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Filing of companies temporary tax return for the year 2019

It is a requirement of the Cyprus tax system that tax on a company’s profits for the current tax year ending 31.12.2019 is prepaid.   The temporary tax returns for 2019 must be completed filed on time. Any tax thereof, if applicable, must be paid in two equal installments these being 31 July and 31 December. Late ...


Cyprus - Kazakhstan Double Tax Treaty

A double tax treaty with Kazakhstan was signed on 15 May 2019, the provisions of which will take effect on or after 1 January following the date the treaty enters into force. Currently Kazakhstan levies withholding taxes of 15% on dividends, interest and royalties. Under the Cyprus – Kazakhstan double tax treaty the ...


European Conference showcases commitment

Turning global economic challenges into opportunities and facilitating greater member collaboration were the key themes of Morison KSi’s first conference of 2019.       Download pdf


Cyprus - Andorra Double Tax Treaty

The double tax treaty with Andorra which was signed on 18 May 2018 will come into effect on 1st January 2020. The main provisions of the treaty are as follows: - Dividends, interest and royalties - no withholding tax will be levied on dividend interest or royalty payments. Capital gains – Cyprus retains the ...


Extension to the deadline for the submission of tax returns

It has been announced by the Cyprus Tax Authorities that the deadline for the submission of income tax returns for the year 2017 of a company (IR4) and self-employed persons who prepare financial statements (IR1) has been extended from 31 March 2019 to 30 April 2019. Late submission will result to a penalty of €100.


National Health Insurance System (NHIS)

As from 1 March 2019 all employees, pensioners, self-employed and persons having rental income must contribute 1,7% of their monthly income (self-employed persons must contribute 2,55%) to the National Health Insurance System (ΓεΣΥ). Employer’s contributions will be 1,85% and the State will contribute 1,65% for each ...


Brexit – VAT treatment

The United Kingdom submitted on 29 March 2017 the notification of its intention to withdraw from the European Union. In the absence of a Withdrawal Agreement, the UK will be treated as a non-EU country as of 30 March 2019. Therefore, the provision of services and the imports and exports of goods from and to the United ...


Interest on tax payments / repayments

The interest imposed on tax amounts payable / refundable for various tax years has been confirmed as follows:- From 1.1.2014 – 4,50% From 1.1.2015 – 4,00% From 1.1.2017 – 3,50% From 1.1.2019 – 2,00%


Benefits in Kind

The Tax Department has published a guide which explains the tax treatment of certain benefits offered by employers to employees and persons who hold an office. The Tax Department ...


Cyprus - Luxembourg Double Tax Treaty

A double tax treaty with Luxembourg will come into effect on 1st January 2019. The main provisions of the treaty are as follows: - Dividends - no withholding tax will be levied on dividend payments where the recipient is a company, being the beneficial owner of the dividends and holds at least 10% of the capital of ...


Cyprus credit ratings are raised to Investment Grade

Standard & Poor (one of the first credit rating agencies to downgrade Cyprus’ ratings to junk in 2012) has now upgraded Cyprus’ credit ratings to investment grade. Standard & Poor anticipate that strong economic growth through 2021, prudent policymaking, and moderate state support to the banking system will ...


Cyprus – United Kingdom double tax treaty

The new double tax treaty with the United Kingdom which had been signed on the 22nd of March 2018, has now entered into force and will come into effect on 1st January 2019. It ...


Accelerated capital allowances

An amendment to the income tax law published on 24 November 2017 extended the eligibility for accelerated capital allowances for acquisitions made during the years 2017 and 2018 ...


Accelerated capital allowances

An amendment to the income tax law published on 24 November 2017 extended the eligibility for accelerated capital allowances for acquisitions made during the years 2017 and 2018 ...


Annual Company Fee

In accordance with the Companies Amendment Law of 2012 and 2013 all companies must now pay the Annual Company Fee for the year 2012 of €350 irrespective if such companies were formed in the year 2012 or were dormant during the year 2012. The Annual Company Fee must be paid by 29 March 2013.


Common Reporting Standard (CRS)

In an effort to improve global tax transparency, the Cyprus government has adopted the standard of automatic exchange of information developed by the Organization for Economic Co-Operation and Development (OECD) known as Common Reporting Standard (CRS). Starting from 1 January 2016, the Cyprus Tax Authorities require ...


Cyprus - Luxembourg

On Monday 8 May 2017 Cyprus and Luxembourg have signed a double tax avoidance and prevention of tax evasion treaty based on the model convention of the Organisation for Economic ...


Cyprus and Barbados double tax treaty

A Double Tax Treaty had been signed between the Cyprus government and Barbados on 3 May 2017. It is expected to strengthen the economic relations between the two countries as they ...


Cyprus and Jersey double tax treaty

A Double Tax Treaty which had been signed between the Cyprus government and Jersey on 11 July 2016 becomes effective as from 1 January 2018. It is expected to strengthen the ...


Cyprus from Non – Compliant to Largely Compliant

At its meeting in Barbados on 29 and 30 October 2015 the Global Forum on Transparency and Exchange of Information for Tax Purposes of the OECD (the Global Forum) approved the supplementary report for Cyprus, which had previously been rated as Non-Compliant. Following significant changes to Cyprus’s legal framework and ...


Cyprus tax resident individual

The Cyprus Parliament voted into law on 14 July 2017 an amendment to the definition of “Cyprus tax resident individual”. As from 1 January 2017 a person who: Does not spend more than a total of 183 days in any state within a tax year, and Is not a tax resident of another state within the same tax year and who ...


Cyprus – Andorra, double tax treaty

On 18 May 2018 Cyprus signed a tax treaty with Andorra the provisions of which will come into effect on 1st January following the date the treaty comes into force. The treaty is ...


Cyprus – Iran double tax treaty

The double tax treaty between Cyprus and Iran which was signed on 4 August 2015 generally applies as from 1 January 2018. The treaty applies to taxes on income as well as profits ...


Cyprus – Russian protocol agreement

The Cyprus Ministry of Finance announced on 29 December 2016 that an agreement has been reached between the Russian Authorities and the Authorities of Cyprus for postponing the ...


Cyprus – Saudi Arabia double tax treaty

On 3rd January 2018 Cyprus signed a tax treaty with Saudi Arabia the provisions of which will come into effect on 1st January following the date the treaty comes into force. It covers the following taxes: Dividends – There is no withholding tax on dividends if the investing company holds at least 25% of the capital of ...


Cyprus – Saudi Arabia double tax treaty

On 3rd January 2018 Cyprus signed a tax treaty with Saudi Arabia the provisions of which will come into effect on 1st January following the date the treaty comes into force. It covers the following taxes: Dividends – There is no withholding tax on dividends if the investing company holds at least 25% of the capital of ...


Double Tax Treaties

The following Double Tax Treaties have been signed by the Cyprus government and will become effective as from 1 January 2016: Switzerland (signed in 2014) Iran (signed in ...


Double tax treaty with Barbados

The Double Tax Treaty between the Cyprus government and Barbados came into effect on 1 January 2018. The treaty is based on the OECD model convention and provides for zero ...


Electronic filing of VAT forms

The Commissioner of Taxation of Cyprus has notified that all persons and entities who are registered for VAT purposes in Cyprus will have to file their VAT returns electronically ...


Electronic payment of PAYE

As from 1 March 2018 the monthly payment of PAYE which was withheld by employers from their employees’ salaries can be settled only through the service offered by JCCsmart. In case of late payment of this tax liability, interest and penalties will be levied, and in such a case its settlement will only be possible at ...


Ethiopia Double Tax Treaty

A Double Tax Treaty has been signed between the Cyprus government and Ethiopia on 30 December 2015 which will become effective as from 1 January 2017.


Filing of companies temporary tax

It is a requirement of the Cyprus tax system that tax on a company’s profits for the current tax year ending 31.12.2017 is prepaid. The temporary tax returns for 2017 must be completed filed on time. Any tax thereof, if applicable, must be paid in two equal installments these being 31 July and 31 December. Late payment ...


Filing of companies temporary tax return for the year 2018

It is a requirement of the Cyprus tax system that tax on a company’s profits for the current tax year ending 31.12.2018 is prepaid. The temporary tax returns for 2018 must be completed and filed on time. Any tax thereof, if applicable, must be paid in two equal installments these being 31 July and 31 December. Late ...


Filing of income tax

The last date for the filing of the income tax return for the year 2016 for self-employed persons is as follows:- 30 June 2017 if the income tax return is filed in a hard copy ...


Greece 26% import levy abolished

In accordance with the law that was passed in March 2015 by the Greek Ministry of Finance a Greek company buying products or raw materials from a Cyprus company was deemed to have a preferential tax regime, as the corporate tax rate of the Cyprus company was below 13%, and therefore was subject to an import levy of ...


Income Tax Law – amendments in December 2015

Tax neutral treatment of foreign exchange differences which do not relate to FOREX trading According to the amended Income Tax Law, any (realized or unrealized) foreign differences (gains or losses) will be tax neutral, except for gains / losses arising from trading in FOREX. In other words, exchange differences gains ...


Intellectual Property rights

As from 1 January 2012 the cost for the acquisition or development of the intangible assets (being of a capital nature) is amortised over a five year period commencing from the ...


Intra-group back to back financing arrangements

Last month, the Cyprus Tax Department informed the Institute of Certified Public Accountants of Cyprus of its intention to terminate the application of the pre-agreed minimum profit margins of 0.125% – 0.35% on qualifying intra-group back to back financing arrangements, with effect from 1 July 2017. According to the ...


IR1 and IR4 submissions for the year 2016

The electronic filing of the individuals income tax form IR1 (only for those who prepare audited financial statements) and the companies IR4 for the year 2016 must be carried out by 31 March 2018. Failure to do so will result in a fixed penalty of €100.


Jersey Double Tax Treaty

A Double Tax Treaty has been signed between the Cyprus government and Jersey in July 2016 which will become effective as from 1 January 2017.


Latvia Double Tax Treaty

A Double Tax Treaty which had been signed between the Cyprus government and Latvia in May 2016 became effective as from 1 January 2017.


Morison KSi launches new website

Morison KSi, the global association for quality, border-free professional services, today announced the launch of its new website www.morisonksi.com


New Website Design Launched

On 3rd of January 2012, Morison Patsalides Limited launched a new website design to make it easier in finding information in connection with the services we offer. Over the next ...


Overdue taxes

Following the implementation of the law regulating the settlement of overdue taxes an amending law was published in the official government gazette on 22 September 2017, providing ...


Payment of overdue taxes by installments

The Cyprus House of Representatives approved the bill proposed by the parliamentary parties which regulates the issue of payment of overdue taxes by installments. When such an ...


Personal Income Tax return for 2016

The Commissioner for Taxation has announced the extension of the submission deadline for the 2016 personal income tax return for salaried individuals as follows: Submission ...


Personal tax return for the year 2017

The 2017 personal tax return can only be filed electronically through the Inland Revenues’ service Taxisnet. In order to achieve this, all taxpayers must enroll on Taxisnet at the earliest in order to receive the relevant user name and password which will allow them to make such filing possible.