Magnumserve LTD

The Cabinet approved on Friday (7.10.2016) a draft bill, concerning the establishment of the National Health System, as well as a second draft bill that provides for the autonomy of hospitals, Health Minister George Pamborides announced on Friday.

The Cyprus Privatisation Unit has announced a tender for the appointment of a reputable independent advisor to prepare a strategic plan for the privatisation of the Cyprus Stock Exchange (CSE) by the end of March 2018.

In statements to the press on Wednesday, 13th September 2016, the Minister of Finance, Harris Georgiades noted that the revision of the scheme aims to encourage real investments that would benefit the economy.

On June 29th, 2016, the negotiation on the 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 been successfully completed, in New Delhi. The completion of the negotiation and the agreement reached on all pending issues will pave the way for the removal of Cyprus from the list of notified jurisdictional areas place in November 2013.

Representatives of the Cyprus and the Ukrainian governments have signed, in Kiev, on Friday, 11 December 2015, a protocol amending their Double Tax Avoidance Treaty.

On 15th October 2015, the Double Tax Treaty between the Republic of Cyprus and Swiss Confederation had entered into force (the “Treaty”).

Tax Department, has recently issued a circular in relation to the applications for the issuance of tax residency certificates.

A tied agent means a person established in a Member State, who, acting under the full and unconditional responsibility of only one Investment Firm of a Member State and, on whose behalf it acts, (i) promotes investment or/and ancillary services; (ii) attracts clients or prospective clients (iii) receives and transmits client orders in respect of investment services or financial instruments; (iv) places financial instruments and/or (v) provides advice to clients or prospective clients in respect of those financial instruments or services.

Winding up is the process by which the company’s assets are realized, the proceeds are distributed to its creditors and the surplus, if any, to its members. The winding up must not be confused with insolvency, as a solvent company may be wound up as much as an insolvent company.

Due to existing problems with regards to companies competing for the undertaking of public projects, on the 28th September 2015 the Cabinet decided to give an end to the scandals involving the squander of millions of public money by approving an amendment Bill,

The Companies Law, Cap.113 as amended by the 89(I)/2015, 63(I)/2015 and 62(I) 2015introducedthe examinership procedure, a process attempting to rescue companies facing insolvency from its creditors by providing a period of time where the company is placed under the court’s protection while its business is assessed bythe Examiner.

It is proposed that as of 1st January 2015, exchange differences, whether losses or gains, which do not relate to trading in forex, are not tax deductible or taxable respectively. Companies specifically trading in FX Currencies, FX currency options and certain derivatives are exempted, yet, there is an option to make an irrevocable election.

The growing importance of cross border successions within the European Union and the difficulties and complications resulting from the diversity of succession and private international law rules relating to succession, prompted the European Commission to examine the possibility of introducing a Regulation that would facilitate and streamline cross border successions.

It has been officially yesterday reported by the Ministry of Finance of the Republic of Cyprus that after negotiations a protocol was concluded on the 2nd of July 2015 that will amend, upon its expiration, the existing Convention for the Avoidance of Double Taxation and the prevention of fiscal evasion with respect on taxes on income.

According to Cyprus Securities and Exchange Commission’s (“CySEC”) announcement dated 9th of July 2015, the process starting from the date of granting the authorization of a new firm until the date of its activation, is as follows:

RECENT DEVELOPMENTS IN CYPRUS DTT NETWORK

The Cyprus Investment Firms Law 144(I)/2007 provides the legal framework for the provision of investment and ancillary services as well as specific provisions regarding capital requirements, the establishment of branches, authorization and supervision of Cyprus Investment Firms (CIFs).

The legislative body of the Republic of Cyprus introduced the Law 131 (I)/2015 referred to as the Law on the Establishment and Operation of an Administrative Court. This new law provides for the establishment of an Administrative Court with exclusive jurisdiction to adjudicate administrative recourses under Article 146 of the Constitution.

A bill under the name “Lawregulating the activities of portfolio investor companies of 2015”, has been drafted by the Central Bank of Cyprus and is set for approval by the Parliament by the end of September 2015. Cyprus will need to implement this law before a €500 million bailout tranche is released.

On the 9th July 2015, Cyprus Parliament passed number of new laws, which purport to make Cyprus a more attractive investment destination. The Laws are still not in force and are due to be published this current month.

The Law amending the Companies Law CAP 113 N.4 [89(I) /2015] and collectively (the ‘Law’) came into force on 19 June 2015 and brought with it several changes to the current legal regime.

ASSET PROTECTION & CYPRUS INTERNATIONAL TRUSTS

This short note is dedicated to the test of residency in Cyprus for the purposes of taxation.

On 29 September 2014 the Law has been amended and the Article 18ΦΖ(7) of the Aliens and Immigration Law (Cap.105) as well as article 4 of the Aliens and Immigration (Amending) (No.2) Law [Ν129(Ι)/2014, O.G. Annex.Ι(Ι) No. 4456] are set into force, for the following categories of third country nationals: