Banking regulations in Cyprus regarding ‘shell’ companies

The Central Bank of Cyprus (CBC) has issued a Circular through which it sets out the definition of “shell companies”, and clarifies in which cases a bank in Cyprus is permitted to engage in business relations with new as well as existing Cyprus and foreign companies. For further information, you may refer to our related detailed information sheet.

What is a Notional Interest Deduction (NID)?

As per the relevant Cyprus tax provision, the Notional Interest Deduction (NID) reference rate results in an annual notional interest expense that reduces the relevant taxable profit of a Cyprus resident company. For further information on NID, you may refer to our related detailed information sheet.

2018 Cyprus Reference Rates for Notional Interest Deduction

The Cyprus Tax Department has announced the official reference rates of the 10-year government bonds of a number of countries as at 31 December 2017. These rates, when increased by 3%, constitute the reference rates for the purpose of calculating NID for the year 2018, with the minimum reference rate used being the one of Cyprus.

Imposition of VAT on the sale of undeveloped land and on rental income

The Cyprus VAT Law has been amended to provide for the imposition of VAT at the standard rate of 19% on the sale of undeveloped building land by persons exercising economic activities, as well as on the leasing or rental of immovable property for business purposes.

Getaway weekend for Totalserve Group employees!

On the 1st of December 2018 a getaway weekend was organised for all employees of Totalserve Group at Agros village. A seminar on customer service was organised by Philippos Aristotelous.