Tax Payback on Company Capital

Tax Payback on Company Capital

As we did write in our post regarding Cyprus tax, corporate entities, under certain circumstances, can deduct a hypothetical interest on the paid-up capital of the company. This deduction lowers the taxable profit of the company. The interest is calculated either on...
Cyprus Focuses on Substance

Cyprus Focuses on Substance

Recent developments highlight the importance of substance for companies in Cyprus who wish to operate and benefit from the advantageous Cypriot tax rates. A lack of substance can mean that the benefits of having a presence in Cyprus disappear – and also that the...
2018 Financial Secrecy Index published

2018 Financial Secrecy Index published

This week the Tax Justice Network published its biannual Financial Secrecy Index, which relates tax-related secrecy to market significance by country. In other words, this ranking shows which countries hinder the total transparency of private (tax) data the most. The...
Description of the Cyprus KYC Rules.

Description of the Cyprus KYC Rules.

What is the KYC procedure in Cyprus? Cyprus has been quick to adopt the Fourth Anti-Money Laundering (AML) Directive as a legislative proposal. In a bid to comply with the new reform, the following are the obligatory requirements in Cyprus: Individual Beneficial...
New Rules for Back-to-Back Loans.

New Rules for Back-to-Back Loans.

On June 30, 2017 the Cyprus’ Tax Department has issued a circular updating the rules for intra-group back-to-back financing arrangements. Effective since July 1, 2017, the circular states that all these arrangements now must meet the arm’s-length principle. There are...