All posts by Kypros Kyprianou

Kypros Kyprianou is a PKF Nicosia Cyprus based partner, being in charge of a portfolio of international and Cyprus companies, including large entities. Engaged in issues of International Cyprus Companies economic substance and structuring activities internationally, having considered matters of economic substance and beneficial ownership and on shifting of tangible and intangible assets, on setting up of group head offices, having fully fledged offices, on how to continuously demonstrate economic substance, on proper allocation of group risks, on the choice between capitalizing a business enterprise with debt or equity, on finance companies and payments in respect of loans between foreign companies, on intellectual property rights (IP) and their registration and administration. Engaged in companies’ transfer in and redomiciliation across EU and Eastern countries. Engaged in reorganizations and cross – border mergers, engaged in company formation and provision of “shelf” or new companies (Cyprus Companies and International),engaged in Cyprus company administration including provision of nominee directors, nominee shareholders, setting up and administration of International Cyprus trusts and consulting on validity in case of transfer or disposition of movable or immovable property in to the trust including possible tax implications, assigning adequate powers to the protectors, settlors and beneficiaries, setting up of Cyprus Funds including administration i.e. processing applications for subscription or redemption of shares, maintaining investors Share Register, consulting on calculating and publishing the Net Asset Value etc.

Cyprus tax Guide 2017

PKF Cyprus Tax Guide provides comprehensive and up to date information to Cyprus Companies and Individuals on Cyprus tax system and on Cyprus Tax rates, such as personal income tax, corporate tax, capital gains tax, immovable property tax, VAT rates, immovable property transfer fees, etc. In addition PKF Cyprus Tax Guide can be a useful reference in general and Cyprus tax planning.

Click below to download full Cyprus tax guide – 2017

Cyprus tax guide – 2017

How to pay Cyprus Companies annual levy for 2017

According to Cyprus Company Law, we would like to remind you of Cyprus Companies’ obligation of €350 annual fixed levy for 2017.

Please be advised that the payment of €350 for 2017 is payable until 30th June 2017.

The settlement of the annual duty should ONLY be done through JCCSmart website through the following link:

https://www.jccsmart.com/

Please follow the instructions below for the payment through JCCSmart website.

Instructions for the payment of Cyprus Companies annual levy (2017) through JCCSmart website:

1) Click on the following link https://www.jccsmart.com/Account/LogOn?ReturnUrl=%2feBills%2fInvoice%2fIndex%2f894

2) If you retain an account with JCCSmart please skip steps 3 and 4 and move to step 5. If not, please follow steps 3 and 4 to create one.

3) Click on the link ‘NEW CLIENT’ and input all required data in the fields provided and click the link ‘REGISTER’ – your account has been created.

4) Then repeat the procedure from step 1 by clicking on the following link: https://www.jccsmart.com/Account/LogOn?ReturnUrl=%2feBills%2fInvoice%2fIndex%2f894

5) Input your email address and the password to be log in the system.

6) Then input company’s number with latin characters (i.e. ΗΕ11111).

7) Then input your card’s details according to the required fields for the completion of the transaction.

For more information please contact our offices on  [email protected]

April 2017

The authors expressly disclaim all and any liability and responsibility to any person, entity or corporation who acts or fails to act as a consequence of any reliance upon the whole or any part of the contents of this document. Accordingly no person, entity or corporation should act or rely upon any matter or information as contained or implied within this publication without first obtaining advice from an appropriately qualified professional person or firm of advisors

PKF / ATCO Limited is a member firm of the PKF International Limited network of legally independent firms and does not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms. This publication is for information purposes only and should not be considered as professional advice.

Cyprus Stock Exchange approves PKF Cyprus Nicosia office

We are glad to announce that the Cyprus Stock Exchange has approved    PKF / ATCO Limited (PKF Cyprus Nicosia office) as Nominated Advisors in the Exchange’s Emerging Companies Market (E.C.M.).

Namely, the partners of the firm, Mr. George Koukoumas and Mr. Kypros Kyprianou have been successfully nominated to act in this capacity.

Nominated Advisor (NOMAD) 
The Nominated Advisor advices issuers in respect of their compliance with the rules and regulations of the Emerging Companies Market (E.C.M.).

Specially the Nominated Advisor:
(a) Evaluates and presents issuers to the Cyprus Stock Exchange ensuring that the listing requirements are fulfilled.
(b) Represents the issuers through the listing procedure.
(c) Advices issuers in respect of the compliance of the continuous obligations:
1.    Monitors and assists the issuer according to the rules and regulations of the E.C.M in fulfilling their obligations. 
2.    Advices the issuer in respect of its obligations and takes any appropriate measures for the fulfillment of these obligations. 
3.    If the issuer does not comply with its obligations, the nominated advisor takes any necessary actions in order to remedy any failure while informing the CSE  on the nature of the failure and the measures that the issuer has taken on.

For further information please contact::

George Koukoumas
[email protected]

Kypros Kyprianou
[email protected]

Our Offices
[email protected]
Tel No.: +357 22 462727

Deletion of Cyprus companies from the Cyprus Registrar of Companies for non – payment of annual levy

The Cyprus Registrar of Companies announced that on March 31, 2017 will proceed to delete the companies in accordance with Article 327 (2A) (b) of the Companies Law, Cap. 113, which they have not paid the annual fee (Article 391 of the Companies Law Cap. 113) within one year from the date it should be paid.

In particular, companies that have not paid their annual fee for the years 2012, 2013, 2014 and / or 2015, will be published in the Official Gazette of the Republic for a period of three months, in accordance with Article 327 (2A) (b) of the Law, and then will be deleted from the registry

 

PKF / ATCO Limited is a member firm of the PKF International Limited network of legally independent firms and does not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms. This publication is for information purposes only and should not be considered as professional advice

 

New Cyprus taxation incentives to boost Cyprus start-up businesses

Cyprus government has approved new taxation incentives to boost and support Cyprus start-up businesses. These are practices which have been followed by other governments which they aim to boost and support the start–up sector.

The Cyprus incentives will grant to Cyprus start-up businesses tax exemptions of up to 50% with a maximum annual amount of €150,000

The Cyprus tax exemption on start – up businesses, will be granted to individuals who invest in innovative activities directly or through investment funds. The investment on Cyprus start – up businesses can take the form of shares, loans, or provision of guarantees. A Cyprus innovative business activity means a business which spends 10% of its operating expenses on research and development in at least one of the last three years. This should be verifiable by an external auditor. Cyprus start – up business activities should be verifiable by the provision of a business plan.

The definition of innovative activities will not only consider research and development but will also cover existing and young Cyprus businesses which have innovative ideas that can be turned into commercial products.

Cyprus taxation Incentives will come into force after approved by the Cyprus parliament

Contact details

[email protected]

 

July 2016 

PKF / ATCO Limited is a member firm of the PKF International Limited network of legally independent firms and does not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms. This publication is for information purposes only and should not be considered as professional advice.

Cyprus Immovable Property Tax cuts

The Cyprus Parliament passed legislation on reduction of Cyprus Immovable Property Tax for the year 2016 onward.

The tax base will be that of year 2015 but the resulting tax will be reduced to 25% for those who will pay their Cyprus Immovable property tax until 31 October 2016.

If the resulting Cyprus Immovable Property Tax is paid between 1 November and 31 December 2016, the reduction will be at 27.5%.

If the resulting Cyprus Immovable Property Tax is paid after 31 December 2016, there will be an additional charge of 10% of the tax due, plus interest and any administrative fines provided for in the legislation.

The legislation also provides the abolition of the Cyprus Immovable Property Tax from 1 January 2017 onward.

Contact details

[email protected]

 

July 2016 

PKF / ATCO Limited is a member firm of the PKF International Limited network of legally independent firms and does not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms. This publication is for information purposes only and should not be considered as professional advice.

Cyprus – India revised double tax treaty concluded successfully

 

A revised Cyprus – India double taxation treaty was successfully concluded and signed by both countries on 18th November 2016. The agreement is similar to that of Mauritius which entitles the Indian tax authorities to tax capital gains from investments going through Cyprus. The new Cyprus – India double tax treaty provides for a sourced-based taxation on profits from sale of shares. Indian authorities will have the right to tax capital gains from the sale of shares after April 1, 2017. Investments made prior to April 1, 2017 are exempt in the sense that taxing disposal of these shares at any future date remains with the Contracting State of residence of the seller

It is expected that the new Cyprus – Indian Double Taxation treaty will further develop the economic relationship between India and Cyprus. It is also expected that the new Cyprus, Indian double taxation treaty will make Cyprus even more attractive to foreign investments

Contact details

[email protected]

 

July 2016 

PKF / ATCO Limited is a member firm of the PKF International Limited network of legally independent firms and does not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms. This publication is for information purposes only and should not be considered as professional advice.

Cyprus companies provisional tax payment – year 2016

Cyprus companies provisional tax payment – year 2016

Cyprus companies are obliged to submit a provisional tax computation of their Cyprus taxable income and Cyprus tax due for the tax year 2016 by 31st July 2016.

The Cyprus tax payable based on the Cyprus taxable income is payable in two equal installments, before or at the following dates:

–          31 July 2016

–          31 December 2016

If any of the installments remain unpaid up to the due dates, 5% penalty is imposed from the due dates of payment plus annual interest in accordance with current government – public interest rate.

The computation to the taxable income can be adjusted prior 31 December 2016. If as a result of the adjustment the tax payable is increased, then the difference between the amount of adjusted installments and the initial installments bears interest from the due dates of each installment.

How can we help

We can help you to calculate and submit your Cyprus Company taxable income and pay your Cyprus tax on or before 31 July 2016 and 31 December 2016. For more information please contact our offices: [email protected]

 

June 2016 

PKF / ATCO Limited is a member firm of the PKF International Limited network of legally independent firms and does not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms. This publication is for information purposes only and should not be considered as professional advice.

 

How to pay Cyprus Companies annual levy for 2016

According to Cyprus Company Law, we would like to remind you of Cyprus Companies’ obligation of €350 annual fixed levy for 2016.

Please be advised that the payment of €350 for 2016 is payable until 30th June 2016.

The settlement of the annual duty should ONLY be done through JCCSmart website through the following link:

https://www.jccsmart.com/

Please follow the instructions below for the payment through JCCSmart website.

Instructions for the payment of Cyprus Companies annual levy (2015) through JCCSmart website:

1) Click on the following link https://www.jccsmart.com/Account/LogOn?ReturnUrl=%2feBills%2fInvoice%2fIndex%2f894

2) If you retain an account with JCCSmart please skip steps 3 and 4 and move to step 5. If not, please follow steps 3 and 4 to create one.

3) Click on the link ‘NEW CLIENT’ and input all required data in the fields provided and click the link ‘REGISTER’ – your account has been created.

4) Then repeat the procedure from step 1 by clicking on the following link: https://www.jccsmart.com/Account/LogOn?ReturnUrl=%2feBills%2fInvoice%2fIndex%2f894

5) Input your email address and the password to be log in the system.

6) Then input company’s number with latin characters (i.e. ΗΕ11111).

7) Then input your card’s details according to the required fields for the completion of the transaction.

For more information please contact our offices on  [email protected]

May 2016

 

PKF / ATCO Limited is a member firm of the PKF International Limited network of legally independent firms and does not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms. This publication is for information purposes only and should not be considered as professional advice.

Further extension period granted by the Cyprus registrar of Companies for companies that have not complied with the Law

Please note that the Cyprus Registrar of Companies has granted a further extension until October 31, 2016 to companies that have filed an objection for deletion / de-registration until 9 November 2015. 

According to the Cyprus Company Law Cap. 113 Cyprus Companies have to comply by submitting each year their annual returns together with the related financial statements.

Please contact us to share related issues that concern you. All information is treated in strict confidence.

Contact details

Tel. +357 22 462727
Email: [email protected]

 

(Published: Mar. 2015) 

PKF / ATCO Limited is a member firm of the PKF International Limited network of legally independent firms and does not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms. This publication is for information purposes only and should not be considered as professional advice.

Cyprus Companies Deemed Dividend Distribution – 2015

Cyprus Companies should be aware of the deemed distribution provisions of the Special Contribution for the Defence Law on profits and dividends.

In accordance with the Cyprus Tax Law, Cyprus Companies are deemed to have distribute in the form of dividends, 70% of their accounting profits after deducting the Cyprus taxes, from the end of the second year of the year when the profits has been related. Special contribution for defence at 17% for the tax year 2015 will be payable on such deemed dividends to the extent that the shareholders (companies and individuals) are Cyprus tax residents. The amount of deemed distribution is reduced by any actual dividends paid out of the profits of the relevant year at any time. In this respect, profits of the year 2013 are subject to a deemed distribution on 31 December, 2015.This special contribution for defence is payable by a Cyprus Company on behalf of its shareholders.

Cyprus Companies which declare and pay special contribution for defence after the due dates, additional fines and penalties will be imposed.

For more information please contact our offices:
[email protected]

Tel.No. + 357 22 462727

 

PKF / ATCO Limited is a member firm of the PKF International Limited network of legally independent firms and does not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms. This publication is for information purposes only and should not be considered as professional advice.

Cyprus Company’s temporary tax assessment – December 2015

Revision of Cyprus Company’s temporary tax assessment and second installment payment in relation to the year 2015

Cyprus companies have to pay the second installment of their provisional tax declared to the Cyprus Tax Department earlier this year.
According to the Cyprus Income Tax Law, Cyprus companies had the obligation to submit a temporary tax assessment / estimation of their 2015 chargeable income.
The temporary tax assessment / estimation is payable in two equal installments, before or at the following dates:
–   31 July 2015
–   31 December 2015
A 10% surcharge is imposed on the difference between the tax as finally determined in the relevant annual report (financial statements) and the temporary tax assessment / estimation when the temporary assessment / estimation is less than the 75% of the chargeable income. Revised tax assessment / estimations can be submitted at the Cyprus Tax department on or before 31 December 2015.
Cyprus Companies which pay their taxes after the due dates interest is imposed.
If in according to the company’s estimates there is no taxable income or any tax due, the Cyprus Company is not required to make a declaration.

For more information please contact our offices:

[email protected]

Tel.No. + 357 22 462727

 

PKF / ATCO Limited is a member firm of the PKF International Limited network of legally independent firms and does not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms. This publication is for information purposes only and should not be considered as professional advice.

Extension period granted by the Cyprus registrar of Companies

Please note that the Cyprus Registrar of Companies has granted an extension until March 31, 2016 to companies that have filed an objection for deletion / de-registration until 9 November 2015

Please be advised that the Cyprus Registrar of Companies published in the Cyprus Official Gazette the companies which will be de-registered for not submitting their annual returns together with the related financial statements as required by the relevant legislation.

The relevant companies can be found at the following links:

Cyprus Companies to be deleted by the Cyprus Registrar of Companies Cyprus Official Gazette 4859 dated 8 5 2015

Cyprus Companies to be deleted by the Cyprus Registrar of Companies Cyprus Official Gazette 4878 dated 17 7 2015

Cyprus Companies to be deleted by the Cyprus Registrar of Companies Cyprus Official Gazette 4880 dated 24 7 2015

Cyprus Companies to be deleted by the Cyprus Registrar of Companies Cyprus Official Gazette 4883 dated 31 7 2015

Cyprus Companies to be deleted by the Cyprus Registrar of Companies Cyprus Official Gazette 4885 dated 7 8 2015

Please contact us to share related issues that concern you. All information is treated in strict confidence.

Contact details

Tel. +357 22 462727
Email: [email protected]

 

(Published: Nov. 2015) 

PKF / ATCO Limited is a member firm of the PKF International Limited network of legally independent firms and does not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms. This publication is for information purposes only and should not be considered as professional advice.

Cyprus Companies deregistered

Cyprus Companies not complying with the Cyprus Registrar of Companies  – List of companies to be deregistered

Please be advised that the Cyprus Registrar of Companies published in the Cyprus Official Gazette the companies which will be deregistered on November 7, 2015 for not submitting their annual returns together with the related financial statements as required by the relevant legislation.

The relevant companies can be found at the following links:

Cyprus Official Gazette: Date: 17/07/2015
Cyprus Official Gazette: Date: 24/07/2015
Cyprus Official Gazette: Date: 31/07/2015
Cyprus Official Gazette: Date: 07/08/2015

If you wish to file an objection for non-deletion please contact at:

Fax .: 22304887 or 22404387
email: [email protected]

 

 

Εταιρείες οι οποίες δεν συμμορφώνονται με τις απαιτήσεις του Εφόρου Εταιρειών – Κατάσταση εταιρειών που πρόκειται να διαγραφούν

Σας ενημερώνουμε ότι o Έφορος Εταιρειών της Κύπρου έχει δημοσιεύσει στην Επίσημη Εφημερίδα της Κύπρου τις εταιρείες οι οποίες πρόκειται να διαγραφούν στις 7 Νοεμβρίου 2015 επειδή οι εταιρείες αυτές δεν έχουν καταθέσει τις ετήσιες τους εκθέσεις μαζί με τις σχετικές οικονομικές καταστάσεις όπως προβλέπεται από την σχετική νομοθεσία.

Οι εταιρείες αυτές φαίνονται στους πιο κάτω συνδέσμους:

Εφημερίδα:
Ημερομηνίας: 17/07/2015
Εφημερίδα:
Ημερομηνίας: 24/07/2015
Εφημερίδα:
Ημερομηνίας: 31/07/2015
Εφημερίδα:
Ημερομηνίας 07/08/2015

Στην περίπτωση που επιθυμείτε να υποβάλλετε ένσταση για μη διαγραφή παρακαλούμε όπως επικοινωνήσετε στο:

φαξ.: 22304887 ή 22404387
ηλεκτρονικό ταχυδρομείο: [email protected]

 

 PKF / ATCO Limited is a member firm of the PKF International Limited network of legally independent firms and does not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms. This publication is for information purposes only and should not be considered as professional advice.

Cyprus Immovable Property tax payment guidance – 2015

Cyprus immovable Property Tax for the year 2015 is due for payment until 31st of December this year.

The Cyprus Immovable Property Tax is based on the total market value at 1st January 1980.

Cyprus property owners tax liability arises if on 1st January 2015:

     +   Cyprus immovable property was registered in their name or

     +   Cyprus immovable property was acquired by sale or by any other method but it was not registered in their name or

     +   Cyprus immovable property lease contract was registered with the Department of Lands and Surveys in their name

and total market value as at 1st January 1980, exceeds the amount of € 12 500.

If the resulting Cyprus Immovable Property tax is paid until 1st December 2015 then their will be a discount as follows:

     +   20% on the outstanding amount for online payments through www.jccsmart.com.cy website and through banks and cooperatives

     +   17.5% for payments through District Collection Tax Offices.
If the resulting Cyprus Immovable Property tax is paid after 31 December 2015, there will be an additional charge of 10% of the tax due, plus interest and any administrative fines provided for in the legislation.

New buyers of Cyprus Immovable Property should go to the District Offices of the Department of Inland Revenue (Immovable Property Department) to settle these issues. 

Note:

Taxpayers wishing to pay via the website www.jccsmart.com, they must enter the No. JCCSmart indicated on the Immovable property tax notice and pay using their credit card. Taxpayers wishing to pay via Cyprus banks should have with them the Immovable Property Tax assessment, their Identity Card and the tax amount in cash or their credit card.

For more information please click on Cyprus Immovable Property Tax or on Cyprus Immovable Property Tax Rates

 

How can we help
We can help you fulfill the tax obligations of your Cyprus Immovable Property with the Inland Revenue Department.
Please contact our offices:
+357 22462727 or
[email protected]

Last update: October 2015

PKF / ATCO Limited is a member firm of the PKF International Limited network of legally independent firms and does not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms. This publication is for information purposes only and should not be considered as professional advice.

CYPRUS Tax reforms – more detailed – August 2015

Cyprus now is in the position to enhance its foreign direct investments and encourage non-domiciled individuals to move to Cyprus. The Cyprus tax reforms will now enhance Cyprus taxation advantages and will make the island as “attractive and competitive” as ever before.
 
The major Cyprus Tax Reforms that finally have been passed by The Cyprus House of Representatives are:

1.      New equity and notional interest deduction for Cyprus Companies

The new equity and notional interest deduction will allow new funding in Cyprus in the form of equity. This will mean a reduction of the overall effective tax rate of a Cyprus Company depending on the level of Cyprus Company capitalization. The notional Interest deduction (NID) will be granted annually.

Equity. New equity can be introduced either in the form of cash or in kind. Where new equity will be introduced in the form of assets in kind, the sum of these may not exceed the market value. Assets must be fully documented. Notional interest deduction (NID) will be given on new capital (share capital and share premium account to the extent that they have been paid) issued from 1st January 2015.

 Interest. Notional interest deduction (NID) will be calculated on the amount of new share capital / share premium the same way as with interest on loans. The rate of notional interest deduction (NID) is defined as the 10 year government bond yield (at December 31 of the year preceding the tax year) of the country in which the new equity is invested, increased by 3% and having as a lower limit the 10 year Cyprus government bond increased by 3%.

Notional interest deduction (NID) is deducted from taxable income but it cannot exceed 80% of taxable income (as defined for tax purposes) before deducting Notional interest deduction (NID). 

The notional interest deduction (NID) applies to companies that are tax residents of Cyprus and to companies which are not resident in Cyprus but have a permanent establishment in Cyprus.

The above will be applicable retrospectively as from 1 January 2015.

2.      Tax exemptions for High-net worth non-domiciled individuals moving to Cyprus

The introduction of “Domicile” regime aims to exempt High-net worth non-domiciled individuals moving to Cyprus from Special Contribution for Defense. High-net worth non-domiciled individuals (non-doms) will need to declare Cyprus as their taxable jurisdiction and receive an exemption from Special Contribution for Defense on rents (3% on 75% on rent income), interest (30%)  and dividends (17%) which are applicable to Cyprus domiciled individuals. High-net worth non-domiciled individuals even though may be tax resident in Cyprus they will not be domiciled or deemed to be domiciled in Cyprus for tax purposes and therefore they will not be subject to Special Contribution for Defence.

“Domiciled in Cyprus” is defined in accordance with the Cyprus Wills and Succession Law. Domiciled in Cyprus is an individual who has a Domicile of Origin in Cyprus but it does not include:

  • An individual who has his domicile of origin in Cyprus, in accordance with the provisions of the Cyprus Wills and Succession Law, but has acquired and maintains domicile of choice in a country other than Cyprus, provided that he was not Cyprus tax resident for any period of at least 20 consecutive years before the relevant tax year which he is tax resident of Cyprus (and thus normally be subject to special defense contribution).
  • An individual who has retained his domiciled of origin in Cyprus, but he was not a tax resident in Cyprus for at least 20 consecutive years before this law came into force.

Regardless of domicile, if any individual is tax resident in Cyprus for at least 17 of the last 20 years prior the fiscal year under review, will be deemed as domiciled in Cyprus and consequently will not be able to benefit from the exemption payment of special defense contribution.

Considering this amendment, individuals who currently don’t have their domicile in Cyprus but were tax resident in Cyprus and thus paid special defense contribution on dividends, interest and rent, as from 16 July 2015 they will not pay any special defense contribution if they meet the limitation of 17 years.

The above amendment is in force as from 16 July 2015. Accordingly, dividends, interest and rent received or credited before the above date will be subject to special defense contribution.

A person is considered to be a tax resident of Cyprus if it is in Cyprus for at least 184 days a year.

3.      Cyprus Capital Gains Tax Exemption on Cyprus immovable property

There will be no capital gains tax for sale of immovable property in Cyprus purchased from the date the law comes into effect until 31 December 2016. The exemption shall not apply where property is sold under the new foreclosure law.

Currently Cyprus Capital gains tax is levied on gains from the disposal of Cyprus property (immovable) at the rate of 20%, as well as gains from the disposal of shares in Cyprus companies owning immovable property and are not listed in any recognised stock exchange and rights arising from a sales agreement of immovable property situated in Cyprus. For more information on Cyprus current Capital Gains Tax please click here

4.      Reduction of Cyprus property transfer fees by 50%

The Cyprus tax reforms in order to encourage the Cyprus immovable property sector, Cyprus property transfer fees have been reduced by 50% until 31 December 2016. The reduction shall not apply where property is transferred under the new foreclosure law.

Cyprus property transfer fees that are currently applicable on immovable property are based on the market value of the property according to the Cyprus Land Registry Office. Click here for more information on Cyprus transfer fees rates

 

The following are expected to pass into law in the near future 

1.      Tax exemptions for executives moving to Cyprus

A 50% allowance will be given on employment income prior to executive employment in Cyprus, where income is above €100,000. The exemption will be given for ten years. Currently the law provides for five years. For more information on current exemptions in Cyprus please click here

2.      Further extension period on Increased Capital Allowances for Machinery and Buildings acquired by Cyprus Companies and Cyprus businesses

The new Cyprus tax reforms include a further extension period on Increased Capital Allowances for machinery and Buildings acquired by Cyprus Companies and Cyprus businesses until 31 December 2016. Currently machinery and buildings acquired during the years 2012, 2013 and 2014 are eligible to tax depreciation at the rate of 20% (excluding such assets which are already eligible for a higher annual tax rate of tax depreciation). For more information on current applicable law please click here

3.     New Cyprus property tax law (New Cyprus immovable property tax law)

The new Cyprus immovable property tax law will be based on the latest General Valuation immovable property values (currently as at 31 December 2013) multiplied by a single tax rate of 0.1%. Currently Cyprus property tax (Cyprus Immovable property tax) is calculated on the market value of the Cyprus property as at the 1st of January 1980 multiplied by applicable Cyprus property tax rates and applies to immovable property owned by taxpayers at the 1st of January each year and is payable on the 30th of September of the same year. Please click here for more information on current Cyprus property tax rates and current Cyprus property tax law

How we can help

–   We can help you to move to Cyprus and obtain Cyprus tax relocation advantages.

–   We can review your corporate structure (holdingfinancing and trading) and propose changes to your structure taking into account the Cyprus  current Tax Reform.

– We can advise you on  your proposed or existing immovable property in Cyprus based on Cyprus current Tax Reform

Contact us

Please contact us for a free personal consultation. All information will be treated in the strictest confidence. We are happy to sign Non Disclosure Agreement (NDA) or any other legal safeguards. 

July 2015

 

The authors expressly disclaim all and any liability and responsibility to any person, entity or corporation who acts or fails to act as a consequence of any reliance upon the whole or any part of the contents of this website.

Accordingly no person, entity or corporation should act or rely upon any matter or information as contained or implied within this publication without first obtaining advice from an appropriately qualified professional person or firm of advisors, and ensuring that such advice specifically relates to their particular circumstances.

PKF Cyprus firms are member firms of the PKF International Limited network of legally independent firms and do not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms.”

Cyprus Companies’ annual levy payment for the year 2015 postponed until 31 July 2015

Pleased be advised that the Cyprus Companies’ annual levy payment of €350 for the year 2015 is now postponed until 31 July 2015.

As explained in one of our previous announcements, the settlement of the annual levy should ONLY be done through JCCSmart website through the following link:

https://www.jccsmart.com/

Please follow the instructions below for the payment through JCCSmart website.

Instructions for the payment of Cyprus Companies annual levy (2015) through JCCSmart website:

1) Click on the following link https://www.jccsmart.com/Account/LogOn?ReturnUrl=%2feBills%2fInvoice%2fIndex%2f894

2) If you retain an account with JCCSmart please skip steps 3 and 4 and move to step 5. If not, please follow steps 3 and 4 to create one.

3) Click on the link ‘NEW CLIENT’ and input all required data in the fields provided and click the link ‘REGISTER’ – your account has been created.

4) Then repeat the procedure from step 1 by clicking on the following link: https://www.jccsmart.com/Account/LogOn?ReturnUrl=%2feBills%2fInvoice%2fIndex%2f894

5) Input your email address and the password to be log in the system.

6) Then input company’s number with latin characters (i.e. ΗΕ11111).

7) Then input your card’s details according to the required fields for the completion of the transaction.

For more information please contact our offices:

[email protected]

July 2015

 

PKF / ATCO Limited is a member firm of the PKF International Limited network of legally independent firms and does not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms. This publication is for information purposes only and should not be considered as professional advice.

New Cyprus Tax Bill expected to pass in 2015

Recently there have been new developments in the Cyprus tax legislation. A new law “domicile law” is now prepared which is similar to that of the UK and is expected to pass as a new law during the year 2015. The proposals under discussion relates to “non-domicile” individuals. Based on our understanding, individuals who are tax resident in Cyprus and also considered as “non-domiciled” in Cyprus would not be subject to special contribution for defense tax. In general, this would mean that the “non-domicile” individuals’ income from dividend and passive interest should not be subject to Cyprus taxation. However at present, we can not confirm the exact content and time frame for such proposals.

May 2015

 

PKF / ATCO Limited is a member firm of the PKF International Limited network of legally independent firms and does not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms. This publication is for information purposes only and should not be considered as professional advice.

How to pay Cyprus Companies annual levy for 2015

According to Cyprus Company Law, we would like to remind you of Cyprus Companies’ obligation of €350 annual fixed levy for 2015.

Please be advised that the payment of €350 for 2015 is payable until 30th June 2015.

The settlement of the annual duty should ONLY be done through JCCSmart website through the following link:

https://www.jccsmart.com/

Please follow the instructions below for the payment through JCCSmart website.

Instructions for the payment of Cyprus Companies annual levy (2015) through JCCSmart website:

1) Click on the following link https://www.jccsmart.com/Account/LogOn?ReturnUrl=%2feBills%2fInvoice%2fIndex%2f894

2) If you retain an account with JCCSmart please skip steps 3 and 4 and move to step 5. If not, please follow steps 3 and 4 to create one.

3) Click on the link ‘NEW CLIENT’ and input all required data in the fields provided and click the link ‘REGISTER’ – your account has been created.

4) Then repeat the procedure from step 1 by clicking on the following link: https://www.jccsmart.com/Account/LogOn?ReturnUrl=%2feBills%2fInvoice%2fIndex%2f894

5) Input your email address and the password to be log in the system.

6) Then input company’s number with latin characters (i.e. ΗΕ11111).

7) Then input your card’s details according to the required fields for the completion of the transaction.

For more information please contact our offices:

[email protected]

May 2015

 

PKF / ATCO Limited is a member firm of the PKF International Limited network of legally independent firms and does not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms. This publication is for information purposes only and should not be considered as professional advice.

Cyprus companies’ tax return for the year 2013 postponed

The Cyprus Tax Department, announces that the last submission date for the Tax Return for Cyprus Companies (I.R.4A) and the Tax Return for Self Employed (for those submitting accounts) (IR1A ACC), for the tax year 2013, is postponed until the 30th April 2015.

For more information please feel free to contact us on:

[email protected]

April 2015

 

PKF / ATCO Limited is a member firm of the PKF International Limited network of legally independent firms and does not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms. This publication is for information purposes only and should not be considered as professional advice.

Cyprus Companies not comply with the Cyprus Companies Law

The Cyprus Registrar of Companies announced a three-month extension (as from 8th of April 2015) for Cyprus companies that will demonstrate interest to comply with the submission with the Cyprus Registrar of Companies of their Annual Returns accompanied with the corresponding / relevant financial statements.

The Cyprus Registrar of Companies further announced that, after the period of three months has elapsed, if Cyprus companies are still not complying with the above, will continue the deregistration process in accordance with the provisions of Article 327 of the Companies Law, Cap. 113.

For any further information please feel free to contact us on:

[email protected]

 

 

PKF / ATCO Limited is a member firm of the PKF International Limited network of legally independent firms and does not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms. This publication is for information purposes only and should not be considered as professional advice.

Cyprus Companies Deemed Dividend Distribution – 2014

Cyprus Companies should be aware of the deemed distribution provisions of the Special Contribution for the Defence Law on profits and dividends.

In accordance with the Cyprus Tax Law, Cyprus Companies are deemed to have distribute in the form of dividends, 70% of their accounting profits after deducting the Cyprus corporation tax, from the end of the second year of the year when the profits has been related. Special contribution for defence at 17% for the tax year 2014 will be payable on such deemed dividends to the extent that the shareholders (companies and individuals) are Cyprus tax residents. The amount of deemed distribution is reduced by any actual dividends paid out of the profits of the relevant year at any time. In this respect, profits of the year 2012 are subject to a deemed distribution on 31 December, 2014.This special contribution for defence is payable by a Cyprus Company on behalf of its shareholders.

Cyprus Companies are therefore required to declare actual dividends or declare deemed distribution on their 2012 profits on or before 31 December 2014 and pay the relevant special defence contribution by 31 January 2015. Cyprus Companies which declare and pay special contribution for defence after the due dates, additional fines and penalties will be imposed.

How we can help

We can help you to declare actual dividends or declare deemed distribution and pay the relevant special defence contribution for your Company.

For more information please contact our offices:

[email protected]

December 2014

PKF / ATCO Limited is a member firm of the PKF International Limited network of legally independent firms and does not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms. This publication is for information purposes only and should not be considered as professional advice.

Cyprus Company’s temporary tax revision and second installment payment for the year 2014

Cyprus companies have to pay the second installment of their provisional tax declared to the Cyprus Tax Department earlier this year.

According to the Cyprus Income Tax Law, Cyprus companies had the obligation to submit a temporary tax assessment / estimation of their 2014 chargeable income and pay the first installment by 31st July 2014.

The temporary tax assessment / estimation is payable in two equal installments, before or at the following dates:

–   31 July 2014

–   31 December 2014

A 10% surcharge is imposed on the difference between the tax as finally determined in the relevant annual report (financial statements) and the temporary tax assessment / estimation when the temporary assessment / estimation is less than the 75% of the chargeable income as finally determined in the financial statements.

Revised tax assessment / estimations can be submitted at the Cyprus Tax department on or before 31 December 2014.

Cyprus Companies which pay their taxes after the due dates an additional 5% fine is imposed.

Cyprus Companies that do not estimate to have any taxable income or tax due have no obligation for the submission of the tax / assessment estimation form.

If in according to the company’s estimates there is no taxable income or any tax due, the Cyprus Company is not required to make a declaration.

How we can help

We can help you to revise your Cyprus Company temporary tax assessment and pay your Cyprus taxes. For more information please contact our offices:

[email protected]

December 2014

PKF / ATCO Limited is a member firm of the PKF International Limited network of legally independent firms and does not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms. This publication is for information purposes only and should not be considered as professional advice.

Is the Russian CFC legislation likely to affect Russians in investing abroad?

 

 What is Russian CFC legislation ?

Russian CFC legislation can be defined as the measures adopted by Russian government to promote transparency and to combat tax avoidance by Russian taxpayers using foreign company structures.

The measures

Russian Controlled Foreign Company (CFC) new rules: Main aspects

Russian shareholders will be required to pay taxes in Russia on the retained earnings of foreign companies in which they hold a controlling stake the same way as Russian Companies. Any tax already paid by foreign companies will be given as a tax credit. A Russian shareholder is considered to be a legal/physical person holding more than 25% (50% 2015) of shares in foreign company or more than 10% if together with affiliated persons hold more than 50%.

Exemptions form the Russian Controlled Foreign Company (CFC) new rules

There are a number of exemptions from the taxation of Russian Controlled Foreign Company (CFC) new rules:

–   On profits of up to 10 million RUB from 1 January 2017 (50 million RUB in 2015 and 30 million RUB from 2016).

–   Active foreign companies with more than 80% of active business income

–   Foreign companies controlled and managed by Russian residents which:

      • Russia has signed a double tax treaty;
      • Meet the effective tax rate test (75% of the average weighted tax rate (calculated on the basis of the formula);
      • There is an exchange of information between Russia and foreign country;
      • Is a Tax resident of the Russian “white list” 

–   Other exemptions 

For Foreign companies controlled and managed by Russian residents with which Russia has signed a double tax treaty  emphasis will be given on:

  1. Tax residency. The tax residency of both the Russian shareholder and the foreign country.
  2. Effective management. The company’s place of effective management.
  3. Beneficial ownership. The ability of the controlling person to exert influence of the decision with regards to the distribution of its profits.

 

Tax Residency

Tax residency will apply for Russian residents who hold shares in foreign companies which are tax residents in foreign country. Reference can be made to the provisions of Double Tax Treaty concluded between Russia and the foreign country.

Effective management

A foreign company is to be regarded as tax resident company in Russia if the place of effective management is in Russia. The effective management is in Russia if:

  1. The majority of meetings are held in Russia
  2. Operational management is taking place often in Russia
  3. The operational management main offices are in Russia

(Different rules apply on the disposal of Russian property rich companies and on foreign companies managed and controlled from Russia.)

Beneficial Owner

Income earned by foreign company which is derived from activities or investments in Russia will lose the benefit of reduced withholding tax provided for in the double tax treaties with Russia, if such foreign company is not the beneficial owner of such income. The beneficial owner should be person who has power over the usage and distribution of such income. 

Russian tax resident deadlines

  1. Notification in 2015 for Companies / structures set up prior to Control Foreign Company (CFC) rules
  2. Reporting date to Russian Authorities – March 2016.

 

Who will be the ones that might not be affected by the Russian Legislation (Russian Deoffshorisation)?

A)  Those who meet the criteria of Control Foreign Company (CFC) rules exemptions

Foreign companies controlled and managed by Russian residents should meet the criteria of Control Foreign Company (CFC) rules exemptions i.e.

–        Double tax treaty should exist

–        Must meet the effective tax rate test

–        There is an exchange of information between Russia and the foreign country

–        Be a tax resident of a possible proposed “white list”

–        Demonstrate economic substance in a foreign country by:

    i.      Establish independent offices i.e. purchasing or renting office space etc.

   ii.      Maintain group head offices thus having fully fledged offices with business telephone lines, domains etc.

   iii.      Own valuable intangibles i.e. intellectual property and performing the most important functions within the corporate structure

   iv.      Proper allocation of group assets

   v.      Recruit staff to administer the day to day management work of the company

   vi.      Appoint qualified directors who will have the ability to make decisions and really understand the nature of business

   vii.      Maintain business records, minutes of conferences, general meetings, accounting function etc.

   viii.      Demonstrate additional reasons for presence. I.e. to control activity risks, to improve costs control etc.

B)   Possibly Russians that will obtain tax residency in another country 

Russians that will obtain tax residency in another country and forgo Russian tax residency may not be affected by Russian Deoffshorisation. This can be achieved with the aid of obtaining visa or citizenship (passport) in a jurisdiction other than Russia.

C)   International trust

International discretionary trust in which Settlor / beneficiary demonstrates that he does not influence profit distribution and has no rights to revoke assets after their transfer to the trust (except by inheritance etc)

More specifically:

An international trust / trust company which holds and manages the assets on behalf of the Settlor / beneficiary. Discretionary trusts are more likely not to be affected by the Russian Deoffshorisation Law.

D)   Investment funds

Investment funds (Alternative Investment Funds (AIF)) which hold multiple categories of portfolios and Russian investors hold less than 10% in the investment fund.

E)   Structures with the combination of 3 and 4 above.

Conclusion

It appears that a large number of Russian interest foreign companies are not covered by the exemptions of the Russian Controlled Foreign Company (CFC) new rules, though the status of such companies will need to be clarified based on the above  criteria. However it is important to emphasize that the double tax treaties with which Russia has concluded with foreign countries cannot be overwritten. Double taxation agreements demonstrate taxing rights between two contracting states which cannot be superseded by any domestic law of any state. New Russian legislation will therefore have effect only to the extent that it is in line with Rus­sia’s double taxation agreements, unless Russia is prepared to terminate them, which seems highly unlikely, given the potential impact of such an action. It should also be emphasized that for those financial centers, with which Russia has concluded a double tax treaty can be an opportunity, especially if they are transparent, well regulated and offer to investors low cost services.

How we can help

–   We can help you to obtain visa or citizenship (passport) in another jurisdiction.

–   We can review your corporate structure (holding, financing and trading) and propose changes to your structure.

Contact us

Please contact us for a free personal consultation. All information will be treated in the strictest confidence. We are happy to sign Non Disclosure Agreement (NDA) or any other legal safeguards. 

 

PKF / ATCO Limited is a member firm of the PKF International Limited network of legally independent firms and does not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms. This publication is for information purposes only and should not be considered as professional advice.

Russian taxation (deoffshorisation) solutions

Is the new Russian law likely to affect international financial centers which Russian investors use to invest outside Russia? Are they possible solutions for Russian tax residents? 

Russian President Vladimir Putin recently approved a bill to deoffshorise Russian businesses. The law is expected to enter into force on 1st of January 2015. 

 What is Russian deoffshorisation

Russian Deoffshorisation can be defined as the measures adopted by Russian government to promote transparency and to combat tax avoidance by Russian taxpayers using foreign company structures.

The measures

Russian Controlled Foreign Company (CFC) new rules: Main aspects

Russian shareholders will be required to pay taxes in Russia on the retained earnings of foreign companies in which they hold a controlling stake the same way as Russian Companies. Any tax already paid by foreign companies will be given as a tax credit. A Russian shareholder is considered to be a legal/physical person holding more than 25% (50% 2015) of shares in foreign company or more than 10% if together with affiliated persons hold more than 50%.

Exemptions form the Russian Controlled Foreign Company (CFC) new rules

There are a number of exemptions from the taxation of Russian Controlled Foreign Company (CFC) new rules:

–   On profits of up to 10 million RUB from 1 January 2017 (50 million RUB in 2015 and 30 million RUB from 2016).

–   Active foreign companies with more than 80% of active business income

–   Foreign companies controlled and managed by Russian residents which:

      • Russia has signed a double tax treaty;
      • Meet the effective tax rate test (75% of the average weighted tax rate (calculated on the basis of the formula);
      • There is an exchange of information between Russia and foreign country;
      • Is a Tax resident of the Russian “white list” (Possibly a list may be compiled in the future by the Russian Ministry of Finance designating the countries that comply with the Russian new laws)

–   Other exemptions 

For Foreign companies controlled and managed by Russian residents with which Russia has signed a double tax treaty  emphasis will be given on:

  1. Tax residency. The tax residency of both the Russian shareholder and the foreign country.
  2. Effective management. The company’s place of effective management.
  3. Beneficial ownership. The ability of the controlling person to exert influence of the decision with regards to the distribution of its profits.

 

Tax Residency

Tax residency will apply for Russian residents who hold shares in foreign companies which are tax residents in foreign country. Reference can be made to the provisions of Double Tax Treaty concluded between Russia and the foreign country.

Effective management

A foreign company is to be regarded as tax resident company in Russia if the place of effective management is in Russia. The effective management is in Russia if:

  1. The majority of meetings are held in Russia
  2. Operational management is taking place often in Russia
  3. The operational management main offices are in Russia

(Different rules apply on the disposal of Russian property rich companies and on foreign companies managed and controlled from Russia.)

Beneficial Owner

Income earned by foreign company which is derived from activities or investments in Russia will lose the benefit of reduced withholding tax provided for in the double tax treaties with Russia, if such foreign company is not the beneficial owner of such income. The beneficial owner should be person who has power over the usage and distribution of such income. 

Russian tax resident deadlines

  1. Notification by 1 April 2015 for Companies / structures set up prior to Control Foreign Company (CFC) rules
  2. First reporting date to Russian Authorities is 20 March 2016.

 

Russian deoffshorisation Solutions

A)  meet the criteria of Control Foreign Company (CFC) rules exemptions

Foreign companies controlled and managed by Russian residents should meet the criteria of Control Foreign Company (CFC) rules exemptions i.e.

–        Double tax treaty should exist

–        Must meet the effective tax rate test

–        There is an exchange of information between Russia and the foreign country

–        Be a tax resident of a possible proposed “white list”

–        Demonstrate economic substance in a foreign country by:

    i.      Establish independent offices i.e. purchasing or renting office space etc.

   ii.      Maintain group head offices thus having fully fledged offices with business telephone lines, domains etc.

   iii.      Own valuable intangibles i.e. intellectual property and performing the most important functions within the corporate structure

   iv.      Proper allocation of group assets

   v.      Recruit staff to administer the day to day management work of the company

   vi.      Appoint qualified directors who will have the ability to make decisions and really understand the nature of business

   vii.      Maintain business records, minutes of conferences, general meetings, accounting function etc.

   viii.      Demonstrate additional reasons for presence. I.e. to control activity risks, to improve costs control etc.

B)   Obtain tax residency in another country 

Obtain tax residency in another country and forgo Russian tax residency. This can be easily achieved with the aid of obtaining visa or citizenship (passport) in a jurisdiction other than Russia.

C)   Set up an international trust

Set up an international discretionary trust in which Settlor / beneficiary demonstrates that he does not influence profit distribution and has no rights to revoke assets after their transfer to the trust (except by inheritance etc)

A possible structure could be:

–   Set up a written agreement between a service company/ trustee and the settlor / beneficiary.

–   Set up an international trust / trust company to hold and manage the assets on behalf of the Settlor / beneficiary. The trust should be a discretionary trust. The international trust / trust company is managed 100% by a service company / trustee.

–   Transfer the assets held by the settlor / beneficiary to the international trust / trust company.

D)   Set up an investment fund

Set up an investment fund (Alternative Investment Fund (AIF)) structure or transfer the assets to an existing investment fund (Alternative Investment Fund (AIF)) which it can hold multiple categories of portfolios. The investment fund (Alternative Investment Fund (AIF)) could take the form of a company. The Russian investor will hold less than 10% in the investment fund company but will hold 100% of its own assets. Russian investors own asset portfolio can be managed and controlled by a consulting company controlled by the Russian investor.

E)   Set up a structure with the combination of 3 and 4 above.

Conclusion

It appears that a large number of Russian interest foreign companies are not covered by the exemptions of the Russian Controlled Foreign Company (CFC) new rules, though the status of such companies will need to be clarified based on the above de-offshorisation criteria. However it is important to emphasize that the double tax treaties with which Russia has concluded with foreign countries cannot be overwritten. Double taxation agreements demonstrate taxing rights between two contracting states which cannot be superseded by any domestic law of any state. New Russian legislation will therefore have effect only to the extent that it is in line with Rus­sia’s double taxation agreements, unless Russia is prepared to terminate them, which seems highly unlikely, given the potential impact of such an action. It should also be emphasized that for those financial centers, with which Russia has concluded a double tax treaty can be an opportunity, especially if they are transparent, well regulated and offer to investors low cost services.

How we can help

–   We can help you to demonstrate economic substance outside Russia and recommend appropriate procedures in your structure so you activities are managed and controlled outside Russia. I.e. establishing independent offices, recruit staff to administer the day to day management work, appoint qualified directors, maintain business records, keep minutes of conferences, keep accounting records etc.

–   If you are a Russian resident, we can help you to relocate yourself and to obtain residency in another country. This can be easily achieved with the aid of obtaining visa or citizenship (passport) in another jurisdiction.

–   We can review your corporate structure (holding, financing and trading) and propose changes to the structures such as setting up of an international trust, investment fund (Alternative Investment Fund (AIF) or a combination of both.

Contact us

Please contact us for a free personal consultation. All information will be treated in the strictest confidence. We are happy to sign Non Disclosure Agreement (NDA) or any other legal safeguards. 

December 2014

Disclaimer

Cyprus Companies: Not complying with Cyprus Company Law (update)

The Cyprus Registrar of Companies in order to bring up to date the Cyprus Register of Companies commenced the procedure for deregistering Cyprus companies (under section 327 of the Companies Law) by sending letters to Cyprus companies that did not file their annual returns due together with the corresponding financial statements.

Moreover, the Cyprus Registrar of Companies commenced notifying Cyprus companies that failure to file annual returns (as required by Articles 118-121 of the Companies Law), within one month from the date of notice, the Registrar of Companies will proceed with the process of deletion.

Cyprus Registrar of Companies has also commenced notifying the Cyprus Tax Department its intention to proceed with the process of deletion. In this respect, Cyprus Tax Department has also commenced sending letters to Cyprus Companies warning of possible tax implication that may arise from imminent delisting.

How we can help

We can help you fulfill the obligations of your company with the Cyprus Registrar of Companies and Cyprus Tax Department. For more information please contact our offices:

[email protected]

 

PKF / ATCO Limited is a member firm of the PKF International Limited network of legally independent firms and does not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms. This publication is for information purposes only and should not be considered as professional advice.  

Cyprus Immovable Property Tax (IPT) 2014 period payment extended

The deadline for payment of Cyprus Immovable Property Tax (IPT) for the year 2014 is extended until 31 December, and early payment discount of 15 percent is also extended by one month. The last date for payment of Cyprus Immovable Property Tax (IPT) for the year 2014 will be 31 December 2014, instead of the end of November and taxpayers will receive a 15 percent discount if they settle their immovable property taxes until 30 November, instead of the end of October.

If the payment is made after 31 December 2014, there will be an additional charge of 10% of the tax due, plus interest and any administrative fines provided for in the legislation.

 This year Immovable Property Tax will be based on the values ​​of the 1980s as last year and on the current applicable Cyprus Immovable Property Tax rates.

It is expected that the new system of property valuation will be implemented in 2015, where property values will be ​​based on market values. It is expected that Cyprus Immovable Property Tax rates will also change.

 For more information and on information on how to pay your property tax, please refer to our previous article Cyprus Immovable Property tax 2014 guidance.

How we can help

We can help you to complete the relevant Immovable Property Tax forms and pay the tax obligations of your Cyprus Immovable Property.

Please contact our offices:

[email protected]

 

PKF / ATCO Limited is a member firm of the PKF International Limited network of legally independent firms and does not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms. This publication is for information purposes only and should not be considered as professional advice.

PKF Cyprus acting as an Introducer for the opening of bank accounts in Cyprus

PKF Cyprus in its efforts to provide decent and fast banking to its international clientele has established a number of introduction agreements with number of foreign banks and with almost all banks operating in Cyprus. This development is giving the power and authority to PKF Cyprus to act as an introducer for the opening of bank accounts in Cyprus and abroad.

Apart from acting as an introducer for opening of bank accounts in Cyprus, PKF Cyprus supports its clients through a strategic and operational management of banking service, including:

  1. Bank account opening in Cyprus: introducing, recommendation and assessment of well-capitalised banks to provide banking services for Cyprus companies, trusts and individuals. We are official introducers for Bank of Cyprus, Hellenic Bank, Russian Commercial Bank (RCB), Societe General, Alpha Bank, Eurobank, Barclays Bank and a range of other national and international financial institutions in Cyprus.
  2. Bank account opening in secondary jurisdictions, including Malta, Jersey, Isle of Man, and other jurisdictions served by the PKF network. This is a good risk diversification method and is recommended to our clients.
  3. Compliance with bank, Know-your-Customer (KYC) and due diligence requirements.
  4. Set up of e-banking facilities as well as internal procedures and controls necessary to manage banking activities.
  5. Reconciliation of corporate bank account movement with financial income and expenditure.
  6. Currency management and exchange rate analysis.
  7. Support for managing documentation required for international banking transfers such as contracts, trade finance, etc. 

Cyprus Bank Account Opening, either for an individual or a legal person (Cyprus Company), is easily achievable and cheap. Cyprus Banking can offer all the facilities required by businessmen or individuals.

In other jurisdictions the opening of a bank account could be time consumable and complicated something that is not applicable for Cyprus. In Cyprus opening a fully functional, activated and operational account, taking in mind that the requested documents and information were submitted properly to the bank, it will take less than 3 or 4 working days.

Who can open a Cyprus bank account?

Any physical person over the age of 18 years and any legal person (Cyprus Company or corporation) can open a bank account.

Is your physical presence necessary?

Cyprus banks are fully professional and client’s presence is a prerequisite unless the client is introduced by an approved introducer (in this case PKF can act as an introducer for the opening of bank account). This is important as it save precious time, unnecessary expenses, inconvenience and travelling in Cyprus.

Formalities needed to open a Cyprus bank account

If you are an individual and you wish to open a bank account, the following (either original or apostiled copies) should be submitted directly to a Cyprus bank or a professional intermediary:

  • Valid passport or identity card bearing signature and photo for permanent residents of the EU;
  • Proof of residential address (i.e. utility bill not older than six months);
  • Bank reference letter from your bankers;
  • Cyprus Bank’s account-opening documents fully signed;
  • PKF’s preliminary questionnaire completed with information that requested by the bank.
  • Other formalities or information that might be considered important by the Cyprus bank.

For companies and partnerships in order to proceed with the opening of a Cyprus bank account the following, either original or apostiled copies) should be submitted to directly to the bank or a professional intermediary:

Companies:

  • Memorandum and Articles of Association;
  • Official corporate certificates;
  • Trust deed(s) between the beneficial owner and the registered shareholder(s) acting as nominees (if applicable);
  • Cyprus Bank’s account-opening documents fully signed;
  • PKF’s preliminary questionnaire completed with information that requested by the Cyprus bank;
  • Other formalities or information that might be considered important by the Cyprus bank.

Partnerships:

  • Partnership agreement;
    • Official certificates;
    • Cyprus Bank’s account-opening documents fully signed;
    • PKF’s preliminary questionnaire completed with information that requested by the Cyprus bank;
    • Other formalities or information that might be considered important by the Cyprus bank.

Cyprus banking confidentiality

The confidentiality of clients is fully protected as the details of the Cyprus bank account are not revealed to the Cyprus tax authorities, or any other authorities, or the government or any third country. The only way the banks to disclose any information on the Cyprus bank accounts, is if are required to do so by Court in Cyprus or the General-Attorney in the process of a very serious crime

The PKF Network comprises 300 member firms and correspondents in 440 locations in 125 countries and provides unparalleled access to financial institutions world-wide.

Contact Us to discuss your Cyprus bank account opening requirements. 

You may also contact us on our email addresses on:

[email protected]

Last updated (Oct. 2014)

 

PKF / ATCO Limited is a member firm of the PKF International Limited network of legally independent firms and does not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms. This publication is for information purposes only and should not be considered as professional advice.

Failure to comply with the Cyprus Registrar of Companies – update

 The Cyprus Registrar of Companies announced, that as from 29 September 2014 the procedure for deregistering Cyprus companies will commence under section 327 of the Companies Law Cap 113 by sending reminding letters to all Cyprus companies that did not file the annual returns due with the corresponding accounts. 

 

PKF / ATCO Limited is a member firm of the PKF International Limited network of legally independent firms and does not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms. This publication is for information purposes only and should not be considered as professional advice.

PKF Nicosia relocating to new premises

We are pleased to announce that as of 1st October 2014, PKF Nicosia will relocate to its new premises. The operations in Nicosia will be carried out at the following address:

67 LIMASSOL AVENUE,

VISION TOWER, Floors 4th & 5th

2121 AGLANTZIA, NICOSIA, CYPRUS

Our telephone and fax numbers, as well as our e-mail address remain the same:

Telephone (switchboard):

+357 22462727

Facsimile:

+357 22339866

E-mail:

Info.nicosia@pkf.com.cy

Our correspondence address also remains the same:

P.O. BOX: 24384, 1703 Nicosia, Cyprus

Our new offices are housed in a modern building, located in the entrance of Nicosia, and features convenient office space for our staff, conference rooms and relax rooms with a large open terrace. The new development will enable our firm to accommodate its clients more effectively and efficiently. The building was designed with advanced technology to better serve the clients and staff.

We are looking forward to seeing you at our new offices.

Cyprus Immovable Property tax 2014 guidance

 Cyprus immovable property tax for the year 2014 is due for payment until the 30th of November this year. The Cyprus Immovable Property tax is based on the total market value at 1 January 1980 for all properties held by each owner. These values ​​appear on the title deed with reference at 1 January1980. It may, however these values ​​have been revised due to the meanwhile building / construction of additional premises executed after the date of valuation of 1 January 1980 from the Land Registry.

The Inland Revenue Department is planning to send the relevant taxes in the month of August. Along with the Immovable Property Tax notice, a detailed statement of each property owner will also be attached as per the files of the Department of Lands and Surveys.

If the statement does not include all the Cyprus Immovable properties or if property owned in Cyprus with 1 January 1980 values is over €12.500 and no tax assessment have been received, or if there is a disagreement on the ownership of these properties, The District Offices of the Department of Inland Revenue must be attended.

If the resulting Cyprus Immovable Property tax is paid at least one month before the deadline for payment that is paid until 31 October 2014 then it will be a discount of 15% on the outstanding amount. Otherwise if the payment is made after 30 November 2014, there will be an additional charge of 10% of the tax due, plus interest and any administrative fines provided for in the legislation.

New buyers of Cyprus Immovable Property should go to the District Offices of the Department of Inland Revenue (Immovable Property Department) to settle these issues.

For those Cyprus Immovable properties that no title deeds have been issued to the buyers, transferees or beneficiaries on ‘fault of the owner, the above provision will not apply.

Cyprus Immovable Property Tax can be paid to the District Offices of the Inland Revenue Department (Tax Collection Department), presenting the immovable property tax assessment. 2014 Cyprus Immovable Property Tax can also be paid through the website www.jccsmart.com, and Cyprus banks. Taxpayers wishing to pay via the website www.jccsmart.com, they must enter the No. JCCSmart indicated on the Immovable property tax notice and pay using their credit card. Taxpayers wishing to pay via Cyprus banks should have with them the Immovable Property Tax assessment, their Identity Card and the tax amount in cash or their credit card.

Please click here to see Cyprus Immovable Property Tax Rates

How we can help

We can help you fulfill the tax obligations of your Cyprus Immovable Property with the Inland Revenue Department.

Please contact our offices:

[email protected]

(Published: 1 August 2014)

Cyprus Companies implications for not complying with Cyprus Company Law.

The Cyprus Registrar of Companies in order to bring up to date the Cyprus Register of Companies, issued various announcements with which Cyprus companies are urged to:

(1) Pay any amounts due for annual levy for the years 2012 and 2013 and,
(2) File all Company’s annual Returns due (HE32) together with the corresponding Financial Statements. The last annual return due is the annual return for the year 2013 accompanied by the audited accounts for the year 2012, for which in accordance with the notice of the Cyprus Inland Revenue, the last date for submission is 30 June 2014.

Failure of a Cyprus company to comply with the above, in accordance with section 327 of the Cyprus Companies Law, The Cyprus Registrar of Companies may proceed to deregister a company from the Cyprus Companies Register after sending first and second notification to the company and the necessary three month publication is made in the Cyprus Official Gazette. Deregistration procedure may be terminated by the Registrar at any time if the company complies with filing of the above.

How we can help

We can help you fulfill the obligations of your company with the Cyprus Registrar of Companies. For more information please contact our offices:

Limassol                            Nicosia

[email protected]       [email protected].com.cy

Cyprus Investment Funds new reformed law (Alternative Investment Funds (AIFs)Law)…The new law is expected to be mostly welcomed by…

 Cyprus recently reformed its law on Investment Funds. The new law is expected to be mostly welcomed by fund managers and fund administrators as Cyprus Investments Funds are now more flexible, transparent and marketable.

The new law is expected to make Cyprus Alternative Investment Funds (AIFs) more attractive than they used to be in the past. Some of the most important new characteristics of the Cyprus Alternative Investment Funds (AIFs) incorporated in the new law are:

– All types of Alternative Investment Funds (AIFs) are now of unlimited duration

– Funds of unlimited number of unit holders – shareholders are now marketed to investors

– Fund units – shares are now freely transferable

– Funds units – shares may now be listed, marketed or traded to investors

– Minimum capital requirements are now 125.000 Euros and for self managed funds 300.000 Euros.

– Under the new legislation the establishment and the supervision passed under the Cyprus Securities and Exchange Commission (CySEC) (Previously the prior approval of the Central Bank of Cyprus, as the regulatory and supervisory authority, was required.)

For more information please contact our offices:

[email protected]

Cyprus companies provisional tax payment for the year 2014…

 Cyprus companies provisional tax payment – year 2014 Cyprus companies are obliged to submit a provisional tax computation of their Cyprus taxable income and Cyprus tax due for the tax year 2014 by 31st July 2014.

The Cyprus tax payable based on the Cyprus taxable income is payable in two equal installments, before or at the following dates:

– 31 July 2014

– 31 December 2014

If any of the installments remain unpaid up to the due dates, 5% penalty is imposed from the due dates of payment and 4.5% annual interest.

The computation to the taxable income can be adjusted prior 31 December 2014. If as a result of the adjustment the tax payable is increased, then the difference between the amount of adjusted installments and the initial installments bears interest from the due dates of each installment.

How can we help

We can help you to calculate and submit your Cyprus Company taxable income and pay your Cyprus tax on or before 31 July 2014 and 31 December 2014.

For more information please contact our offices:

[email protected]

Cyprus companies: Failure to comply with the Cyprus Registrar of Companies…

 The Cyprus Registrar of Companies and Official Receiver announce that all Cyprus companies should until 30/06/2014 file all Annual Returns (HE32) due together with the corresponding Financial Statements.

All Cyprus companies that will fail to meet the above shall be de-registered by the Cyprus Registrar of Companies.

For more information please contact our offices:

[email protected]

How to pay Cyprus Companies annual levy for 2014

 According to Cyprus Company Law (Art. 391 of CAP. 113), Cyprus Company Amendment Law (No.3) 2012 and the Cyprus Companies Amendment Act of 2013, which was adopted on the 17th January 2013, we would like to inform you of Cyprus Companies’ obligation of €350 annual fixed duty for 2014.

Please be advised that the payment of €350 for 2014 is payable until 30th June 2014.

The settlement of the annual duty should ONLY be done through JCCSmart website through the following link:

https://www.jccsmart.com/

Please follow the instructions below for the payment through JCCSmart website.

Instructions for the payment of Cyprus Companies annual levy (2014) through JCCSmart website:

1) Click on the following link https://www.jccsmart.com/Account/LogOn?ReturnUrl=%2feBills%2fInvoice%2fIndex%2f894

2) If you retain an account with JCCSmart please skip steps 3 and 4 and move to step 5. If not, please follow steps 3 and 4 to create one.

3) Click on the link ‘NEW CLIENT’ and input all required data in the fields provided and click the link ‘REGISTER’ – your account has been created.

4) Then repeat the procedure from step 1 by clicking on the following link: https://www.jccsmart.com/Account/LogOn?ReturnUrl=%2feBills%2fInvoice%2fIndex%2f894

5) Input your email address and the password to be log in the system.

6) Then input company’s number with latin characters (i.e. ΗΕ11111).

7) Then input your card’s details according to the required fields for the completion of the transaction.

For more information please contact our offices:

[email protected]