FRIDAY, 18 JAN 2019

 

CONNECT

Facebook Linked In Twitter
GAP_Group_2018_728x90px
Invest Cyprus 30/04-30/03/2019
IMH LTD

Syllouris Travels to Dublin for Event on Dail's 100th Year Celebration

Christodoulides: Interim Solution for British Bases in Cyprus in Case of Hard Brexit

IMH LTD
PwC_TFF_09/01-20/01_scroll

OPINION

Social Insurance Compliance in Respect to Benefits in Kind

Social Insurance Compliance in Respect to Benefits in Kind

Considering the intense competition between businesses, employers started offering a wide range of Benefits in Kind ‘BIK’ (usage of corporate and private cars, shares purchase plans, usage of assets, meals, gifts, relocation expenses, traveling expenses, etc.) aiming to attract skilled and qualified staff, and ensure work satisfaction, boost morale and improve productivity and profitability.

However, due to the uncertainty of the legislative framework of the tax treatment of the BIK, common practice and judgmental approach are followed leading employers to non-compliance with the legal framework, exposing them to financial and other risks. To address this ambiguity in the legislative framework, in October 2017, the Tax Department issued a draft informative document for public consultation on BIK.

The ultimate purpose of the Tax Department is the issuance of a formal analytical circular clarifying the meaning of the various BIK as well as the method of their quantification and taxation in order to assist companies to understand the treatment that has to be followed with the aforementioned benefits. This circular is expected to be officially announced by the end of this year. Currently, the content of the draft circular as published by the Tax Department is descriptive, comprehensive and easily applicable by the general public. However, companies have to consider the possible Social Insurance implications.

It should be noted that for the clarification of the treatment of BIK, the Social Insurance Services are taking into consideration the information submitted to the responsible department since each case may be treated differently. Currently, due to the absence of a general reference interpretation about BIK, gratuities, ex-gratia payments (Administrative Court – Case No. 74/2015) as well as the upcoming amendments which arise accordingly to the draft circular of the Tax Department, several companies are requesting the assistance of a specialist in this field, in order to receive the proper information and guidance on the Social Insurance treatment of the above-mentioned benefits and/or other payments and minimise potential financial and other compliance risks.

MORE ON OPINION

Cyprus: Real Estate Market 2018 - 2019

- Cyprus is seeing new office developments to accommodate expanding local and new ...

The Effect of Brexit on UK Citizens Living in Cyprus

I am sure many of us have been closely following the political events taking place in the ...

Zzz to the Top!

Back in September 2012, I experienced two major transformations in my life. The first and ...

FROM AROUND GOLDNEWS

   

Third Place for Cyprus in Europe's Most Family Friendly Beach Destinations

According to a new Family Beach Index conducted by the company, On the Beach, Cyprus has ranked third out of a total of 50 family beach destinations. The index ...
   

Regus Ordered by the High Court to Pay €74,000 in Costs over EASY Branding Dispute

Sir Stelios Haji-Ioannou’s easyGroup, owner of the easy family of brands (www.easy.com), has today claimed a second important victory in its long running ...
   

PwC: Global Economic Growth Expected to Slow in 2019

The global economy as a whole is expected to slow in 2019 as G7 countries return to long-run average growth rates, according to new projections from PwC in its ...
   

Mann Vergan Appointed Director of Legal and Corporate Services at Woodbrook

Woodbrook Group, a Cyrpus-based independent financial advisory and corporate services company with offices across Europe, Asia and the Middle-East, has ...
   

Cypriots Travelling Abroad Increase in December 2018

On the basis of the results of the Passengers Survey, 122,149 residents of Cyprus returned from a trip abroad in December 2018 compared to 110,849 in the ...
   

Christodoulides: Interim Solution for British Bases in Cyprus in Case of Hard Brexit

Cyprus Foreign Minister Nikos Christodoulides has said that in case the UK leaves the EU without an agreement, an interim solution will be applied for the ...
   

Inflation Increases by 0.8% in 2018

In December 2018 the Harmonized Index of Consumer Prices increased by 1.0% compared to December 2017, while compared to November 2018 the HICP decreased by 0. ...
   

GOLD Magazine - The Human Component of Foreign Investment

Cyprus prides itself – rightly so – on its hospitality and positive attitudes towards all foreigners but what it the island like for those ...
 

YOUR COMMENTS

HEADLINES

MOST POPULAR

Deloitte_2016_300x250px
Martin_Lindstrom_01/11-30/01_300x250px

IMH LTD