November 2, 2018

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 presence or operations; “physical presence” includes employees, office space, etc. The presence of a third person providing merely nominee services including company secretary duti...

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, providing thus greater level of legal certainty and predictability.

The Agreement provides, inter alia, for the following:

  • Dividends: 0% withholding tax if there is at least 10%...

Three years of unclarity and uncertainty over Cyprus’ position as a notable alternative tax jurisdiction for India, due to the absence of exchange of information between the jurisdictions, has now come to an end.

The new Double Taxation Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income between Cyprus and India has now become official through the execution of the new treaty by representatives of the two countries. The new treaty is expected to come to effect in April 2017 after it has been sanctioned by the governments and once the treaty is in force, the Indian authorities will withdraw C...

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