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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.

Interior Ministry announces naturalisation criteria as Cyprus aims to attract highly-skilled overseas talent

(Source: InBusinessNews 22/03/2024) The qualifications required to apply for naturalisation, according to the provisions of the Civil Registry (Amendment) Law of 2023, have been announced by the Ministry of Interior. More specifically, according to the Ministry, the qualifications for naturalisation, pursuant to Article 111B(1) of the Civil Registry Law, which must be met cumulatively to for an application for naturalisation to be submitted, include: Legal and continuous residence for 12 months immediately preceding the date of application, with periods of absence not exceeding 90 days in total not interrupting the stated period of time, as well as Legal residence for cumulative periods of no less than 7 years during the 10 years immediately preceding the 12-month period. The required criteria also include: Good character, sufficient knowledge of the Greek language at level B1, The sufficient knowledge of basic elements of the modern political and social reality of the Republic, Suitable accommodation and stable and regular financial resources, The means for the support of himself and the members of the applicant's family, as well as The intention to reside in the Republic. The Ministry then notes that according to article 111B(2) the qualifications are differentiated for persons residing in the Republic for the purpose of highly skilled employment in companies, which are determined by the Decision of the Council of Ministers no. 92.018 and date 15/10/2021, regarding the Strategy for Attracting Companies to Activate and/or Expand their Activities, as well as for their family members. As stated, this category includes: Businesses/companies of foreign interests operating in the Republic of Cyprus and operating independent offices in Cyprus, which are housed in suitable premises, separate from any private residence or other office, Cypriot shipping companies, Cypriot hi-tech/innovation companies (with products related to the aerospace industry, computers, information technology and communication, pharmaceuticals, biomedical equipment, research and development equipment, electrical machinery, chemicals, non-electrical machinery), Cypriot pharmaceutical companies or Cypriot companies active in the fields of biogenetics and biotechnology and companies that are already registered in the Register of Foreign Companies of the Civil Registry and Migration Department. It is added that the qualifications for the persons falling under the provisions of article 111B(2), as well as for their family members, which must be met cumulatively, are: Legal and continuous residence for 12 months immediately preceding the date of application, with periods of absence not exceeding 90 days in total not interrupting the stated period, and Legal residence for cumulative periods of no less than 4 years or 3 years, depending on the level of knowledge of the Greek language, i.e. A2 or B1 respectively, during the immediately preceding 10 years from the 12-month period, with an absence that does not exceed a total of 90 days not to interrupt the mentioned time period. Good character, sufficient knowledge of the Greek language at level A2 or B1, sufficient knowledge of basic elements of the modern political and social reality of the Republic, suitable accommodation and stable and regular financial resources sufficient for the upkeep of the applicant and his family members are also required, as well as the intention to stay in the Republic More information on naturalisation qualifications, the supporting documents to be submitted, as well as the application form, is available on the Interior Ministry's website, the statement concluded.

Larnaca is redefining itself for tourism and investment

(Source: Cyprus Mail 26/02/2024) The city of Larnaca is emerging as an attractive business destination quite profitable for every professional, entrepreneur and investor.  The city, the neighbouring communities and the sea area that surrounds it, offer several potential opportunities that can be easily identified by anyone interested.   Larnaca is developing at a steady rate. It is a safe choice without risks and with a high financial return. It is considered suitable for any type of investment and has a promising future.  Primarily it offers safety. Larnaca is central relative to the island’s other districts. It does not have a large population and does not present any particular traffic delays or inconveniences. Distances are close. Next to the seafront it has its own port and marina, as well as the international airport with worldwide connectivity. It is a very welcoming and quiet place, with ideal climatic conditions for families and business activity, both from EU countries and from third countries, providing all the advantages enjoyed by the local population. Larnaca has good infrastructure as well as capable human resources. Any company or business can use the city and its suburbs for a registered office for the purpose of conducting local or offshore activities. Business costs, rents and property prices are much lower than in other cities in Cyprus and new modern or renovated office space, commercial premises and accommodation such as houses and apartments are constantly being built. The service sector is distinguished by its high professionalism and low cost. There are in the city a large number of consultants, lawyers, accountants, auditors, doctors and other professionals to support any business or company that chooses Larnaca. The use of the English language on a wide scale and there are significant opportunities for investment. Large companies prefer the city. Cyprus is also a country belonging to the EU with a very low corporate tax rate of 12.5 per cent ​​and with a large number of bilateral agreements for the avoidance of double taxation.   More and more companies are active in Larnaca, such as in the construction sector, in the creation of photovoltaic parks, technology, services and tourism. Well-known company names are involved in the hotel and catering sector, greatly increasing the quality of the product offered. Investment opportunities in the city centre could see it developed into a modern ‘Monastiraki’. The same goes for the coastal area of ​​the Larnaca-Dhekelia road, in neighboring communities and in the mountain areas. There is also the added advantage of the airport, the port, the marina, the industrial and small industry area and the free trade zone. Attracting appropriate investments will be beneficial to all stakeholders and will create such development that the entire seafront operates all year-round to serve the interests of every entrepreneur, visitor, local or foreign resident. Larnaca has a very large and safe sea sandy area from the beach front of Phinikoudes to Dhekelia, extending to the area of ​​Mackenzy, Meneou to Alaminos and Zygi. There are also several attractions in the city such as Agios Lazarus church, the castle, the Salt Lake and Hala Sultan tekke mosque, and the Patticheio theatre and park that are being upgraded and beautified to attract more visitors with entertainment and events. With the active participation of entrepreneurs, investors, citizens and local authorities, Larnaca is redefining itself on the Cypriot and European map as a development-friendly, safe and prosperous city. There is plenty of planning and a vision to exploit the comparative advantages it offers in order to become a preferred investment and tourist destination.

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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