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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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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.

Updated double tax treaty between Cyprus and France

The Cyprus Ministry of Finance has announced the signing of an updated treaty for avoidance of double taxation between Cyprus and France on 11 December 2023. The new treaty will be activated upon the exchange of the ratification instruments, and once in force and effective, will replace the 1981 tax treaty between the two countries. The revised Treaty was considered necessary for the purpose of being aligned with the latest international rules and developments on taxation, and to further enhance the economic ties between the two countries. According to the provisions of the agreement, it covers income tax, corporate tax, a special contribution for defense, and capital gains tax. It is based on the latest edition of the OECD Model Convention for the avoidance of double taxation, it incorporates the latest standards with regards to the exchange of information, mutual agreement procedure, arbitration, principal purpose test, and takes into consideration the recommendations of the BEPS action plan. Main provisions of the Treaty are as follows: Dividends: 0% withholding tax if the beneficial owner of the dividend is a company holding directly at least 5% of the capital of the dividend-paying company throughout a 365-day period that includes the day of the payment, and 15% in all other cases. Interest: 0% withholding tax Royalties: 5% withholding tax Capital gainsderived by a resident of a Contracting State from the alienation of shares (or comparable interests) in property-rich companies may be taxed in the other Contracting State if, at any time during the 365 days preceding the alienation, such shares (or comparable interests) derive more than 50% of their value directly or indirectly from immovable property situated in that other State.

Yoshio Yamawaki: It is important to make Japanese companies aware of Cyprus’ advantageous FDI environment

(Source: Cyprus Business News 29/02/2024) In a recent interview with GOLD magazine, Japanese Ambassador Yoshio Yamawaki explored the potential synergies in shipping, innovation and space exploration between the two nations, and expressed his pleasure at the Cypriots’ appreciation of Japanese culture (and sushi) – while expressing his own delight at the local cuisine and particularly souvlaki. He is also of the opinion that in order to increase foreign direct investment (FDI) from Japan, it is important to make Japanese companies aware of Cyprus’ advantageous foreign investment environment, which includes a stable regulatory system as an EU member state, a conducive environment for talented people from abroad, and English-speaking local staff with knowledge and experience of the financial sector, laws and regulations. In 2023, Cyprus and Japan strengthened their bilateral ties in the maritime sector, with the appointment a Cypriot shipping attaché in Japan under consideration. Can you provide more details of initiatives that are poised to foster shipping synergies between the two countries? The Cypriot Deputy Minister of Shipping, Marina Hadjimanolis, visited Japan in January and attended the naming ceremony of two vessels ordered by a Cypriot shipowner from a Japanese shipyard. Japan has the third-largest shipbuilding industry in the world and shipbuilding will continue to be an important industrial sector for economic relations between Japan and Cyprus. In April, the “Sea Japan” shipping exhibition will be held in Tokyo, with the theme “Clean Energy”, and many Cypriot companies are expected to participate. The development of the next generation of marine energy is a key issue for the shipping industry and one that Japan and Cyprus share. I hope to see synergies between the two countries in the development of new technologies in this sector. I am aware that the Cyprus government is considering the appointment of a maritime officer at the Embassy of Cyprus in Tokyo. We hope that the realisation of this plan will accelerate exchanges and cooperation between the two countries in the field of shipping.   Despite low Foreign Direct Investment flows between Cyprus and Japan, there have been some notable events in recent times, including the inauguration of a substantial Limassol branch of MUFG Investor Services. Do you foresee more similar opportunities arising? And how can the relationship between Cyprus and Japan evolve into one oriented towards increased FDI? MUFG chose Cyprus as an investment destination from several candidate cities around the world and, in my opinion, this is due to several reasons, such as Cyprus’ stable regulatory system as an EU member state, a conducive environment for talented people from abroad, and English-speaking local staff with knowledge and experience of the financial sector, laws and regulations. The reality is that Japanese companies are unaware of the advantages and strengths of Cyprus. To increase FDI from Japan, it is important to make Japanese companies aware of Cyprus’ advantageous foreign investment environment. At the same time, the Cypriot business community does not have significant contacts with Japanese companies or the Japanese market. The Cyprus Chamber of Commerce & Industry (CCCI) established a new Cyprus-Japan Business Association in 2021 and we are aware that the CCCI and the Ministry of Energy, Commerce & Industry are planning to send a business mission to Japan in April this year. Expanding such opportunities for mutual exchanges in the business community would be a good first step in strengthening relations. From a business and investment standpoint, what are the most important areas that Japan and Cyprus could pursue collaboratively? Research and Innovation (R&I) is certainly an area in which Japan and Cyprus could cooperate. Last year, the Director General of the Cyprus Research & Innovation Foundation (RIF), Theodoros Loukaidis, participated in the Science and Technology in Society (STS) forum in Kyoto. Following this, the Japanese Ministry of Education, Culture, Sports, Science and Technology (MEXT), together with R&I support organisations, visited RIF, universities and research institutions in Cyprus last autumn, initiating discussions to promote mutual cooperation in this field. Cyprus is keen to promote startups based on advanced technologies, focusing on the transfer of research results from universities and research institutes to private companies to enhance innovation. Fostering startups is also an important policy issue for the Japanese government, which formulated a five-year plan for this purpose in 2022. Connecting universities and research institutes with industry to commercialise the results of their research is an important factor in Japan. Through their common policies, Japan and Cyprus can cooperate in the field of Research and Innovation. Stimulating the exchange of human resources between the two countries in this area and facilitating joint research is of primary importance. It would also be effective to share policy tools and best practices for fostering startups between the two countries. After landing its Smart Lander spacecraft on the Moon in January, Japan became only the fifth country in the world to do so. It has also been instrumental in the Artemis Accords, which aim to promote safety and peace in space exploration. What aspirations does Japan harbour for this new-age frontier? The Japan Aerospace Exploration Agency (JAXA) recently landed a probe on the Moon for the first time. It achieved a “pinpoint landing” with a margin of error of less than 100 metres, demonstrating its superior technological capability. In its Basic Plan for Space Policy, Japan has announced its programme to promote scientific research on the Moon as part of its scientific exploration of space. Japan is participating in the ARTEMIS mission, which aims to realise sustainable lunar exploration and is promoting internationally coordinated research and development. It also aims to be the first country after the US to place an astronaut on the Moon in the late 2020s. Japan’s space strategy is not limited to science and exploration, pursuing a wide range of space policies, including using space technology to solve global problems, promoting the space industry and contributing to space security. Last year, I visited the Cyprus Space Exploration Organisation (CSEO). I found that there are areas of common interest between Japan and Cyprus, such as Earth observation from satellites. I hope that cooperation between CSEO and Japanese space agencies will develop in the future. Cyprus aspires to establish itself as an innovation cluster and, in your country, initiatives like the University of International Research Excellence programme and a massive US$82 billion university endowment fund indicate the strong desire to create an environment conducive to innovation. How do you expect these initiatives to help Japan solve its problems and boost competitiveness? One of Japan’s current problems is the decline of research capability in universities and research institutions. About 15 years ago, Japan ranked fifth in the world in the number of high-impact research papers but the latest data shows that its ranking has fallen to 13th place. R&D capacity, especially in universities, is a driving force for social and economic development and a source of innovation. The Japanese government is actively addressing the improvement of R&D capability as a key policy challenge. Although research funding is essential as an input for improving research capabilities, the growth rate of R&D investment in Japan has been sluggish in recent decades compared to that of western countries. Another problem is that the number of young students entering Ph.D. programmes is declining. Encouraging young researchers and improving the research environment for researchers are also key issues. In light of this, a new system has been launched to support universities conducting world-class research by selecting universities of international excellence and creating a 10 trillion yen (approx. €63 billion) fund to be supported by the investment income from the fund. The challenge of building truly internationally competitive universities through this system is now entering the main stage. Many universities in Japan support local industries and economies. Supporting these universities is also essential. The opening of Kampos Sakura Park in 2022 serves as a symbolic representation of the enduring friendship between Japan and Cyprus. What additional opportunities for cultural cooperation are currently in progress or under consideration? In cooperation with the people of Kampos village, we opened a cherry blossom park two years ago. Last year, we increased the number of saplings and 45 cherry trees have grown. Although the trunks are still thin and small in stature, they produced beautiful cherry blossoms last April. We look forward to seeing them grow into magnificent cherry trees in the years to come. We would like to continue to nurture the Sakura Park as a symbol of exchange between Japan and Cyprus. To introduce Japanese culture, the Embassy of Japan held several events last year, including an Origami workshop, a Shakuhachi concert, and a Japanese film festival. We would like to continue our efforts to familiarise Cypriots with traditional Japanese culture and arts. In Japan, artists and creators are active not only in traditional culture and performing arts, but also in various other fields such as music, painting, theatre and ceramics. Japanese anime and manga are proud representations of a new culture that is highly popular, particularly among the youth, even in Cyprus. We would like to continue to provide opportunities to share and enjoy a wide variety of Japanese culture and arts with the people of Cyprus. What can you tell us about the number of Japanese citizens residing in Cyprus and their main occupations? In Cyprus, there are about 100 registered Japanese residents, making it a small community. Last year the number was about 80, so it has slightly increased. They are businesspeople, UN staff, foreign students, etc., but there are also some Japanese who are married to Cypriots or foreigners and live in Cyprus. Although a small community, we hold an annual New Year’s party to celebrate and deepen our friendship and there are also many cultural events in which Japanese people living in Cyprus participate. Last year, a traditional Japanese tea ceremony demonstration was held for the first time, and the lecturer was a Japanese woman living in Cyprus. Several creators from Japan exhibited at the Larnaca Biennale last autumn and Japanese artists living in Cyprus also took part. Although the number of Japanese citizens living in Cyprus is small, they have actively contributed to cultural exchanges with Cyprus. It is delightful to note that many Cypriots love Japanese culture. The Ikebana Club of Cyprus has been holding ikebana workshops for a long time and many people who love ikebana gather there. There are also Cypriots who enjoy haiku, the shortest form of Japanese poetry in the world – Cypriots who write excellent haiku in Greek are honoured every year. It can be said that all these individuals form a Japanese community in a broad sense. Two years ago, the Japan-Cyprus Friendship Association was established. Together with Cypriots who love Japan, I would like to deepen exchanges between Japan and Cyprus. How do you perceive Cyprus’ lifestyle and culture? Are there specific aspects of local life that have left a lasting impression on you during your time here? Over a year has passed since I took up my post in Cyprus. I have thoroughly enjoyed the cuisine and lifestyle of Cyprus, exploring its cities, villages, mountains, beaches, and archaeological sites, and experiencing the beauty of this country for a full year. One thing I particularly love about Cyprus is the abundance of sunny days. Even if I have some worries or problems, the clear and sunny weather brightens up my mood. The consistent sunshine in Cyprus contributes to the smooth progress of my work. I also enjoy Cypriot cuisine. Cooking souvlaki or souvla at a barbecue party and sharing the meal with everyone is a delightful experience. On the other hand, I was a little surprised that the variety of fish was less than I had expected but even more surprised by the abundance of sushi restaurants. I hope that the number of restaurants with Japanese chefs will increase in the future. Visiting various parts of Cyprus brings me a lot of joy: the small villages, with their cobblestones, stone-walled houses and old bridges, while the mediaeval churches stand out against the blue sky. I can feel the history and life of Cyprus. I share my experiences in Cyprus and thoughts about Japan on Instagram and Facebook, so please take a moment to have a look!

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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