The new Transfer Pricing (TP) legislation in Cyprus & its expected impact.

The new Transfer Pricing (TP) legislation in Cyprus & its expected impact.

On 30 June 2022, Cyprus has introduced provisions for implementation of transfer pricing regulations in Cyprus by amending the current Cypriot Income Tax & Assessment and Collection laws. The effective date of the TP legislation is the 1 January 2022. The main purpose of the introduction of the TP legislation is the alignment of the Cypriot Tax laws with OECD guidelines against Base Erosion and […]

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Cyprus Notional Interest Deduction (NID) rates for 2021

Cyprus Notional Interest Deduction (NID) rates for 2021

The Cyprus Tax office announced the 10-year government bond yield rates as at 31/12/2020 for a number of countries. These rates increased by 5% (the reference rate) can be used for calculating the notional interest deduction on new equity introduced in the business (01/01/2015 onwards). The choice of country depends on where the new equity has been invested. The NID is restricted to 80% of […]

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Amendments of the Cyprus IP Box tax regime

Amendments of the Cyprus IP Box tax regime

The provisions of the Cyprus Tax law for the treatment of intangible assets have been amended on 14/08/2020, retrospectively from 01/01/2020. The amendments as explained below they enhance the attractiveness of the regime by: abolishing any tax on the gain realized on the disposal of the intangible assets (even on the capital allowances claimed as tax deduction) and; provide flexibility to taxpayers on the claim […]

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Changes in the companies’ law

Changes in the companies’ law

On 23 September 2016 the companies law has been amended. The main changes are as follows: The directors report, included in the financial statements, will change to a management report and the law specifies what should be included in that report There is a new definition for small – medium and large companies and also for small – medium and large groups On the calculation […]

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