Category: Tax



29/11/2022

Temporary Tax – 2nd instalment for the year 2022

in 2022, Tax

We kindly remind you that the deadline for the submission of the revised provisional tax return and payment of the 2nd instalment for 2022 provisional tax is by 31st December 2022.

If there is a change in the estimated taxable income for the tax year 2022, a revised temporary form should be submitted and paid by 31st December 2022. The revised taxable income will be apportioned equally over the two instalments and the difference arising will bear interest of 1.75%.

In case the initial estimation remains unchanged, the payment of the 2nd instalment can be made by 31st January 2023.

The final payment of the 2022 tax must be made via self-assessment by 1st of August 2023.

We remain at your disposal for any clarifications and assistance.

For more details, please contact:

George Yiallourides
Managing Director
T: 0035725443132
E: yiallourides@ayca.com.cy

28/11/2022

UBO REGISTRY

in 2022, Tax, Transfer Pricing

We would like to inform you of the Judgement of the Court of Justice of the European Union regarding public access to the UBO Registries of legal entities. Based on the Judgement of the Court, Article 1(15)(c) of Directive (EU) 2018/843 which provides for the information on the beneficial ownership to be accessible in all cases to any member of the public, is invalid.

It is highlighted that the invalidity concerns only the provisions on public access and not the obligation to collect, submit and update UBO information on the Registry, which are still in force.

The full text can be found in the below link:

CLICK HERE

For more details, please contact:

George Yiallourides                                                                 
Managing Director                                                                    
T: 0035725443132                                                                   
E: yiallourides@ayca.com.cy     

Yiannis Charalambous                                                                 
Tax Manager                                                                    
T: 0035725443132                                                                   
E: ioannis@ayca.com.cy   

 

 

21/07/2022

New Employment in Cyprus Tax Incentives

in 2022, Tax

On 15 July 2022, the Cyprus House of Representatives voted in favor for the replacement of the existing income tax exemptions for employment income.

We outline here below the new income tax exemptions:

  • As from 1 January 2022, the “new” 50% tax exemption applies on remuneration for first employments exceeding EUR55.000 p.a., by individuals who were not a resident of Cyprus for a period of at least 10 consecutive tax years immediately prior to the commencement of their employment in Cyprus.  The benefit can be enjoyed once in their lifetime for a period of 17 years. Subject to certain conditions, individuals whose employment commenced prior to 1 January 2022, may also be eligible to transition into the new 50% exemption.
  • The “new” 20% exemption on remuneration (up to a maximum amount of exemption of EUR8.550 p.a.) will apply as from the Publication Date of the particular amendment of the Law , for first employments commencing after the Publication Date exercised in Cyprus, by individuals who immediately prior to the commencement of their employment in Cyprus were not a resident of Cyprus for a period of at least 3 consecutive tax years and were employed outside of Cyprus by a non-resident employer. The exemption will apply for a period of 7 years, starting from the tax year following the tax year of commencement of employment.

For those employees that do not meet the new conditions set for the “new” 50% exemption but are eligible for the existing 20% and 50% exemptions on employment remuneration, the benefit from the existing exemptions respectively will continue. The “old” 20% exemption for a total period of 5 years and the” old” 50% exemption for a total period of 10 years.

We are at your disposal for any clarifications.

Please contact:

George Yiallourides
Managing Director 
T: +35725443132
E: yiallourides@ayca.com.cy 

Panicos Charalambous
Director 
T: +35725443132
E: panicos@ayca.com.cy

06/07/2022

Temporary Tax – Preliminary Self-assessment for the year 2022

in 2022, Audit, Tax

We kindly remind you that under the provisions of the Income Tax Law, every Company must submit to the Tax Authorities by 31st July a preliminary self-assessment, declaring the Company’s estimated Taxable income of the current year as well as the respective Tax payable. The general income tax rate for all companies for 2022 is 12.5%.

Note that the non-submission of such return is considered as submission of zero declaration, that is to say zero taxable income and zero tax.

The estimated Tax payable must be paid in two equal instalments on or before 31st July 2022 and 31st December 2022. Effective deadline, without interest or penalty being imposed, is one month later.

The original declaration can be revised at a later stage before December 31st of the current year. However, the revised Taxable income will be apportioned equally over the two instalments and the difference on the instalments already paid will attract interest at 1.75%.

The declared Taxable income must not be less than 75% of the final Taxable income as determined by the audited Financial Statements otherwise an additional tax of 10% on the remaining tax payable will apply. We remind you that the tax return for 2022 needs to be submitted by 31st March 2024 although interest on the amount due is calculated from 1st August 2023.

In view of the above you are requested to either provide us with your estimated Taxable Income for the year or to provide us with the necessary information to assist you in establishing the estimate.

Please contact:

George Yiallourides                                                                    Yiannis Charalambous                                  
Managing Director                                                                     Tax Manager

T: 0035725443132                                                                      T: 0035725443132                    

E: yiallourides@ayca.com.cy                                                       E: ioannis@ayca.com.cy

 

04/07/2022

Transfer Pricing studies documentation compliance requirements

in 2022, Audit, Tax

On 30th June 2022 the Cyprus Parliament approved the amendments to the Cyprus Income Tax Law with immediate effect for the year 2022, introducing Transfer Pricing (“TP”) studies documentation compliance requirements, in line to the OECD Guidelines as amended from time to time.

To view the guidelines click here.