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Corporate Tax
Cyprus
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Including: Basis of Taxation; Income Tax; Social Insurance; Special Defence Contribution; Capital Gains Tax; Double Taxation Agreements; Succession Taxes; Advance Rulings; Capital Duty; Stamp Duty; Value Added Tax; Immovable Property Tax; Fees on Transfer of Immovable Property.Cyprus removed from all Italian tax blacklists
20/08/2010 An additional protocol to the Cyprus-Italy agreement on the avoidance of double taxation has been ratified by both countries. The additional protocol provides for the exchange of information based on the Organisation for Economic Cooperation and Development Model Tax Convention. As a result, Cyprus has formally been removed from Italy's three 'blacklists' of countries considered to have systems which favour the avoidance of taxation.
Improvement in tax regime for collective investment schemes
26/02/2010 Recent amendments to the Income Tax Law and the Special Contribution for Defence Law will give rise to significant benefits for holders of units in collective investment schemes, thus improving the attractiveness of Cyprus as a base for such schemes.
Abolition of minimum shareholding requirement for SDC tax exemption
22/01/2010 Special contribution for defence (SDC) tax is payable on income from rentals, dividends and interest. Law 111(I)/2009, enacted towards the end of 2009, made a number of important amendments to the Special Contribution for Defence Law, including simplifying arrangements for the taxation of interest and abolishing the minimum shareholding requirement for exemption from SDC tax on dividend income.
Simplification of Tax on Interest
04/12/2009 Cyprus has made a number of significant changes to its tax laws relating to the participation exemption, the taxation of mutual funds and the taxation of interest. Although the main aim of the changes was to increase the attractiveness of the taxation regime for mutual funds and collective investment schemes, the authorities have also taken the opportunity to simplify the taxation of interest in general.
Guidance on Margins for Intermediary Financing Vehicles
30/10/2009 The Cyprus tax authorities have recently provided guidance on the parameters to be observed in arriving at the acceptable margin of taxable interest which should apply in transactions involving Cypriot entities as intermediary financing vehicles in back-to-back financing arrangements.
Additional Protocol to Cyprus-Italy Double Tax Treaty Signed
31/07/2009 Cyprus and Italy have signed an additional protocol to their agreement on the avoidance of double taxation. According to the Cypriot minister of finance, the additional protocol will remove Cyprus from Italy's blacklist and resolve outstanding tax issues between the two states.
Litigation
Cyprus
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Including: Sources of law and court procedure; Limitation periods; Pre-trial; Pleadings; Interlocutory applications; Trial; Remedies; Injunctive relief in support of foreign proceedings; Costs; Security for costs; Appeals.Scrutinizing and supporting arbitration proceedings before Cypriot courts
20/07/2010 The Supreme Court of Cyprus recently delivered a decision reaffirming the Cypriot courts' support of the arbitration process in accordance with certain principles. The Supreme Court's decision adds clarity to the powers and obligations of arbitrators and further demonstrates that Cypriot courts will respect and support arbitration proceedings and the function of arbitrators.
Supreme Court rules on issue of international arbitration and ship arrests
18/05/2010 In a recent case the admiralty division of the Supreme Court held that a vessel cannot be arrested as security for a potential future award in London arbitration proceedings. Basing its decision on an English Court of Appeal decision, the court concluded that the Cyprus Admiralty Court did not have jurisdiction "since the request of the plaintiff [was] for security in connection to the result of an arbitration procedure".
Shipping & Transport
Cyprus
Adoption of new international codes on marine accident investigation
18/08/2010 The Cyprus Department of Merchant Shipping has announced changes to the legislative framework for investigating marine accidents. The International Codes on Marine Accident Investigation Decision of 2010, issued under Section 4 of the Convention on the International Maritime Organisation (Ratification) and for Matters Connected Therewith Laws 1973 to 1996, approves two International Maritime Organisation codes.
Cyprus's new shipping tax regime
23/06/2010 The Merchant Shipping (Fees and Taxing Provisions) Law was recently enacted and has retroactive effect from January 1 2010. The new law marks a significant triumph for the Cyprus shipping authorities, which have secured EU approval on state aid for an updated tonnage tax regime that will secure Cyprus's continued competiveness in shipping until 2019.
Supreme Court rules on issue of international arbitration and ship arrests
19/05/2010 In a recent case the admiralty division of the Supreme Court held that a vessel cannot be arrested as security for a potential future award in London arbitration proceedings. Basing its decision on an English Court of Appeal decision, the court concluded that the Cyprus Admiralty Court did not have jurisdiction "since the request of the plaintiff [was] for security in connection to the result of an arbitration procedure".
New tax regime for international maritime transport companies receives EU approval
14/04/2010 The government's proposal to reduce the tax burden on companies that engage in international maritime transport through the introduction of a special tax regime has received approval from the European Commission. The commission found that the scheme complies with EU guidelines on state aid to maritime transport and has authorized it until December 31 2019.
Taxation of Ship Management Companies
18/03/2009 The Department of Merchant Shipping recently issued a circular reminding ship managers of the arrangements for assessment and payment of their tax liabilities for 2008. Under Section 19 of the Income Tax Law 2002, ship managers may opt to be taxed according to the prevailing Income Tax Law at a rate of 4.25% on their income from ship management services.
European Union
New Liner Consortia Block Exemption Regulation comes into force
11/08/2010 The new EU Liner Consortia Block Exemption Regulation recently came into force. This regulation applies to consortia only in respect of international liner shipping services to or from one or more EU ports. Provided that no hardcore restrictions exist, and that the conditions stipulated are satisfied, the regulation provides certain exemptions.
