Alert 3, 2021 - DAC6
On the 21 September 2021, the Cypriot Tax Department announced a further extension to 30 November 2021of the non-application of administrative fines for DAC6 submissions i.e. in respect to the information on reportable cross-border arrangements under the European Union Directive on the mandatory disclosure and exchange of information.
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
Type, number and country of issuance of identification document
Alert 9, 2017 - Flat Annual Fee for all Companies registered at the Cyprus Companies House
Deadline for 2017 fee: 30/6/2017According to the Companies Law, all companies registered under the Registrar of Companies are liable to pay the 2017 annual fee up to 30th June 2017 and there are no exemptions to this fee.The annual fee of €350 for 2017 is also payable by companies incorporated from 01/07/2016 – 30/06/2017.The maximum of €20.000 in the case of a Group of Companies continues to apply.The Registrar of Companies will not receive documents for Voluntary Winding Up unless they are accompanied by proof of payment of the annual fee in the amount of €350 for all the pending years.Where a company is already in Voluntary Liquidation or Liquidation by the Court then there is no obligation for the payment of €350.The fee is payable on the website of the Registrar of Companies and on the JCC website.
All content prepared by KPMG Cyprus.
Alert 1, 2015 - Provisional income tax declaration
All Cyprus registered companies have an obligation to file provisional income tax declaration and make the payment of the first income tax instalment by 31 July 2015, the latest, if they are in a taxable position.
What you should know for your provisional income tax declaration:
Income tax is assessed on a current year basis. For the calendar year 2015 a company is obliged to estimate its corporate tax for the year and file the provisional tax declaration by 31 July 2015. The estimated corporate tax payable is due for payment in two equal instalments: by 31 July 2015 and by 31 December 2015.
Revision of provisional income tax declaration
Following the submission of the provisional tax declaration, a Company may submit a revised declaration at any time until 31 December 2015. However, a revised provisional tax declaration may NOT result in a refund of the provisional tax already paid, until the final tax computations are filed and agreed upon with the Cyprus tax authorities.
Estimated taxable profits can be revised either upwards or downwards any time before 31st December, the date of the last provisional payment is due. A revision of the taxable profit upwards however will bear interest of 4,5% on completed months per year on the difference between the revised amount of the taxable profits and the amount paid on first instalment. A revision of the taxable profit downwards however cannot exceed the amount of provisional tax paid on the first instalment.
Interest and penalties
Interest on overdue tax is payable at 4.0% (4,5% prior to January 1, 2015, 4,75% prior to January 1, 2014, 5% prior to January 1, 2013, 5,35% prior to January 1, 2011, 8% prior to January 1, 2010 and 9% prior to January 1, 2007) per annum for every completed month, plus
A 5% monetary charge is imposed on tax due in case of (a) late submission of the annual tax returns, or (b) failure to settle the tax due, within a period of 30 days from the prescribed filling date
A 10% penalty is imposed on the final net tax payable if the provisional taxable income is less than 75% of the final income as determined by the audited financial statements
Following the new tax amendments published in the gazette on 31/12/2010, further penalties may apply in relation to non-compliance (€100 - €200 and an additional penalty of 5% on the tax due)
Please provide your tax advisor with an estimate of your taxable income for the year 2015. Your tax advisor with the assistance of your accountant will then prepare the provisional tax declaration and let you know of the amount due for the first instalment.