A recent ruling in the Court of Justice of the European Union (CJEU) has clarified that, irrespective of whether the sickness commenced before or during the period of scheduled annual leave, an employee whose illness coincides with their annual leave is entitled to rearrange their annual leave to a later date. In Asociación Nacional de…
Cyprus parliament has approved a range of tax amendments. These amendmentds form part of a package of measures to improve the attractiveness of Cyprus to foreign investors and foreign businesses. The government hopes that these changes will maintain Cyprus, as the EU member state with the lowest tax rates, business friendly and open to further…
The Parental Leave and Leave on Grounds of Force Majeure Law, Law 47(I)/2012, came into force on the 18.05.2012 and repealed and replaced the previous legislation regarding parental leave and force majeure in Cyrpus. It was enacted for the purposes of harmonising Cyprus law with Council Directive 2010/18/EC on the revised framework agreement on parental…
Cyprus has concluded numerous Double Tax Agreements whilst certain other agreements are pending enforcement. The main purpose of these treaties is the avoidance of double taxation on income earned in any of these countries. Under these agreements, a credit is usually allowed against the tax levied by the country in which the taxpayer resides for…
The Cyprus Limitation of Actions Law, Cap 15, sets out the time limits within which claims must be brought before a court. The Law was suspended following inter-communal disturbances in 1964 and has remained suspended ever since. Law 159(I)/2011, which was enacted on the 09.12.2011, now provides that the suspension of limitation will cease on…
Cyprus Parliament has enacted legislation providing for the partial write-off of interest and penalties on overdue tax, provided that the balance is settled by the 31 March 2012. The newly enacted legislation applies to individuals and companies alike and affords a waiver of interest and penalties in excess of 5% of the principal amount owed.…
The Cyprus Parliament unanimously passed a bill on the 3.11.2011 suspending the payment of property transfer fees on properties subject to VAT for a period of 6 months. The bill also provided that the property transfer fee for purchases not subject to VAT will be reduced by 50% of the current level for the same…
A 35% income tax rate has been introduced for taxable income in excess of €60,000. The tax bands and rates are therefore now as follows: ChargeableIncomeEUR € TaxRates% TaxAmountEUR € CumulativeTaxEUR € 0-19.500 0 _ _ 19.501-28.000 20 1.700 1.700 28.001-36.300 25 2.075 3.775 36.301 – €60,000 30 7.110 10.885 over €60,001 35 …
On the 26 August 2011 the House of Representatives approved legislation aimed at stimulating the local property market. The legislation passed provides that eligible persons will be subject to a lower VAT rate of 5% on the purchase or construction of a first residence. The rate will apply for the first 200 square meters of…
On 14.12.2010, following a consultation process, the European Commission published a draft revised (recast) Brussels Regulation. The key areas addressed in the Commission’s legislative proposal are as follows: New rules concerning third state (non-EU) matters and defendants The Brussels Regulation provides jurisdiction rules mainly with respect to defendants domiciled in the EU Member States. The Commission proposes to extend…