A Cyprus company limited by shares or guarantee and having a share capital, may, if so authorized by its articles of association, reduce its share capital (Section 64 of the Companies Law, Cap 113). In order for a Cyprus company to reduce its share capital: (a) a special resolution must be passed in general meeting…
Cyprus Companies Law, Cap 113 implemented Directive 2005/56/EC on cross-border mergers of limited liability companies (Cross-border Mergers Directive). Cyprus company provides the framework for cross-border mergers to occur between companies in Cyprus and companies from other EEA states.
Mergers result in the transfer of the assets and liabilities of one company to another and the dissolution of the first company without it going into liquidation. A merger between Cyprus companies is defined by section 30 of the Income Tax Law (Law 118(I)/2002).
The ECJ decided that a worker must be able to carry over and accumulate rights to paid annual leave when an employer does not put that worker in a position in which he is able to exercise his right to paid annual leave.
Strike-off procedure – A Cyprus Company may be struck off the Register either by a request of the directors or shareholders or involuntarily by the Registrar of Companies.
The legislation and procedure relating to winding up of legal entities is set out in the Companies Law, Cap.113 (the “Law”). Under section 203 of the Law the two main types of winding up procedure are voluntary liquidation and liquidation by the court. A. Voluntary Liquidation A Cyprus company may enter into a members’ or…
The Ministry of Finance announced the permanent reduction of transfer fees. The reduction was implemented by the enactment of the Land and Surveys Department (Fees and Rights) (Amendment) (No 2) Law of the 14.07.2016. Consequently the temporary arrangement which provided a reduction of 50 per cent of transfer fees until 31.12.2016 is now made permanent. According to…
The House of Representatives passed legislation regulating the provision of leasing services. The legislation has affect as of the 28.04.2016. The new legislation provides that, with limited exceptions, businesses providing leasing services must be authorised to provide such services. Businesses which: (a) do not deal with the public; or (b) whose principal business activity is…
Advance tax rulings can be valuable to taxpayers since they provide comfort on how the tax framework applies to a particular transaction. In October 2015 the Tax Department issued a circular setting out a new procedure for obtaining advance tax rulings. Following this, on the 26.04.2016, the Tax Department announced that administrative fees will now…
In order to facilitate and encourage the restructuring of non-performing loans the Cyprus tax laws were amended to temporarily exempt loan restructurings from tax. The amendments are applicable up to 31.12.2017. The amending legislation was published in the Cyprus Government Gazette on 31.12.2015. The amendments affect the Income Tax Law; the Capital Gains Tax Law;…