On 4 July 2013, the Ukrainian parliament ratified the new Double Taxation Treaty between the Ukrainian and Cyprus government. The ratified treaty aims at further strengthening the business relations between Cyprus and Ukraine and will replace the old bilateral agreement dating from 1982. The new treaty is based on the general principles of the Organisation…
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…
On 8.11.2012 the Government of Ukraine and the Government of the Republic of Cyprus signed a new convention for the avoidance of double taxation (the “Convention”). The draft of the Convention was approved by the Cabinet of Ministers of Ukraine in November 2012 and on 16.05.2013 a draft law was submitted for ratification by the…
Following the amendment of the Immovable Property Tax Law (No. 24/1980) on the 30.04.2013 by Law 33/2013 , all owners of property in Cyprus are now liable to pay an annual tax to the Inland Revenue based on their aggregate property holdings as of the 1st of January each year, on the basis of the…
As part of the agreement concluded with the European Stability Mechanism and the International Monetary Fund for financial assistance, the Cypriot House of Representatives approved a number of tax law amendments on the 18th of April 2013. The numerous advantages which Cyprus holding have over competing jurisdictions, such as the tax free flow of dividends…
Following the enactment of Law 167(I)/2012 by the House of Parliament on the 6.12.2012, the standard rate of VAT in Cyprus increased from 17% to 18% from the 14.01.2013. As of the 13.01.2014 the standard VAT rate will again increase to 19%. With regards to reduced rate VAT, this will increase from 01.01.2014 from the…
On the 6.12.2012, the House of Representatives passed legislation (Law.167(I)/2012) increasing VAT rates in Cyprus. In accordance with the new law: (a) from the 14.01.2013 until the 12.01.2014, the standard VAT rate increases to 18%; (b) from the 13.01.2014 the standard VAT rate will be 19%; (c) from 01.01.2014 the reduced VAT rate of 8%…
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…
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…
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.…