New Employment in Cyprus Tax Incentives
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

Limited Assurance Review
12/07/2022

Limited Assurance Review

in 2022, Audit, Law

The House of Representatives have approved amendments to the Companies Law and to the Assessment and Collection of taxes Law to facilitate and ease the obligations of small and medium size enterprises and of individuals.

In summary if the below mentioned thresholds are met the enterprise will be subject to a limited assurance review instead of a full audit.

The thresholds are:

  • Companies that the Net Turnover does not exceed €200.000 and total balance sheet does not exceed €500.000, for at least two consecutive years.  
  • Individuals whose Turnover and any other income from sources defined in articles 5(1)(c), 5(1)(f) and 5(1)(g) of the Income Tax Law are in the range  €70.000 to €200.000, and whose total balance sheet does not exceed €500.000, for at least two consecutive years.

The amendment will enter into force on 1 January 2023 and its provisions apply to the Financial Statements of Companies ending 31 December 2022 or any other later date. 

The above amendments do not apply:

  • Parent Companies that are required to prepare consolidated Financial Statements.
  • Companies which are regulated and supervised by the Central Bank of Cyprus, the Cyprus Securities and Exchange Commission and the Commissioner of Insurance.
  • Companies which acquire or hold a qualifying participation in such companies.

Finally, they have approved a reduction to the penalty for late submission of annual returns relating to the years 2021 and 2022 from €500 to €150 for the period between 9 June 2022 and 31 December 2024 and extended the deadline for the payment of the 2022 annual company levy from 30 June 2022 to 31 December 2022.

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

Temporary Tax – Preliminary Self-assessment for the year 2022
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

 

Transfer Pricing studies documentation compliance requirements
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.

«Charity Event One Dream, One Wish»
19/05/2022

«Charity Event One Dream, One Wish»

in 2022, Events

In these difficult times we need each other more than ever. For the 8th consecutive year, we will co-organise with our associates, the “ Wish for the Stars” a charity evening to remember, that will include a musical with original score, performed by our staff, instructed, and directed by Niovi Spyridaki of Character Acting Studio by Niovi Spyridaki and choreographed and instructed by Eva Messi of Maria Messis Dance School.

All net proceeds will be donated to the Charity Organisation ”One Dream One Wish” for cancer-afflicted children.

Organizers: YIALLOURIDES & PARTNERS LTD, VISTRA (CYPRUS) LTD, PATRIKIOS PAVLOU & ASSOCIATES LLC και AMICORP (CYPRUS) LIMITED. 

Supporters: Studios 101 & Helena Brian Marketing & Advertising, Ariana Papadopoulou – Katrin Fashion School

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