Facebook Linked In Twitter

Savvas Perdios: Cyprus Tourism Strategy Already Underway

Natasa Pilides: Limited Risks To Cypriot Shipping From Brexit



brought to you by PWC

The Cyprus Government Has Ratified The Multilateral Instrument

The Cyprus Government Has Ratified The Multilateral Instrument

On 22 January 2020, the Instrument of Ratification of the Multilateral Convention to Implement Tax Treaty Related Matters to Prevent Base Erosion and Profit Shifting (“the Multilateral Convention”) were published in the Official Gazette of the Republic in Greek and English, (“Multilateral Instrument”). In addition, the MLI Cyprus Position and the Explanatory Statement were published.

The purpose of the Multilateral Convention is to automatically and swiftly amend existing bilateral tax treaties, providing uniformity and coherence. Cyprus approved the incorporation of Action 6 Purpose of Covered Tax Agreement, Action 7 (Treaty Abuse) and Action 14 (Making Dispute Resolution Mechanisms More Effective) in order to ensure the required compliance of the country with the minimum actions. Cyprus has indicated to cover all of its existing double tax treaties, except where the application of minimum standards has been agreed bilaterally.

The Multilateral Convention shall apply with regard to the bilateral double tax treaties, provided that the Contracting State has also ratified the Multilateral Convention.

The provisions of the Multilateral Convention, with regard to taxes withheld at source, for are applicable on the first day of the following calendar year, which for Cyprus is 1 January 2021.

As from 1 January 2021, in the case of a Cypriot tax resident company (usually established by a non - Cypriot tax resident individual or by a non - tax resident company), in order to continue to be able to claim reduction or elimination of withholding taxes on income received (usually dividends, interest or royalties) from a country with which Cyprus has concluded a double tax treaty, (provided this country itself has completed the ratification procedures) it must prove that obtaining treaty benefits was not the only purpose or one of the principal purposes for the company being established in Cyprus.

In order to be able to prove the above, the Cypriot tax resident company needs to have sufficient substance in Cyprus, has business considerations for being set up in Cyprus and, preferably, carry out multiple activities within the company.


Oracle Adds 5 New Cloud Regions As Expansion Of Cloud Footprint Continues At Pace

Oracle today revealed the major progress it is making on its rapid Generation 2 Cloud ...

Fairfax Yeaman Presents New Website

Fairfax Yeaman are pleased to announce the launch of their new website which went live on ...

More Scheduled Flights To Paphos International Airport For Summer 2020

Paphos International Airport (PFO), located just 6 km from the city of Paphos and ...



Quantum Computing: A Glimpse Of Tomorrow’s Technology

Quantum computing is one of the most promising research topics of the new decade. It’s based on the principles of quantum physics thus many computations ...

Bioland Promithia Gala Dinner

Bioland Promithia Ltd, a Member of the Bioland Group of Companies organises a Gala Dinner on Friday March 20, 2020, 7:00 pm - 10:30 pm, at Ktima Kousioumi in ...

European Commission Receives Mandate To Begin Negotiations With The UK

The European Commission announced in their press release that it welcomes the Council's decision to authorise the opening of the future partnership ...

The Prince Of Wales And The Duchess Of Cornwall To Jointly Visit The Republic Of Cyprus

At the request of the British Government, The Prince of Wales and The Duchess of Cornwall will undertake an official visit to the Republic of Cyprus from ...

Cyprus Speaker Receives New Greek Ambassador

Cyprus` House of Representatives President Demetris Syllouris received on Tuesday Greece`s new Ambassador in Nicosia Theocharis Lalacos.   Syllouris ...

Virgin Galactic Sees Demand For Space Travel Surge

Virgin Galactic has said it will release more tickets for flights into space amid surging demand, the BBC reported. Sir Richard Branson's firm, which ...

Disney Boss Bob Iger Surprisingly Steps Down As Chief Executive

Disney boss Bob Iger, who led the media company through several blockbuster acquisitions and the launch of a streaming network, is stepping down as chief ...

Company Profile: KPMG

KPMG is a global network of professional services firms providing Audit, Tax and Advisory services. They operate in 147 countries and territories and have ...