On June 1st 2021, the Republic of Cyprus and the Kingdom of the Netherlands concluded a convention for the Elimination of Double Taxation with respect to Taxes on Income and the Prevention of Tax Evasion and Avoidance (the “Treaty”).
On 04/06/2021 the Registrar of Companies issued an instruction in relation to the establishment of the Register of UBOs (Registration of beneficial owner particulars) and the possibility of registering such beneficial owner particulars by the Officials (natural and legal persons) of a company. The Registrar of Companies confirmed that their aim is to facilitate this by October 2021.
In an attempt to strengthen and harmonize the framework with regards to the prevention and suppression of money laundering, the Register of UBOs has been created. On 18/02/2021 the Cyprus Parliament passed the amending Law on the Prevention and Combating of Money Laundering of 2021.
In the context of transposing the Directive (EU) 2015/849 of the European Parliament and of the Council of 20 May 2015, which relates to the prevention of money laundering and terrorist financing, into the national law of the Republic of Cyprus, Section 61A(4)(a) of the “Prevention and Suppression of Money Laundering and Terrorist Financing Law of 2007 (188(I)/2007)” provides for the maintenance of a central registry holding information in relation to the beneficial owners of companies and other legal entities.
The new amending Law N.179(I)/2020 provides that the exemption of 20% (maximum €8550) of the income of a person from employment in Cyprus, who was not a tax resident of Cyprus during the previous tax year, will apply to any such new employment starting any time up to year 2025.
According to a Decree published in the Official Gazette on the 27th of November 2020, the deadlines for the submission of personal income tax returns for the year 2019 and payment of tax, are further extended to the 15th of December 2020.
The transitional period for Brexit ends on the 31 December 2020. In this briefing, we attempt to provide in short what UK nationals would need to consider and the options they have, especially if they have or are thinking of setting up a business in an EU country. With this in mind and the possibility of a no-deal Brexit looming, British businesses could benefit from transferring their businesses to Europe and if so, why not in Cyprus!
In accordance with VAT Law 147(I)/2020 (published on the 2nd of November 2020), the relevant provisions of the Vat Law have been amended in order to extend the deadline for the VAT that was due on the 10th of November 2020 for the periods ended 29/02/2020, 31/03/2020 and 30/04/2020 excluding certain categories of taxable persons.
According to a Decree published in the Official Gazette on the 20th of October 2020, the deadlines for the submission of personal income tax returns for the year 2019 and payment of tax, are extended to the 30th of November 2020.
The Council of Ministers has approved the creation of a Fast Track Business Activation Mechanism for setting up a company in Cyprus by third-country nationals to attract more foreign investment to the island.
Cyprus and Russia have just agreed on an amendment of the double taxation agreement between the two countries. The Russian government assured the withdrawal of the termination procedures of the Convention.