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Cyprus Issues Guide on Tax Regulations for Companies

Cyprus-issues-guide-on-tax-regulations-for-companiesTaking into account the European Union’s modifications related to automatic exchange of cross-border tax rulings, The Cypriot tax authorities have issued a circular with the purpose of establishing efficient procedures for the issuance of advance tax rulings. The authorities hope to create a stable and trustworthy taxation legislation for foreign investors coming to Cyprus. Our Cypriot lawyers can also offer you details about the taxation system.

New requirements for advance tax rulings

Considering the European Union is preparing to change the regulations for automatic exchange of cross-border tax rulings, the tax authorities have already issued Circular 2015/13 containing new requirements for Cypriot companies involved in cross-border trading activities. Starting with the 1st of October 2015, the Tax Rulings Division within the Cypriot tax authorities will issue advance tax rulings related to future transactions undertaken by both newly incorporated and existing companies. New regulations will also be issued for transactions for the past years in which filing tax returns with the Cypriot authorities was not required.

The new requests for tax rulings will be submitted with the Commissioner of Taxation and will contain the following information:

  • -          the name and tax identification number of the company involved in the transaction,
  • -          the name of the group the Cypriot company is a member of, if applicable,
  • -          whether all due tax returns have been lodged,
  • -          a description of the tax issue under consideration,
  • -          a detailed analysis of the transaction,
  • -          the questions addressed to the Commissioners,
  • -          excerpts from the relevant legislation related to the tax matter in question,

If you need help with the submission of queries related to tax returns, please contact our lawyers in Cyprus.

The validity of tax rulings

The tax rulings issued by the Commissioner will be considered binding only to the extent of the facts and circumstances referred to in the ruling request. The ruling will only be binding with respect to the Cypriot company addressing the request and will not have a broad application. Also, if the facts presented in the request do not match the reality, the ruling will not be enforced. Cypriot companies filing tax ruling requests related to past transactions will be directed to the responsible District Tax Office.

You can obtain more information related to the new tax ruling legislation from our law firm in Cyprus.



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