Aggressive tax planning: the European Commission gives recommendations to six Member States The European Commission has issued recommendations to the EU Member States, six of which have been advised to enhance countering ‘aggressive’ tax planning. The aggressive tax planning holds an intermediate position between allowable tax planning and tax evasion (and cannot be equated
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On 12 February 2020 the information that European Commission has sent formal written notices to some Member States warning on non-compliance of their national anti-money laundering and terrorist financing (AML/FT) legislation with current European standards established by EU Directive 2018/843 and other acts has appeared. According to European Commission, the legislation of the following states does
In December 2019 the Municipality of Limassol has published an information of imposition of annual trade license fees on legal entities in this region of Cyprus on its official website. The abovementioned decision was made 26 September 2019 in accordance with Articles 104 and 105 of the Municipalities Law 111/1985. The requirement to pay annual
On 18 December 2019 the Registrar of Companies of Cyprus has announced that the date of entry into force of amendment of Companies Law Cap. 113 (Law 149(I)/2018) which establishes penalties for late filing of notifications of company’s particular corporate procedures and returns with the Registrar has been changed from 18 December 2019 to 18
In 2019 Cypriot taxpayers (including companies and individuals resident in Cyprus) must declare their incomes and pay taxes within the following deadlines: Deadline Taxpayer’s duties End of each month Payment of tax withheld from salary (PAYE, “pay-as-you-earn”) during the previous month. Payment of Social Insurance and General Healthcare Contributions from salaries of the previous month.
Being a regulatory authority in the sphere of banking and other financial activity in this jurisdiction, Central Bank of Cyprus has issued the Directive on prevention of money laundering and terrorist financing in February 2019. The main feature of this document is full prohibition of credit institutions’ cooperation with organizations that meet criterions of shell
The Central Bank of Cyprus has issued a new Circular Letter dated 2 November 2018 concerning shell companies, also known as “paper companies” or “mailbox companies”. It is addressed to money laundering compliance officers of all credit, payment and e-money institutions. In summer 2018 the Cypriot Central Bank had already sent a similar circular, where
On 14 June 2018 the Central Bank of Cyprus has sent a Circular Letter to all financial institutions of this jurisdiction with requirement to restrict servicing of so called shell companies and letterbox companies. This Circular Letter defines shell companies and letterbox companies by establishing 4 criteria, meeting at least one of which will allow
As is known, the corporate income tax rate in Cyprus is 12.5%. At the same time the law provides a special tax regime for income from intellectual property (hereinafter – IP), which allows 80% deduction from profit received by a Cypriot company from use or disposal of an IP asset. In this case the effective
The Institute of Certified Public Accountants of Cyprus (ICPAC) has given the following recommendations to Cyprus administrative service providers. Cyprus companies are not recommended (however, not prohibited) to issue general powers of attorney. Otherwise, the company may be not recognized as Cyprus tax resident and may consequently be unable to obtain a tax residency certificate.