular no.3 in respect of back-to-back financing arrangements. Based on the Circular, Cyprus companies would have the option to either adopt simplification rules (e.g. the recognition of the net […]
Clarifications – Articles 8(21A)
Clarifications in respect of the application of Articles 8(21A) and 8(23A) of the Cyprus Income Tax Law On 1 November 2022, the Cyprus Tax Department of the Ministry of Finance issued the Circular no. 10/2022 in respect of the part exemption from income tax of the remuneration regarding the first employment exercised in Cyprus. The […]
Extension to the deadline of the submission of tax return (TD1)
Extension to the deadline of the submission of tax return (TD1) and payment of tax in respect of the fiscal year 2021 On 28 July 2021, the Tax Department announced that, in accordance with a decision of the Council of Ministers, a decree will be issued stating that the deadline of submission of the personal […]
Amendments on employment income exemptions
Amendments on employment income exemptions Overview On 15 July 2022, the House of Representatives in Cyprus passed an amendment to the Income Tax Law (“ITL”) in respect of Articles 8(21) and 8(23) of the ITL, providing for a 20% or 50% exemption from income tax for individuals exercising employment in Cyprus. On 26 July 2022, […]
Introduction of New Transfer Pricing Rules as of 1 January 2022
Introduction of New Transfer Pricing Rules as of 1 January 2022 Overview On 30th June 2022, the Cyprus Parliament voted for a number of amendments in relation to the Cyprus Income Tax Law and Assessment and Collection of Taxes Law as well as the issuance of new Regulations in respect of the arm’s length principle […]
Special Defense Contribution – Amendment
Special Defence Contribution (”SDC”) – Amendment on application of reduced rate on interest income Overview On 26 May 2022, the House of Representatives passed amendment to SDC Law which is effective as of 8 June 2022, the date of its publication in the Official Gazette of the Republic of Cyprus. SDC Law amendment The amendment […]
Submission of tax return (TD1) in respect of the fiscal year 2021
Submission of tax return (TD1) in respect of the fiscal year 2021 Overview On 8 April 2022, the Cyprus Tax Department announced that the tax return for individuals (TD1) in respect of the fiscal year 2021 is now available electronically through taxisnet online system. Obligation for submission a tax return Based on the regulation Κ.Δ.Π. […]
ATAD3 or ‘‘UNSHELL Directive”: How is your business affected?
ATAD3 or ‘‘UNSHELL Directive”: How is your business affected? Overview On 22 December 2021 the European Commission published a draft proposal setting out union rules to neutralise the misuse of shell entities for tax purposes, referred to as Anti-Tax Avoidance Directive 3 (“ATAD 3”). The draft proposal is in line with the reflections undertaken at […]
Transfer Pricing Study: The Cyprus framework
Transfer Pricing Study: The Cyprus framework Overview On 30 June 2017, the Cyprus Tax Authorities (‘’CTA’’) issued a Interpretative Circular 3 (“the Circular”) outlining the transfer pricing guidelines in respect of intra-group back to back loans, aiming to replace the minimum required profit margin that was applicable up to that date. The Circular provides for […]
Why Cyprus?
Why Cyprus? Cyprus is a modern, cosmopolitan, transparent business centre offering opportunities for investment across a wide range of sectors. Cyprus is committed to offering a high quality, duly regulated service and unique value proposition that ensures the best possible experience for investors and businesspeople worldwide. In a business-friendly environment, with a highly skilled and […]
