T&L D-briefs May

Stay on top of tax and legal (T&L) issues that impact your business through our bi-monthly T&L D-briefs.

 In this issue, we: 

• cover the taxation of employees’ share option schemes and share potential developments;
• provide an overview of the upcoming enhancement of the Transfer Pricing regime in Cyprus;
  
• outline the tax and other obligations that an individual should consider, when intending to dispose immovable property in Cyprus;
• give a summary on the procedure for submitting relevant information to the Cyprus Beneficial Ownership Register for Express Trusts;
• share insights of a Supreme court case that created a precedent for the Cyprus legal order, regarding companies under administration.

Τaxation of Employees share option schemes

Watch our Director, Yiannakis Frangous, briefly explain the tax treatment of share option schemes, a popular remuneration tool for incentivising employees.

Agenda

Local tax developments

• Τransfer pricing (TP) developments
  
  A new regime for TP compliance is expected to be voted soon by Parliament, that will modernise and bring the Cyprus TP regime in line with international standards. The new rules will provide a clear framework on how taxpayers should be documenting their intra-group transactions to support their adherence to the arm’s length principle. 

Business and other corporate matters

• Beneficial Ownership Register of Express Trusts and Similar Legal Arrangements 
  
  As from 17 May 2022, the online platform for the Cyprus Beneficial Ownership Register of Express Trusts and Similar Legal Arrangements is in operation. 

Deloitte articles

• What taxes is an individual subject to, when disposing immovable property in Cyprus?
  
  Regardless of an individual’s tax residency status, the disposal of immovable property in Cyprus brings about some tax consequences.
  
  This article summarises the tax and other obligations that an individual should consider, when intending to dispose immovable property in Cyprus but also the taxes that a buyer is liable to, when acquiring immovable property in Cyprus. 

• Supreme Court in Cyprus finds service of pleadings to the directors of company under administration improper
  
  The Supreme Court held on appeal that the board of directors of a company under administration does not have the power or capacity to accept service of any documents on behalf of a company under administration. 
  
  Service of the documents must be made to the company’s authorised representative, that is the company’s administrator/receiver or be served to the company’s registered office.
  
  The successful appellant (the company under administration) was represented by Gaston Hadjianastassiou of Hadjianastassiou, Ioannides LLC (member of the Deloitte Legal network).

Contact Us

For general queries and comments on Tax Webcasts, please send an email to cyprusTLdbriefs@deloitte.com.