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Category: Law



Beach
12/07/2022

Limited Assurance Review

News 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

Dock
18/06/2020

NOTIONAL INTEREST DEDUCTION

News in 2020, Law, Updates

The Notional Interest Deduction (NID) with retrospective effect as from 1st January 2020 rules have been amended by the Cyprus Income Tax (Amending) Law 66(I)/2020.

The new Law provisions that the NID Reference Rate is defined as the interest rate of the 10 year government bond yield of the country in which the new equity is invested (as published annually) increased by 5% instead of 3% that was applicable in prior years. 

Read more

EU Anti-Tax Avoidance Directive
16/05/2019

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

News in 2019, 2019, Law, Tax

Introduction

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.