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...
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...
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...
Cyprus Tax Residency.

Cyprus Tax Residency.

Typically your tax residency is where you stay more than 183 days per year. This is also true in Cyprus. But now the government introduced a new rule: The 60 Day Rule. It is meant for the people who want to establish a Cyprus tax residency but have problems showing...
Is Absolute Tax Certainty Ever Attainable?

Is Absolute Tax Certainty Ever Attainable?

Tax certainty is the basis of a stable tax system serving both taxpayers and governments. But is there anything simple about tax? Can the tax system ever be uncomplicated? Tax is a complicated subject and for every tax rule established, a way around would always be...