Removal of Palau from EU list of non-cooperative tax jurisdictions

On 2 October 2018 the committee of European Union finance ministers agreed to remove the Pacific island of Palau from the EU list of non-cooperative tax jurisdictions not meeting required standards of transparency and good practice. When it was issued in December 2017 the EU blacklist included 17 jurisdictions, but several have been removed after […]

Entry into force of the new double taxation agreement between Cyprus and the United Kingdom

The new double taxation agreement between Cyprus and the United Kingdom entered into force on 18 July 2018 following completion of the requisite ratification procedures. The provisions of Article 25 (Mutual Agreement Procedure) and Article 26 (Exchange of Information) took effect immediately from 18 July 2018, without regard to the taxable year or chargeable period […]

Countdown to the Limassol Economic Forum

The Limassol Economic Forum will take place on Friday, 19 October at the Four Seasons Hotel in Limassol. As in previous years, Elias Neocleous & Co LLC will be a principal sponsor of the event. Now in its ninth year, the forum is the biggest and most important business gathering in Cyprus, and has become […]

New quarterly reporting requirements for funds management companies and self-managed funds

Circular C281 issued by the Cyprus Securities and Exchange Commission (CySEC) on 25 September 2018 sets out new reporting dates and additional statistical information required by CySEC for compilation of its quarterly statistics relating to management companies and self-managed funds. The new arrangements apply to all Alternative Investment Fund Managers, UCITS Management Companies, Self-Managed UCITS, […]

Reduction of non-performing loans in the Cyprus banking sector

On 14 September the Central Bank of Cyprus (CBC) published its latest analysis of data on non-performing loans in the Cyprus banking sector, covering the period to 31 May 2018, showing aggregate non-performing facilities (NPFs) and related indicators for the domestic operations of credit institutions operating in Cyprus. Overseas operations are excluded. During the month […]

Submission of 2017 tax returns

The Cyprus Tax Department has issued a further reminder that 31 October 2018 is the last date for submission of tax returns for 2017 by employees and self-employed persons with an annual turnover below € 70,000 and payment of any tax due by self-assessment. Returns may only submitted online via the department’s TAXISnet portal. Up […]

Taxation of earnings of insurance agents

The Cyprus Tax Department has issued a new circular (EE26, dated 7 September 2018)  clarifying the taxation of earnings of insurance agents. A representative of an insurance company who is not in an employment relationship with the company is treated as a commercial enterprise whose revenue is derived from fees or commissions for the conclusion […]

Tax treatment of non-returnable capital contributions

The Cyprus Tax Department’s Interpretative Circular EE 25 dated 3 September 2018 clarifies the tax treatment of non-returnable capital contributions by Cyprus taxpayers to companies which are tax-resident abroad. Article 33 of the Income Tax Law N.118 (I)/2002 allows the tax authorities to adjust transactions between related entities onto an arm’s length basis and assess […]