T&L D-briefs - November 2024
In this issue, we:
- Share the latest update on the EU list of non-cooperative jurisdictions for tax purposes;
- Summarize a recent tax circular issued on Company reorganizations;
- Offer an update on the criteria for acquiring the Cypriot Citizenship;
- Present the New VAT rules for small enterprises – SME scheme;
- Cover the recent ruling from CJEU which Clarifies Price Reduction Rules: Key Insights for Traders and Consumers.
Tax Developments
International Tax Developments
Taxation: Antigua and Barbuda removed from the EU list of non-cooperative jurisdictions for tax purposes
Today, the EU Council removed Antigua and Barbuda from the EU list of non-cooperative jurisdictions for tax purposes. With these updates, the list consists of the following 11 jurisdictions:
• American Samoa
• Anguilla
• Fiji
• Guam
• Palau
• Panama
• Russia
• Samoa
• Trinidad and Tobago
• US Virgin Islands
• Vanuatu
Dividend, interest and royalty payments made to companies based in the above jurisdictions may be subject to withholding taxes in accordance with the Cyprus tax rules.
Local Tax Developments
Issuance of a Tax Ruling prior to issuing an approval for the Companies’ Reorganization plan and Application for the approval of the Reorganisation Plan
On 5 November, the Cyprus Tax Department issued Circular 5/2024 (in Greek language only) which provides clarifications with regards to the following points:
• Issuance of a Tax Ruling prior to issuing an approval for the Companies’ reorganisation plan; and
• Application and deadlines for approval of the reorganisation plan.
According to the Circular:
• A tax ruling may be requested in order to confirm the intention of the Tax Authorities to approve the Companies’ Reorganisation plan following its examination.
• The tax ruling could be submitted based on the procedure provided for in the circulars 2015/13 and 2016/13.
• The Tax Authorities could approve the Companies’ Reorganisation plan provided that the relevant application through the submission of form TD88 along with all relevant documents stated in that form and in circular 2008/12 are submitted to the Tax Authorities.
• Companies involved in the reorganisation plan could claim exemptions in their income tax return from the payment of any payable taxes due to the companies’ reorganisation, provided that the application has been submitted and irrespective of the fact that the examination of the reorganisation plan has not been finalised yet.
• The approval of the Companies’ reorganisation plan could be issued after the end of the tax examination and the payment of any taxes due by the companies which are involved in the reorganisation.
• The application for the approval of the Companies’ reorganisation plan should be submitted either by the end of the submission deadline of the Company’s Income tax return or after the deadline submission (subject to conditions). It should be noted in the case of a reorganisation, the submission deadline of the Company’s Income tax return is within the tax year the companies’ reorganisation took place.
• The surviving company could submit the application after the dissolution of some of the companies involved in the Companies’ reorganisation plan, provided that the application is submitted within the submission deadline of the Company’s Income tax return for the tax year during which the companies’ reorganisation took place.
• Applications for the approval of the Companies’ reorganisation plan which were made up to and including tax year 2022 could be submitted until 30th June 2025.
Comprehensive Update on Citizenship Requirements in Cyprus |
This article provides a comprehensive outline of the updated citizenship acquisition requirements in Cyprus, following the latest amendments to the Civil Registry Laws 2002 – 2023. The said changes aim to streamline the citizenship acquisition process, enhance existing safeguards, as well as to introduce special provisions to foreign employees who work in Cyprus, as highly skilled personnel. The piece serves as a valuable resource for understanding the evolving landscape of citizenship requirements in Cyprus.
New VAT rules for small enterprises – SME scheme |
This article outlines the new VAT rules that will be introduced as from 1 January 2025 for small enterprises conducting business activities which are taxable for VAT purposes in other EU Member States (“the SME scheme”). The SME scheme is an optional scheme which aims to reduce the administrative burden of small enterprises and helps create a level playing field as well as the economic conditions to enable their growth and the development of cross‐border trade across the EU. For more details, click on the link below.
CJEU Clarifies Price Reduction Rules: Key Insights for Traders and Consumers
The Court of Justice of the European Union (CJEU) has provided clarification on how traders should calculate and announce price reductions. The recent ruling in the Aldi Süd case underscores the importance of using the lowest price from the last 30 days as the reference point for any price reduction claims, helping to protect consumers from misleading advertisements.
For a detailed analysis of the CJEU's ruling and its implications, read the full article here.
Mark your calendar!
30 NOVEMBER 2024 |
31 DECEMBER 2024 |
Electronic submission of the income tax return for tax year 2023 for individuals (TD1) extended from 31 October 2024. |
Payment of the 2nd instalment of 2024 provisional tax. Payment of SDC (and GHS contributions if payment is made to a Cyprus tax resident individual) on rents, dividends or interest earned from sources outside of Cyprus for the last 6 months of 2024. Payment of SDC (and GHS contributions if payment is made to Cyprus tax resident individual) withheld on rent* paid for the last 6 months of 2024. *Where the tenant is a Cyprus company, partnership, the Government or a local authority there is an obligation to withhold SDC on the amount of the rent paid. Payment of the third and last instalment of the premium tax for insurance companies (life business) for 2024.
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Archive
The previous T&Legal D-briefs are available below.
T&L D-brief January 2024
T&L D-briefs November 2022
T&L D-briefs September 2022
You can also find the rest of our archived videos on Youtube.
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