Tax
The information published in these booklets is accurate as at the date of publication.
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_CyprusTaxFacts2010_66x69_020210.jpg "Cyprus Tax Facts 2010")
Cyprus Tax News
The House of Parliament on the 14th of December 2010 has approved amendments to the VAT legislation. A detailed newsletter has been prepared to highlight the main changes.
The House of Parliament on the 14th of December 2010 has voted amendments to the tax legislation. A detailed newsletter has been prepared to highlight the main changes.
In October 2010 Cyprus signed new tax treaties with Denmark and Kuwait to replace the previous treaties signed in 1981 and 1984 respectively. Furthermore, Cyprus has concluded a new tax treaty with Slovenia to replace the treaty between Cyprus and Yugoslavia which continued to be honoured by both countries. All three treaties will come into effect upon exchange of ratification instruments between the countries.
The Cyprus-Russia Round Table devoted to the recent signing of the Protocol to the Cyprus-Russia Double Tax Treaty was held exclusively for Deloitte clients, jointly by Deloitte Cyprus and Deloitte CIS tax teams, at the Four Seasons Hotel. The event was attended by the Minister of Finance of the Republic of Cyprus Mr. Charilaos Stavrakis and the Ambassador of the Russian Federation to the Republic of Cyprus Mr. Vyacheslav D. Shumsky.
Following recent negotiations on a new tax treaty between Cyprus and the United Arab Emirates, held in Nicosia from 19 to 21 October, the two sides have concluded on an agreed text and the new treaty is expected to be signed. Further details will be reported accordingly.
Protocol to Cyprus - Russia Double Tax Treaty was signed during Russian President Dmitry Medvedev's official visit to Cyprus.
According to unconfirmed reports, Vladimir Putin, the Russian Prime Minister, approved the new Protocol to the Russia-Cyprus Tax Treaty on 2 September 2010. It is expected that Dmitry Medvedev, the Russian President, will sign the Protocol during his visit to Cyprus in early October this year. If these reports are correct, the Protocol is expected to come into force on 1 January 2011.
According to the Cyprus tax laws all companies and individuals with certain types of income are obliged to declare their estimated taxable profit for 2010 before 1st August 2010.
The VAT authorities announced that the reduced rate of 5% for restaurant services and other similar services is repealed as from 30/04/10 and the reduced rate of 8% will be in effect from 1/05/10, excluding the supply of alcoholic drinks and wine that are subject to the standard rate of 15%.
The tax treaty between Cyprus and Qatar signed in November 2008 and ratified in March 2009 has come into force as of 01/01/2010.
The public interest rate with respect to overdue tax has been decreased from 8% to 5,35% p.a. The new rate is effective as of 01/01/2010.
Cyprus Tax Alerts
Cyprus and Russia signed a protocol to the 1998 tax treaty between the two countries on 7 October 2010. The most significant effect of the protocol is that, because it now includes an exchange of information provision that complies with the OECD standard, Cyprus should be removed from Russia's black list, thus enabling Russian companies to benefit from Russia's participation exemption on dividends received from Cypriot companies.
The Italian government has published a Ministerial Decree that officially removes Cyprus from the Italian CFC and tax haven black lists. The Decree applies as from 4 August 2010.
The Cyprus Parliament approved the Merchant Shipping (Fees & Taxing provisions) Law on 29 April 2010, which introduces a new tonnage tax system in Cyprus, applicable retroactively as from 01/01/2010.
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