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Similar to a passionate artist that commits to his/her painting, we are dedicated to our vision, which values innovative thinking and strives to offer an exceptional level of client service through expertise and professionalism. As a result, CPM is now one of the leading international providers of Fiduciary and Corporate Administration Services in Cyprus, enjoying the respect of both its clients and its competitors.

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We provide a fully comprehensive range of services to our international and local-based clients, encompassing large multinationals, banking institutions, and high net worth individuals. Services include, among others, Fiduciary, Company Administration, Secretarial, Accounting & Bookkeeping, Escrow, Payroll, and Fund Administration services. Moreover, through our associates, we offer Aviation, Yachting, and Crew Management & Administration services.

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Invest Cyprus: Moody's credit rating upgrade "exciting news" for Cyprus

(Source: CyprusBusinessNews 28/05/2024) International ratings agency Moody’s has upgraded Cyprus’ credit rating to positive from stable, which Invest Cyprus has welcomed as “exciting news” for the island. “Moody's, the renowned international credit rating agency, has upgraded the credit rating of Cyprus from stable to positive, affirming our country’s long-term credit rating of Baa2,” Invest Cyprus announced. “This development showcases the significant strides Cyprus has taken towards ensuring financial stability, enhancing investor confidence, and achieving economic growth.” It said Invest Cyprus will continue its collaborative efforts with the government and private stakeholders to further advance on this path, promoting Cyprus as a leading business hub in Europe and the broader region, and establishing it as one of the world’s best countries to live, work, and do business in. Moody’s decision to improve Cyprus’ outlook reflects its confidence in the potential for strong fiscal and debt outcomes in Cyprus over the next few years. According to Moody’s, this optimistic scenario is anticipated to result from the continuation of prudent fiscal policies and strong medium-term economic growth prospects. Moreover, the upward rating pressure could be further supported by increased confidence in the strengthening and deleveraging of Cyprus’ banking sector, which has reduced the country’s vulnerability to banking sector risks and is expected to foster robust growth and solid fiscal results. Moody’s anticipates that Cyprus will continue to achieve significant fiscal surpluses, projected at around 2.3-2.4 percent of GDP for 2024-25, although slightly lower than the government’s forecast of 2.8-2.9 percent of GDP. These surpluses are expected to further reduce the debt burden to under 65 percent of GDP by 2025. Moody’s assesses that the risks to these fiscal and debt projections are skewed towards more favourable outcomes.

‘Petrified’ non-doms poised to flee UK over Labour’s tax plans, say experts.

(Source: The Gurdian 20/05/2024)   “People are jumping on planes right now and leaving,” said Nimesh Shah, the chief executive of Blick Rothenberg, an accountancy firm that specialises in advising very rich “non-doms” on their tax affairs. “I am not being dramatic, they are leaving right now.” Shah said his clients – some of the richest people in the country – were “petrified” of plans to abolish the ''non-domicile'' regime, through which for the past 225 years wealthy people have been able to live in the UK and not pay tax on their overseas income. Labour has long promised to end the non-dom regime – which was introduced under King George III in 1799 to allow subjects who lived part of the time in far-flung colonies to avoid paying tax in the UK – and raise billions in extra taxes to pay for free breakfast clubs in schools and more hospital and dental appointments. Prospect of party closing Tory ‘loopholes’ if elected prompts some wealthy individuals to explore a move overseas  “People are jumping on planes right now and leaving,” said Nimesh Shah, the chief executive of Blick Rothenberg, an accountancy firm that specialises in advising very rich “non-doms” on their tax affairs. “I am not being dramatic, they are leaving right now.” Shah said his clients – some of the richest people in the country – were “petrified” of plans to abolish the the ''non-domicile'' regime, through which for the past 225 years wealthy people have been able to live in the UK and not pay tax on their overseas income. Labour has long promised to end the non-dom regime – which was introduced under King George III in 1799 to allow subjects who lived part of the time in far-flung colonies to avoid paying tax in the UK – and raise billions in extra taxes to pay for free breakfast clubs in schools and more hospital and dental appointments.   However, Jeremy Hunt, the chancellor, surprised the wealthy – and Labour – by stealing the policy and announcing in the spring budget the abolition of the regime from April 2025. Instead of using the expected £2.7bn of extra tax raised to fund breakfast clubs and hospital appointments, Hunt promised to cut national insurance. Labour responded by announcing plans go harder and to close ''loopholes'' in Hunt’s plan, including one that allowed those who will lose the tax-free status to still avoid paying inheritance tax on foreign assets held in offshore trusts. Shah said: “We, and our clients, expected Labour to scrap it if they won the election. But no one expected the Conservatives to rush in there and scrap it first.” He said his non-dom clients, many with fortunes stretching into the hundreds of millions of pounds, were shocked at the speed with which Hunt was “changing the rules of game and disrupting their lives when they had come to the UK to make a life here [under the non-dom rules]”. But he said Labour’s plans had the super-rich “petrified” and “actively looking at where to move to”. Shah and several other advisers contacted by the Guardian said many non-dom clients were exploring moving to Italy, which introduced a scheme through which rich people could pay a ''flat tax'' of just €100.000 no matter how much money they earned.  France, Greece, Cyprus, Malta, Portugal and Spain have similar schemes designed to attract the wealthy and internationally mobile elite. Spain’s expatriates tax regime is nicknamed the Bechham law after David Beckham, who became one of the first people to use it when he was playing for Real Madrid. Other UK-based non-doms are said to be considering moving to traditional tax havens such as Monaco, Switzerland, Dubai and Caribbean islands. However, recent academic research suggests super-rich people may not follow through with threats to move because they fear they would be “bored to death” in the often ''culturally barren'' locations.Under non-dom rules, anyone registered as non-domiciled with HMRC does not have to pay UK tax on income and capital gains earned overseas – including on company shares or cash made from selling a second home – unless they bring their money into Britain or deposit it into a UK bank account. They can retain the status for up to 15 years but there is an annual fee of at least £30,000 after seven years. There were 68,800 non-doms in the UK in 2021-22, according to the latest available HMRC data. Under Hunt’s changes, new arrivals will only be able to avoid tax on overseas income for the first four years of living in the UK. After that, they will be taxed in full on their worldwide income and gains. “I’ve got people who only moved to the UK recently, and have built their lives and businesses here and have their children in schools here,” said Shah. “But from next April they will be exposed to worldwide taxation. It is a cliff edge; it’s not surprising that they are looking at leaving.” Miles Dean, a partner and head of international tax at the tax advisory firm Andersen, said his advice to clients was simple: “If you can leave within six months, make plans to leave now. The UK is no longer safe as a tax environment.” Some of his clients, however, are not prepared to wait that long. “I spoke to two clients yesterday: one elder chap who is moving to Dubai, and another 40-year-old entrepreneur who sold a business a few years back and who is moving next month to Spain under the Beckham’s law regime,” he said. “If you look around the world there are so many places designed to attractive wealthy people and with simple schemes. These people are highly mobile, many of them already have a second home somewhere – why would they stay in the UK?” Research by the London School of Economics suggested that scrapping the non-dom regime would lead to just 0.3% – or 77 people – leaving the UK. Dean described this estimate as “ludicrous”. “The comments from me and the other advisers you’ve spoken to aren’t made up, these people will really leave. They are angry.”Andrew Goldstone, a partner at Mishcon de Reya who specialises in advising high net worth people on offshore tax and trusts, said his clients thought the Conservative and Labour plans were “entirely politically motivated and economically foolish, on the basis that the very wealthiest will leave the UK and take with them their spending, investment, jobs and businesses”. Sophie Dworetzsky, a partner advising the super-rich at Charles Russell Speechlys, said her clients thought Labour’s proposals “feel like trying to squeeze out every last drop until there’s nothing left”. She added: “We should be concerned about driving away internationally mobile individuals and the investment that could bring into the country, and the revenue raised from wealth creation.” Controversy over the non-dom tax loophole went from being a niche issue among tax experts to wider public debate after it was revealed in 2022 that Rishi Sunak's wife was using the status to avoid paying millions of pounds in tax on dividends she collected from her billionaire father’s IT business. After widespread outrage, Akshata Murty said she would pay UK taxes on all future income as her tax arrangements were not “compatible with my husband’s [then] job as chancellor”, adding that she appreciated the “British sense of fairness”. Other famous non-doms have included the steel magnate billionaire Lakshmi Mittal; the Daily Mail owner Lord Rothermere; the oligarch and former owner of Chelsea football club Roman Abramovich; Lord Ashcroft, the multimillionaire former deputy chair of the Conservative party; and Sir James Goldsmith and his children, including the Conservative minister and longtime friend of Boris Johnson, Zac Goldsmith. A Treasury spokesperson said: “While bringing in an extra £2.7bn a year for public services by 2028-29, our new simpler system will remain internationally competitive to attract the best talent to the UK. New arrivals will benefit from 100% relief on foreign income and gains for their first four years as a UK tax resident, and there will be transitional arrangements in place for current non-doms.” A Labour spokesperson said they did not believe the policy would lead to an exodus of non-doms. “We do not accept this argument,” they said. “Before the Conservatives stole Labour’s non-dom policy, they were making the exact same argument only to conveniently drop their warning sound when they adopted the policy.“Labour’s proposals are about making the tax system fairer. If you make your home and do your business in Britain, then you should pay your taxes here too.”

Chimarides: “Cyprus can become a model, low-risk jurisdiction and place to do business”

(Source: CyprusBusinessNews 20/05/2024) Economic diplomacy and good governance are essential if Cyprus is to maintain and further enhance its reputation as an attractive and reliable destination for international business and foreign investment, says Nicos Chimarides, President of the Institute of Certified Public Accountants of Cyprus (ICPAC). He recently spoke to GOLD magazine about the main challenges facing the Institute and how it aims to improve its position as a supervisory authority.  What were the first actions that you took after being elected President of ICPAC in June 2023? In the two years prior to being voted in as president of ICPAC, I had served as Vice President of the Institute, so I already had a pretty good idea of what the burning issues were as well as the strategic direction that we had agreed on as Council. Of course, the business environment is changing at lightning speed these days and we therefore need to keep evolving and reconfirming our priorities. We had discussions at Council level and agreed on various actions, some of which I am sure we will be touching upon in the course of this interview. What specific actions is ICPAC taking to assist the Government in strengthening Cyprus’ regulatory compliance framework? With economic challenges on many fronts (e.g. the impact of global warming on the tourism sector), professional and financial services are likely to continue being among the key sectors that support economic activity and job creation in Cyprus, especially for young people. Both services sectors are well equipped to rise to this challenge. The enhanced efforts and improvements to external assessments relating to the country’s introduction of laws and regulations on AML (anti-money laundering), as well as all efforts on the sanctions front, are noteworthy. Nevertheless, we need to further improve the international reputation of the financial and professional services sectors in Cyprus and more clearly demonstrate the effectiveness of the country’s legal and regulatory framework. ICPAC has proposed amendments to Cyprus’ supervisory framework that, in a structured and consistent way, would help ensure that Cyprus becomes a model, low-risk jurisdiction and a place to do business. We are currently in discussions with the Ministry of Finance, the Cyprus Securities and Exchange Commission (CySEC), the Cyprus Bar Association (CBA) and other stakeholders to ensure that Cyprus has the appropriate institutional structures in place, that are proactive and responsive enough to tackle the continuously evolving threats in the AML and sanctions space, as well as policy responses to those challenges. In March, the Ministry of Finance published documents for a public consultation on Green Tax Reform. What are the biggest challenges around this issue and how do you view the ambition of achieving a green and circular economy progressing over the next few years? As a country, we have the obligation to comply with and focus on various directives and initiatives emanating from the European Union, including the green and circular economy, the management of environmental resources and long-term sustainable development. All of these, in addition to social changes and the economic/fiscal capabilities of the state, advocate the revision of our longstanding living norms and habits and the way we traditionally operate and perceive things. This will inevitably lead to our adaptation to the new realities. The Green Tax Reform proposals are a first attempt to address these issues. The state will raise an estimated €52 million from fuel tax, an additional tax on water consumption, etc. and use these revenues to encourage and support the transition to environmentally friendly practices – net-zero hotels, electric vehicles, etc. I am sure that this is just the first of a number of green reforms to ensure that we and the whole of the EU effectively discharge our obligations to tackle the challenges emanating from climate change. What are ICPAC’s immediate short-term objectives for this year? Beyond our ongoing efforts to support the state in areas such as improving Cyprus’ international image and reputation as a reliable and attractive international business destination (as part of the country’s rebranding project), to assist in the reform of the tax framework and help with the transposition of EU directives into domestic law, the main objectives for this year include: Strengthening ICPAC’s role as a competent supervisory authority. Strengthening ICPAC’s operational capabilities by bringing in additional specialist resources and utilising technology to streamline processes and create efficiencies. Ensuring the continuous training, development and support of our members. Promoting and supporting the interests of our profession, its reputation and credibility. Improving ICPAC’s corporate governance framework by adopting international best practices. On that first objective, how can ICPAC best strengthen its position as a supervisory authority? The strengthening of the team with additional specialist resources will go a long way in the effort to further enhance our position as a supervisory authority. We need to continue working closely with the Public Audit Oversight Board (which is responsible for the supervision of the audit profession in Cyprus) to ensure, among others, the discharge of disciplinary responsibilities in a quick and fair manner. And, of course, it is of the utmost importance that in the AML and sanctions space, we agree with the state and the other regulators on the type of Financial Services Authority to be established, which will work and cooperate with all existing regulators to ensure robust and effective regulation. How can we uphold Cyprus’ reputation as an attractive and reliable destination for international businesses? The upholding and strengthening of Cyprus’ reputation of is an area on which all stakeholders, including ICPAC, need to focus continuously. The attraction of foreign investment in recent years has made a significant contribution to the country’s remarkable economic recovery following the COVID-19 pandemic. In today’s highly competitive international environment, however, any negative perception of Cyprus will clearly affect efforts to attract additional foreign investment. The rebranding effort is multifaceted: As already noted, it is imperative that we strengthen the regulatory framework in such a way that there can be no doubt about its effectiveness. Economic diplomacy needs to be enhanced with the private sector assisting the Government in improving Cyprus’ standing on the international business scene and strengthening its image as a regional business hub. Corruption/transparency is arguably one of the most important issues, not only for local citizens but also for all major and serious potential investors. It is essential that we implement good governance practices along with the appropriate and effective implementation of relevant legislation. The proper and effective promotion of Cyprus and its main benefits for international investors needs to be a well-structured and continuous effort. Invest Cyprus is perhaps best placed to take on the responsibility, coordinating role and necessary budget for this. How does ICPAC aim to attract new people to the accountancy profession? This is a very good question. Attracting new students and trainees to the accountancy profession is a matter of primary concern for ICPAC, as it touches upon the future of the profession. As such, in the last few years, we have placed particular emphasis on conducting an intensified and broader promotion of the accountancy profession to the young generation. Significant work is already being done in schools and universities, in cooperation with accountancy firms. The important role of qualified accountants in the business world and the contribution that our members and their firms make to the economy are strongly highlighted, as is the increasing use of technology in all aspects of our work, be it in the public service, in the profession or in business.  

Invest Cyprus cultivating significant potential investment from Lebanese and French companies

(Source: InBusinessNews 22/03/2024)   French and Lebanese companies active in Lebanon and France, including members of the Chambre de Commerce Franco-Libanaise- French-Lebanese Chamber of Commerce are showing great interest in investing, expanding their activities and establishing offices in Cyprus. mainly in the fields of health and medical care, technology and energy, Invest Cyprus has revealed. This particular market is considered to be of the utmost importance for Cyprus, with the specific potential investments bringing about multiple benefits for the economy of the island if implemented. France’s great influence within the EU and the fact that Cyprus is geographically the closest European country to Lebanon should also be taken into account as this opens the way for Cyprus to emerge as a bridge for investment and business cooperation for the entire region. An Invest Cyprus event in Beirut The advantages of Cyprus as an investment destination were highlighted by Invest Cyprus to the members of the French-Lebanese Chamber of Commerce, among notable businessmen and investors, at an event recently held by the organisation in Beirut. More specifically, following an invitation from the French-Lebanese Chamber of Commerce and with the immediate response of Invest Cyprus, the event was held with the aim of deepening Cyprus' relations with the Lebanese market and French and Lebanese companies. During the event, the CEO of Invest Cyprus, Marios Tannousis, presented the Cypriot investment and business environment as well as the incentives for investing in Cyprus to business executives and distinguished members of the French-Lebanese Chamber of Commerce. Existing investors from the region in Cyprus were present during a roundtable discussion that took place, and narrated their experiences through testimonials. Among them were the companies Murex and Kassatly Group as well as a company engaged in the field of medical care. Shadi Karam, the former Chairman of AstroBank, also participated. The CEO of Invest Cyprus also took part in the roundtable and answered questions, which had to do with the areas in which the potential investors have an interest in Cyprus, related procedures and the tax regime. It is worth noting that the Ambassador of Cyprus to Lebanon, Maria Hadjitheodosiou, also addressed the event. The audience consisted of more than 50 businessmen and executives, members of the French-Lebanese Chamber of Commerce, active in various sectors of the economy. They asked for a mission to be organised in Cyprus Speaking to InBusinessNews, the CEO of Invest Cyprus, Marios Tannousis, indicated that companies active in the health and medical care sector, as well as technology and energy, have shown a great interest and intention to invest in Cyprus. "This particular market is very important and as Invest Cyprus we want and seek to strengthen their investments in Cyprus," he said. Tannousis emphasised the importance of this perspective, as France has significant influence as a country, especially in the EU, while there are very strong French investments in Lebanon. "Furthermore, because France is a large and important country and Cyprus is part of the EU. and at the same time the closest European country to Lebanon, we are given the opportunity to cooperate and make Cyprus a bridge of cooperation for investments and businesses between France, Lebanon or even the wider region. On top of that, the already excellent relations we have with France also help. If we use this opportunity properly, our economy will be strengthened," he added. It is worth noting that due to the great interest recorded, the companies requested that a French-Lebanese Chamber of Commerce mission be organised in Cyprus, so that potential investors can verify facts and be further informed through meetings with competent bodies and officials. "In this way we will be able to proceed with further collaborations and strengthen the business and investment partnerships that Cyprus has with France and Lebanon,” concluded the CEO of Invest Cyprus.

Alert , 2022 Employment Tax Incentives-New income tax exemptions for first employment in Cyprus

On 14 July 2022, the House of Representatives voted amendments to Articles 8(21) and 8(23) of the Income Tax Law (ITL) related to the income tax exemptions granted to employees who take up first employment in Cyprus. The amended provisions of the Law have been published in the Government Gazette on 26 July 2022. These amendments form part of a wider strategy of the Cyprus Government for attracting both international investments and diversified talent. Moreover, such amendments complement the recent changes in the migration rules which simplify and expedite the relocation of staff and their families from EU and non-EU countries. The new 50% exemption (Article 8(23A)) The provisions of the new Article 8(23A) of the ITL apply as from 1 January 2022 for individuals who take up first employment in Cyprus commencing on or after 1 January 2022 provided that the following conditions are satisfied:   • The individuals were not tax resident of Cyprus for a period of at least 10 consecutive years prior to the commencement of their employment in Cyprus; and • Their annual remuneration from exercising their employment in Cyprus exceeds the threshold of €55.000.   The exemption is granted in any tax year where the €55.000 threshold is satisfied. The exemption can also be granted (subject to special rules) in the first and final tax year as well as in cases where the annual remuneration fluctuates below the annual threshold of €55.000.   The exemption is available once in a lifetime for a maximum period of 17 years starting from the tax year of taking up first employment in Cyprus.   It should be noted that this exemption does not require the individuals to become Cyprus tax residents.   Moreover, individuals claiming this exemption cannot also claim the existing 50% exemption (Article 8(23)), the existing 20% exemption (Article 8(21)) or the new 20% exemption (Article 8(21A)).   Transitional provisions   Moreover, individuals who took up employment in Cyprus prior to January 2022, may also be eligible to transition themselves and claim an exemption as per the new Article 8(23A) as shown below:   Year of commencement of 1st employment Eligible persons   Prior to 2022 Individuals who benefited from the existing 50% exemption (Article 8(23)) and continuously exercised their employment in Cyprus up to and including 2021     Between 2016 and 2021 Individuals whose annual remuneration from first employment in Cyprus exceeded €55.000 Individuals whose annual remuneration from first employment in Cyprus did not exceed €55.000 and within 6 months, starting from 26th July 2022, their remuneration will exceed the €55.000 threshold   Individuals currently benefiting under the existing 50% exemption (Article 8(23)) and do not fall within any of the cases mentioned above will continue to benefit from the existing 50% exemption up until the completion of the 10 year period. It should be noted that the provisions of Article 8(23) apply for individuals taking up first employment in Cyprus up until 26th July 2022.   The new 20% exemption (Article 8(21A)) Under the provisions of Article8 (21A), which are applicable as from 26th July 2022, individuals who take up first employment in Cyprus after 26th July 2022 are eligible to claim a 20% exemption on their annual remuneration (capped at €8.550) for a maximum period of 7 years.   Individuals claiming the new 20% exemption should have been non-Cyprus tax residents for at least 3 consecutive years prior to the commencement of first employment in Cyprus and must have been employed outside of Cyprus by a non- resident employer.   The exemption can be claimed in the tax year following the tax year of commencement of first employment in Cyprus (i.e. if first employment commences in 2022, the 20% exemption is granted from tax year 2023 up until tax year 2029).   Individuals already benefiting from the 50% exemption will not be eligible to additionally claim the 20% exemption.   Individuals who are currently eligible under the existing 20% exemption (Article 8(21)), and who are not eligible for the transitional provisions (mentioned above) will continue to benefit from the existing 20% exemption up until the completion of the 10 year period.

Alert 2, 2021 UBO Register of Trusts and of similar legal arrangements

Cyprus implements Beneficial Ownership Register for trusts and similar legal arrangements Further to the introduction of the register of Beneficial Owners (BOs) for companies, on the 18 June 2021 Cyprus has introduced a similar register for BOs of Trusts and other similar legal arrangements (the “Trust Register”) to be kept electronically by the Cyprus Securities and Exchanges Commission (CySEC) which is the supervisory authority for the implementation and operation of the Trust Register. The Trust Register was implemented through CySEC’s Directive for the prevention and suppression of money laundering and terrorist financing (register of beneficial owners of express trusts and similar legal arrangements) (the “Directive”) which provides information and guidance in relation to the registration of express trusts and similar legal arrangements in the Trust Register. The Directive applies for express trusts which are defined as trusts created expressly by a settlor at his own will. Trusts arising by operation of law as well as trusts for which the settlor shows no clear intention for their creation are not considered to be express trusts. Registration of an express trust should take place in cases where: the trustee is located or residing in the Republic of Cyprus; or the trustee, which is located or residing outside EU, establishes a business relationship or acquires immovable property in Cyprus on behalf of the express trust. Information to be submitted The following information must be submitted for registration: For the trusts and other similar legal arrangements Name of the trust Country and date of establishment Applicable law Termination date (if applicable) Country in which the trustee is established or resides and details of his address In case the trustee resides outside the EU and establishes a business relationship on behalf of the trust in Cyprus, the date of commencement of the business relationship, the name of the person with whom such relationship is established together with the document which governs such a relationship In case the trustee resides outside the EU and acquires immovable property on behalf of the “Stated” (expressed) trust in Cyprus, the registration number and address of the immovable property together with the title deed of the property Any other information and/or supporting documentation requested by CySEC for identification purposes BO/s (trustee, settlor, protector, beneficiaries) Name, surname and father’s name Date and place of birth Nationality/ies Residential Address Type, number and country of issuance of identification document Date of death (where applicable) Date on which the person became beneficial owner The nature and extent of the rights which are directly or indirectly held by the UBO The role of the UBO in the trust or in a similar legal arrangement Any other information and/or supporting documentation requested by CySEC for identification purposes In case the Trust has one or more classes of beneficiaries, the following information should also be provided: Description of the class of beneficiaries and its members the nature and extent of the rights of each class of beneficiaries Deadlines and Charges A six-month period has been granted for existing trusts to be registered. For new trusts falling under either of the two cases, as well as for any changes in the information submitted to the Trust Register for trusts already registered, there is a time limit of 15 days from the date of appointment of the trustee or the date on which such changes were effected. CySEC has set a scale of charges for registration and renewal of registration of trusts as well as for retrieving information. Eligible persons/authorities for having access in the UBO trust register Eligible for having access without any charge to the information entered in the Trust Register will be the trustees and or any other equivalent person who has entered such information thereinto, as well as other competent authorities like the Unit for Combating Money Laundering and Terrorist Financing, the police, the Customs’ Department, and the Tax Department. Furthermore, any person or organization who may demonstrate a legitimate interest and who provides sufficient evidence in this respect , may have access to such information under a fee if the relevant application submitted to CySEC is approved. The procedure is set as follows: CySEC acknowledges with the trustees and or the equivalent person of the receipt of an application from a certain person/authority and the fact that they have initially established that indeed such a person or authority has a legitimate interest. If the trustees do not file written representations within 10 days as of the date it has received CySEC’s acknowledgment, then such a person and or authority will be given access to the information kept in the Trust Register.

Alert 2, 2021 UBO Register Of Trusts And Of Similar Legal Arrangements

Cyprus implements Beneficial Ownership Register for trusts and similar legal arrangements Further to the introduction of the register of Beneficial Owners (BOs) for companies, on the 18 June 2021 Cyprus has introduced a similar register for BOs of Trusts and other similar legal arrangements (the “Trust Register”) to be kept electronically by the Cyprus Securities and Exchanges Commission (CySEC) which is the supervisory authority for the implementation and operation of the Trust Register. The Trust Register was implemented through CySEC’s Directive for the prevention and suppression of money laundering and terrorist financing (register of beneficial owners of express trusts and similar legal arrangements) (the “Directive”) which provides information and guidance in relation to the registration of express trusts and similar legal arrangements in the Trust Register. The Directive applies for express trusts which are defined as trusts created expressly by a settlor at his own will. Trusts arising by operation of law as well as trusts for which the settlor shows no clear intention for their creation are not considered to be express trusts. Registration of an express trust should take place in cases where: The trustee is located or residing in the Republic of Cyprus; The trustee, which is located or residing outside EU, establishes a business relationship or acquires immovable property in Cyprus on behalf of the express trust. Information to be submitted The following information must be submitted for registration: For the trusts and other similar legal arrangements Name, surname and father’s name Date and place of birth Nationality/ies Residential Address Type, number and country of issuance of identification document

Alert 1, 2021 Cyprus law to implement Mandatory Disclosure Rules enters into force

On 31 March 2021, the law (Ν. 41(Ι)/2021, the Law) amending the Law on Administrative Cooperation in the field of Taxation (Law N. 205(I)/2012) was published in the Official Gazette of the Cyprus Republic and entered into force. The Law transposed the European Union (EU) Directive (referred to as DAC6 or the Directive) into domestic law. The Law entered into effect as of 1 January 2021, however, it will have a retrospective effect for reportable cross-border arrangements concluded on or after 25 June 2018 provided that one of the prerequisite triggering events is met. The final Cypriot Mandatory Disclosure Rules (MDR) legislation is broadly aligned with the requirements of the Directive with minor differences. Further to the Law, guidance notes will be issued by the Cypriot Tax Department (CTD) to provide clarity over the interpretation of key terms of the Law. The Directive requires intermediaries (including EU-based tax consultants, banks, asset managers, corporate administrative service providers, insurance companies and lawyers) and in some situations, taxpayers, to report certain cross-border arrangements (reportable arrangements) to the relevant EU member state tax authority. This disclosure regime applies to all taxes except value added tax (VAT), customs duties, excise duties and compulsory social security contributions. Cross-border arrangements will be reportable if they contain certain features (known as hallmarks). Under the Directive, an arrangement is reportable if: The arrangement meets the definition of a cross-border arrangement; and The arrangement meets at least one of the hallmarks A-E specified in Annex IV of the Directive and the main benefit test (MBT), where applicable. Administrative fines for non-compliance Breach   Penalty (one-off administrative fine per entity and arrangement) Failure to report a Reportable Cross Border Arrangement (RCBA)   €10.000-20.000 Delay in reporting an RCBA   Up to 90 calendar days: €1.000-5.000 More than 90 calendar days: €5.000-20.000 Filing inaccurate or incomplete or misleading report of an RCBA   €1.000-10.000 Failure to notify other intermediaries or the relevant taxpayer by the intermediary regarding the exemption due to Legal Professional Privilege (LPP)   €10.000-20.000 Delay in the notification of other intermediaries or the relevant taxpayer by the intermediary regarding the exemption due to LPP   Up to 90 calendar days: €1.000-5.000 More than 90 calendar days: €5.000-20.000 Failure to provide the Cypriot Tax Department with information or documents for an arrangement within 14 days from the date of reception of written notice   €1.000-10.000 Failure to pay the administrative fines imposed/Continuance of the relevant breach   Increase of imposed fine up to €20.000   As implied by the provisions of the Law, penalties will also apply for intermediaries/relevant taxpayers who have breached their reporting or notification obligations, as prescribed in the Law, for the transitional period. On 4 June 2021, the CTD announced the non-application of administrative penalties for all filings effected by 30 September 2021 in respect of RCBAs made or to be made from 25 June 2018 up until 31 August 2021. As from 1 September 2021, RCBAs should be reported within 30 days from the rom the relevant triggering event. Remarks Cyprus intermediaries and taxpayers with cross border arrangements should review their existing procedures to continuously monitor their disclosure obligations under the DAC 6, ensuring compliance and minimising the risk of monetary fines.

Mar Sat, 2022 CPM in Cyprus South Africa Business Forum
CPM was a proud sponsor of the Cyprus South Africa Business Forum, which took place between 11 and 18 September in the two major cities of South Africa, Johannesburg and Cape Town, with the mission to promote business cooperation and entrepreneurial synergies amongst the business circles of Cyprus and South Africa. The Business Forum, which was co-organized by the Cyprus South Africa Business Association, the Cyprus Chamber of Commerce and Industry and the Ministry of Energy, Trade, Industry and Tourism, CIPA, CIFA and the Cyprus Stock and Exchange Commission, involved the participation of more than 30 Cypriot businesses, including CPM, and more than 100 South African businesses as well as a number of officials from CCCI and the Ministry of Energy, Trade, Industry and Tourism, including the Ministry’s General Manager. During the Forum, Cyprus was presented as an EU jurisdiction of choice as well as a Business and Investment Funds Center. Special emphasis was placed on the opportunities for business development in the EU and other nearby non EU countries having Cyprus as an EU base.   CPM had the opportunity to meet with a number of prestigious law firms, accounting firms and service providers in both Johannesburg and Cape Town and to discuss particular ways of promoting Cyprus as a financial center. CPM would like to thank the organisers and participants for a most successful Business Forum. CPM is a leading international service provider operating from Cyprus offering the best possible tailor-made corporate management and administration solutions to each of our institutional, corporate and private clients in a multitude of international jurisdictions. This year, CPM celebrates 20 years of mastering the Art of Making Business! CPM is regulated by the Cyprus Securities and Exchange Commission under license number 56/196.
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