NEWS & LEGAL UPDATES | mpclegal

NEWS & LEGAL UPDATES

Yacht Leasing Scheme Cyprus

Yacht Leasing Scheme Cyprus

Yacht Leasing Scheme Cyprus Cyprus enjoys a favorable tax system in line with the EU requirements and OECD principles. In order to qualify under the Cyprus Yacht Scheme the applicant must incorporate a Cyprus company and lease out the yacht through that company provided that the applicant satisfies the following requirements, instead of buying the yacht outright and paying the full VAT on the transaction, noting that the current VAT rate in Cyprus is 19%. Requirements – Cypru

The Cyprus Tonnage Tax System – a useful tool for ship owners, managers and charterers

The Cyprus Tonnage Tax System – a useful tool for ship owners, managers and charterers

The Cyprus Tonnage Tax System – a useful tool for ship owners, managers and charterers With the emergence of Cyprus as a leading maritime centre encompassing the full range of shipping related activities coupled with its attractive tax regime, we would like to remind clients of the benefits and importance of the Tonnage Tax System (the “TTS”) which was approved by the European Commission transposed into national legislation by the Merchant Shipping (Fees and Taxing Provisions

Kazakhstan - Cyprus Double Tax Treaty

Kazakhstan - Cyprus Double Tax Treaty

Kazakhstan - Cyprus Double Tax Treaty The double tax treaty between Cyprus and Kazakhstan was signed in Nursultan, Kazakhstan on 15th of May 2019 (the “Treaty”). The Treaty is based on the OECD Model Tax Convention, a model for countries concluding bilateral tax treaties, aiming in removing tax related barriers to cross border trade and investment by implementing provisions for the avoidance of double taxation on income and capital gains tax. Main Provisions of the Treaty: 1.

VAT Provisions on Immovable Property

VAT Provisions on Immovable Property

A. New VAT provisions The Cyprus House of Representatives passed a Bill which amended Law N.95(i)/2000, imposing Value-Added Tax (VAT) on immovable property to ensure compliance with the EU VAT Directive 2006/112/EC. 1. Activities regarding the lease of an immovable property for business use: As per the new provisions, any lease of an immovable property to a taxable person within the scope of exercising a business activity attracts the VAT rate of 19%. However, this rate doe

Revised Definition of “Shell Companies” by Central Bank

Revised Definition of “Shell Companies” by Central Bank

On the 2nd of November 2018, the Central Bank of Cyprus (the “CBC”) issued a circular with the purpose of clarifying the definition of “Shell Companies” and how the service providers and banks should classify them. The revised definition aims to offer clarity and certainty as to the legal requirements underpinning the shell companies. As per CBC circular, the term “shell company/entity” refers to a limited liability Company or any other legal entity that: Has no physical pres

The “60-day” Rule- A New Concept of Tax Residency in Cyprus

The “60-day” Rule- A New Concept of Tax Residency in Cyprus

On 14th July 2017 the Cyprus parliament voted for a Cyprus tax law amendment namely the “60 day rule” which will co-exist with the already established “183-day rule”. The “60 day rule” is a further effort of the Cypriot government to attract foreign investment to Cyprus and bolster Cyprus’ reputation as a European financial hub. Under the “183 day rule”, an individual who spends at least 183 days a year in Cyprus is considered a Cyprus tax resident. The “60 day rule” aims to

New trading relationship: Double Tax Treaty between Luxembourg and Cyprus

New trading relationship: Double Tax Treaty between Luxembourg and Cyprus

On the 8th May 2018, the finance ministers of Luxembourg and Cyprus signed the Double Taxation Avoidance Agreement between the two countries. The new Agreement is expected to come into force as from 01/01/2018 with the aim to strengthen and expand the commercial ties between the two Member States. The Agreement echoes all the required international standards as provided by the Base Erosion and Profit Shifting (“BEP”) recommendations in respect of the exchange of information,