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Reduction of statutory interest rate on judicial awards
By an order of the Minister of Finance issued on 21 December 2018 the statutory rate of interest on judgments pursuant to Article 33 of the Courts of Justice Law has been reduced to 2 percent per annum with effect from 1 January 2019. This rate will apply for the whole of 2019. For further […]
Clarification of reporting obligations of Alternative Investment Funds
The Cyprus Securities and Exchange Commission has issued a circular (C295 dated 30 January 2019) to managers of Alternative Investment Funds (AIFs) it authorises and to Registered Alternative Investment Fund Managers clarifying their reporting obligations under articles 4(3)(d) and 31 of the AIFM Law, particularly as regards to the inception date of the fund, which […]
Reference rates for notional interest deduction for 2019
Article 9(B) of the Income Tax Law 2002 (as amended) provides for a notional interest deduction for tax purposes on new equity capital (paid-up share capital and share premium) injected into companies and permanent establishments of foreign companies on or after 1 January 1 2015 to finance business assets, calculated by applying a reference rate […]
VAT on transfer of right to dispose of immovable property
The Cyprus Tax Department has issued a circular (EE 229 dated 27 December 2018) explaining the application of Law 39(1) of 2018, which amended the VAT Law of 2000 to 2018 to bring the transfer of the effective right to dispose of immovable property as owner within the scope of VAT with effect from 1 […]
Revision of the maximum permissible interest rate under article 314A of the Criminal Code
In 2011 the Criminal Code was amended by the addition of a new article 314A, which makes it a criminal offence, punishable by up to 5 years’imprisonment, a fine of up to EUR30,000 or both, for lenders to charge interest at excessive rates. The maximum permissible rate of interest, known as the reference rate, is […]
National Risk Assessment of Money Laundering and Terrorist Financing Risks
The Ministry of Finance has announced the outcome of the first National Risk Assessment of Money Laundering and Terrorist Financing Risks (NRA), which was undertaken by the Cyprus authorities to identify, assess and understand the country’s money laundering and terrorist financing threats and vulnerabilities, in compliance with the recommendations of the Financial Action Task Force […]
Entry into force of the double taxation agreement between Cyprus and Saudi Arabia
The Cyprus Ministry of Finance has made known that the double tax agreement with Saudi Arabia, which was signed on 3 January 2018, will enter into force on 1 March 2019. The provisions of the agreement will apply to amounts paid or credited on or after 1 January 2020 with regard to taxes withheld at […]
Entry into force of the 2016 Amendments to the Code of the Maritime Labour Convention of 2006
On 11 January 2019 the Cyprus Deputy Ministry of Shipping (DMS) issued a notification to registered owners, charterers, managers and representatives of ships flying the Cyprus flag, and other interested parties regarding the adoption, under the tacit acceptance procedure, of the 2016 Amendments to the Code of the Maritime Labour Convention of 2006. Following their […]
New tax exemptions and allowances for film and audiovisual production industry
Jan. 16, 2019 Author: CONSTANTINOS CHRISTOFI Law Firm: Elias Neocleous & Co LLC Publisher: International Law Office Practice area: TAX LAW, TAX PLANNING AND ADVANCED BUSINESS STRUCTURING [/gdlr_column] [/gdlr_row]
Substantial reduction of non-performing loans in the Cyprus banking sector
On 11 January 2019 the Central Bank of Cyprus (CBC) published on its website its latest monthly analysis of data on non-performing loans in the Cyprus banking sector, covering the period ended 30 September 2018, showing aggregate non-performing facilities (NPFs) and related indicators for the domestic operations of credit institutions operating in Cyprus. Overseas operations […]
Guidance on use of pre-printed VAT receipts
The VAT Law of 2000 and the VAT (General) Regulations of 2001 require VAT invoices to be issued for all taxable transactions. Recognising that the nature of their business makes it difficult for some traders, such as canteens and mobile traders selling items with a low unit price, to provide a legal proof of supply […]
Tax Department guidance on transfers of ownership rights to immovable property
Law 39(I) of 2018 amended the VAT Law to make VAT chargeable on the transfer of the effective right to dispose of real estate or immovable property as owner. With effect from 1 January 2019 a long-term assignment of the right of ownership of immovable property (long-term lease), or the transfer of such a right […]