Category: Tax


Shipping Tonnage Tax System – Environmental Incentive

in Shipping, Tax

The Shipping Deputy Ministry (SDM) of Cyprus has announced environmental incentives for the Cyprus Tonnage Tax System.

It provisions a reduction of tonnage tax up to 30% for owners of Cyprus and Community flagged ships that use mechanisms for the environmental preservation of the marine environment and the reduction of the effects of climate change.

Environmental incentives are the following:

  1. Energy Efficiency Design Index
  2. IMO Data Collection System (D.C.S.)
  3. Use of alternative fuels

The outlined environmental incentives are cumulative and as per the Merchant Shipping (Fees and Taxing Provisions) Laws of 2010-2020, each ship can only receive a maximum 30% rebate on the Annual Tonnage Tax. An eligible ship for any of the environmental incentive is a ship that engaged in a qualifying shipping activity as per the Merchant Shipping (Fees and Taxing Provisions) Laws of 2010-2020.

Detailed information on the incentives can be found here.



in 2020, Tax, Updates

We are proud to announce that Yiallourides & Partners LTD has established an association with TPAC LTD a company specialising in transfer pricing studies (TPS), with Mr. Panikos N. Tsiailis FCCA as the managing director. TPAC will be working in close cooperation with our tax team.

To read the full announcement, please click here.

EU Anti-Tax Avoidance Directive

Cyprus implements the legislation of the EU Anti-Tax Avoidance Directive

in 2019, 2019, Law, Tax


On the 5th of April 2019, the House of Representatives approved the proposed legislation (the Law) implementing the provisions of the European Union Anti-Tax Avoidance Directive (ATAD or Directive). The new Law will come into force once it is published in the Official Gazette of the Republic. The provisions of the Law shall be effective as of 1 January 2019 (i.e. from the tax year 2019 onwards).

The Law introduces the below:

  • Interest limitation rules
  • CFC rules
  • General Anti-abuse rule (GAAR).

The second phase of the implementation of the Directive concerning the exit taxation provisions and the Hybrid mismatch rules will be effective as of 1 January 2020.

The first implementation of the ATAD Law impacts only Cyprus Corporate Income Tax payers and more specifically Cyprus Tax Resident Companies and Cyprus Permanent Establishments (PEs) of non-Cyprus Tax Resident Companies.

For more information, please click here.


Tax Calendar 2019

in 2019, Tax

A useful guide for tax payment deadlines and other filing obligations for the Year 2019. For more info click here.


Social Security and National Health System (GESY)

in 2019, Tax

As from the 1st of January 2019 the Social Insurance fund contributions have been increased and as from the 1st of March 2019 a new contribution will be introduced for GESY – National Health System.

For more information, please click here.