News & Views

SUPREME COURT RULES ON VAT ON PROVISION OF ACCOMMODATION SERVICES – COURTESY OF DELOITTE

On 27 September 2017, the Cyprus Supreme Court issued its decision in a case involving the application of VAT to ‘commitment contracts’ in the hotel sector where tour operators do not use all the pre-booked rooms. Facts The hotels and tour operators had entered into agreements on a commitment basis. Based on the provisions of […]

IMPOSITION OF VAT ON LETTING OF IMMOVABLE PROPERTY – COURTESY OF DELOITTE

As from 13 November 2017, Cyprus VAT at the standard rate of 19% is imposed on the letting of immovable property. The relevant legislation was published on 13 November 2017 and on 2 January 2018 the Cyprus VAT Department released Interpretative Circular 220, which clarifies the following aspects of the new law with regards to […]

CYPRUS TAX AUTHORITIES PUBLISH 10-YEAR GOVERNMENT BOND YIELD RATES FOR NID – COURTESY OF EY

The Cypriot Tax Department issued an announcement on 14 February 2018 to inform taxpayers of the 10-year government bond yield rates as at 31 December 2017 for a number of countries (set forth in the table below), with respect to the Notional Interest Deduction (NID) regime. These yield rates shall be used to determine the […]

CIBA / NBAC JOINT EVENT “LIMASSOL PORT UNDER NEW MANAGEMENT”

The Cyprus International Business Association in collaboration with the Norwegian Business Association Cyprus, organised with great success an event entitled “Limassol port under new management”, with speaker Lazaros Charalambous, the Commercial Manager of DP World. The event was held at the Four Seasons Hotel and there were many participants from both associations, as well as […]

RUSSIAN NEWS: EXTENSION OF THE CAPITAL AMNESTY DEADLINE – COURTESY OF PWC

This is to inform you of the bills on tax amnesty providing for the extension of the capital amnesty deadline, which have passed their third reading in the Russian State Duma. The bills introduce the so-called “second stage” of the amnesty programme. We attach below the tax report issued by PwC Russia in English, in […]

VAT AND HOLDING COMPANIES – COURTESY OF PWC

On 9 January 2018, the TAX Authority has released Circular 222 which provides the Tax Authority’s interpretative guidance on the interaction between holding companies and VAT. In particular, the Circular reconfirms the decided ECJ principles that active holding companies are business persons, while at the same time confirms that active holding companies are able to […]