Benefits of Tax Planning for Cyprus Businesses
Business owners, it’s time to shift your perspective and recognize the game-changing impact of tax planning on your financial strategy. Whether you’re a local enterprise or a global player, understanding and leveraging tax planning in cyprus can transform your business landscape. 1. Elevating Your Bottom Line Smart Spending Embrace the power of deductibility. Tax planning […]
Transfer Pricing Rules for International Business Cyprus
In the world of international business, understanding transfer pricing is key. It’s about setting fair prices for goods, services, and ideas when different parts of a big company work together. Cyprus is a top choice for many international businesses, thanks to its great location and low taxes. So, what are the transfer pricing rules in […]
Transfer pricing circular: Simplified measures for low value transactions
Transfer pricing circular: Simplified measures for low value transactions OverviewTransfer pricing circular On 6 July 2023 a new circular was issued by the Tax Commissioner providing further guidance on the applicability of Transfer Pricing (TP) Legislation effective as of 1 January 2022. The clarifying circular specifies the ‘simplification measures’ on categories of controlled transactions that […]
Amendment of 50% tax exemption on employment income
Amendment of 50% tax exemption on employment income Overview On 30 June 2023, the amendment of the Cyprus Income Tax Law (‘’ITL’’) relating to Article 8(23A) was published in the Official Gazette of the Republic of Cyprus. Previous Article 23(A) before the amendment Based on the previous Article 23(A) of the ITL, which entered into […]
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 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 […]
