Further, some treaties provide for tax sparing credits whereby the tax credit allowed is not only with respect to tax actually paid in the other treaty country but also from tax which would have been otherwise payable had it not been for incentive measures in that other country which result in exemption or reduction of tax.

The Cyprus Limitation of Actions Law,  Cap 15, sets out the time limits within which claims must be brought before a court.

The Law was suspended following inter-communal disturbances in 1964 and has remained suspended ever since. Law 159(I)/2011, which was enacted on the 09.12.2011, now provides that the suspension of limitation will cease on the 30.06.2012.

Law 110(I)/2002 was passed, which provided that the Limitations Law would re-enter into force with effect from 1 June 2005. However, Law 110(I) itself was suspended, initially until 31 March 2010, later until 30 November 2010 and then until the 31 March 2011.  Subsequently Law 41(I)/2011, further extended period until the 31 December 2011.

Pekris & Theodorou LLC is a Cyprus law firm with Cyprus lawyers and other legal experts on legal matters involving Cyprus law, EU law and international law. The above should be used as a source of general information only. It is not intended to give a definitive statement of the law and is subject to the disclaimer.

Cyprus Parliament has enacted legislation providing for the partial write-off of interest and penalties on overdue tax, provided that the balance is settled by the 31 March 2012.

The newly enacted legislation applies to individuals and companies alike and affords a waiver of interest and penalties in excess of 5% of the principal amount owed. The law applies to income tax, SDC tax, immovable property tax, stamp duty and capital gains tax for periods up to 31 December 2008.

The law was enacted despite warnings from the office of the Attorney General`s office that it is unconstitutional. In a letter to the House Finance Committee, the Attorney General warned that the legislation contravenes articles 24 and 28 of the Cyprus Constitution, which provide that all persons are equal before the law and that every person is bound to contribute according to their means towards public burdens.

The Attorney General warned that the legislation would have the same effect as a similar law passed in December 2007, which was ruled as being discriminatory by the Supreme Court. In its May 2008 decision, the Supreme Court held that the 2007 law was unconstitutional since it discriminated against taxpayers who comply with their obligations in favour of those who refuse to assume and fulfil the same obligations.

Pekris & Theodorou LLC is a Cyprus law firm with Cyprus lawyers and other legal experts on legal matters involving Cyprus law, EU law and international law. The above should be used as a source of general information only. It is not intended to give a definitive statement of the law and is subject to the disclaimer.

Further Tax Law related information is available here.

The law also provided that purchasers who submit applications under the provisions of the Town Planning Amnesty will enjoy the same benefit.

Following the expiration of the 6 months it is expected that new legislation reforming the taxation of real estate in Cyprus will apply.

Pekris & Theodorou LLC is a Cyprus law firm with Cyprus lawyers and other legal experts on legal matters involving Cyprus law, EU law and international law. The above should be used as a source of general information only. It is not intended to give a definitive statement of the law and is subject to the disclaimer.

Further Property Law related information is available here.

The tax bands and rates are therefore now as follows:

Pekris & Theodorou LLC is a Cyprus law firm with Cyprus lawyers and other legal experts on legal matters involving Cyprus law, EU law and international law. The above should be used as a source of general information only. It is not intended to give a definitive statement of the law and is subject to the disclaimer.

Further Tax Law related information is available here.

The legislation passed provides that eligible persons will be subject to a lower VAT rate of 5% on the purchase or construction of a first residence. The rate will apply for the first 200 square meters of residences of total covered area of up to 300 square meters and takes force as of 1 November 2011.

Under the legislation an “eligible person” is defined as any individual who fulfills the following conditions:

(i) has completed 18 years of age at the time of submission of his application,

(ii) is a citizen of the Republic of Cyprus or any other Member State of the EU, and

(iii) does not own any other place of residence in Cyprus.

It should be noted that the reduced rate applies only for properties which are used as the primary and permanent place of residence.

The current VAT refund scheme will cease to apply once all pending applications are examined. Applications for VAT refund can be submitted up until the 1 November 2011.

Pekris & Theodorou LLC is a Cyprus law firm with Cyprus lawyers and other legal experts on legal matters involving Cyprus law, EU law and international law. The above should be used as a source of general information only. It is not intended to give a definitive statement of the law and is subject to the disclaimer.

Further Property Law related information is available here.

Update: Legislation rejected by President and not enacted. Amending Law 129(I)/2011 enacted, which can be can be viewed (Greek language) here.

The Court of Appeal’s finding that arbitrators were employees had raised a number of questions; not least as such characterisation is inconsistent with many of the functions and duties of arbitrators under the U.K. Arbitration Act 1996.

Both parties appealed the Court of Appeal`s decision to the Supreme Court. The broader potential implications of the case have generated considerable discussion within the international legal community. One of the key issues for consideration by the U.K. Supreme was whether the nature of the agreement between the parties and arbitrators, was such, that arbitrators may be considered ‘employees’ of the parties, (and thereby subject to the law prohibiting discrimination by employers).

In today’s decision [2] (27 July 2011), the Supreme Court confirmed that arbitrators are not employees within the meaning of domestic anti-discrimination legislation.

The Supreme Court after considering both European and English case law identified a clear distinction between those who are in substance employed, and those who are “independent providers of services who are not in a relationship of subordination with the person who receives the services”. The court held that an arbitrator is in the category of an independent provider of services who is not in a relationship of subordination with the parties who receive his services.

[1] [2010] 2 Lloyd’s Rep 534, [2010] IRLR 797, [2010] EWCA Civ 712

[2] [2011] UKSC 40

Pekris & Theodorou LLC is a Cyprus law firm with Cyprus lawyers and other legal experts on legal matters involving Cyprus law, EU law and international law.The above should be used as a source of general information only. It is not intended to give a definitive statement of the law and is subject to the disclaimer..

On the 19th July 2011,  Luxembourg’s Finance Minister Luc Frieden conducted an official visit to Cyprus.

According to the Luxembourg government Mr Frieden exchanged views with his Cypriot counterpart Charilaos Stavrakis, on recent developments in their respective financial sectors and on European and national legislation in this area. Within this context, Cyprus and Luxembourg agreed to initiate negotiations seeking to conclude a bilateral double taxation agreement (DTA) between the two countries, in a bid to strengthen cooperation between the two financial centres.

Mr Frieden also met the governor of the central Bank of Cyprus, Athanasios Orphanides, as well as the president of the Cyprus Securities and Exchanges Commission, Mr Georgios Charalambous.

The MoU has been signed on behalf of the CBRC by its Chairman Mr LIU Mingkang, who visited Cyprus for this purpose and, on behalf of the Central Bank of Cyprus, by its Governor, Mr Athanasios Orphanides.

The MoU follows the basic principles of cooperation between supervisory authorities, as formulated by the Basel Committee on Banking Supervision. The MoU outlines the general framework of mutual cooperation and exchange of information between the two supervisory authorities, for the purpose of facilitating the performance of their supervisory function as well as for the effective supervision and regulation of credit institutions with a cross border presence, in accordance with the respective national laws and regulations.

Pekris & Theodorou LLC is a Cyprus law firm with Cyprus lawyers and other legal experts on legal matters involving Cyprus law, EU law and international law. The above should be used as a source of general information only. It is not intended to give a definitive statement of the law and is subject to the disclaimer.

The Memorandum of Understanding was signed by Mr. Andre Went, CEO of Qatar Exchange and by Mr Epaminondas Metaxas, CEO of the Cyprus Stock Exchange.

In the signing ceremony, Mr. Went stated that “I am delighted to see this Memorandum of Understanding signed between the two exchanges, hoping that it will help enhance the economic cooperation between the two countries.

The Memorandum of Understanding clearly fits in a range of agreements that have been signed between the State of Qatar and the republic of Cyprus and it signals the willingness of the two countries to cooperate and develop this relation further. The signing ceremony today is just a beginning of further cooperation between the two exchanges. We will soon start the work that has to be done in order to implement the scopes of cooperation included in the Memorandum of Understanding. I look forward to a long and mutually beneficial relationship between Qatar Exchange and the Cyprus Stock Exchange.”.

On his part Mr Metaxas, Director General CEO of the Cyprus Stock Exchange, thanked the Qatar Exchange and said he was confident that the Memorandum of Understanding will prove to be a useful instrument not only to further strengthen the level of cooperation between the two exchanges, but also to open new areas of business opportunities for the market participants both in Qatar and in Cyprus.

The purpose of this Memorandum of Understanding is to establish and implement a procedure of mutual co-operation and agreement between the two Exchanges, primarily for the purpose of facilitating the execution of functions assigned to them, the exchange of information, the proper dissemination of information and the promotion of the integrity of the markets. This Memorandum of Understanding provides a framework of co-operation, which includes the existence of a channel of communication between the two Exchanges, the increasing mutual recognition and the exchange of information of legal and technical content.

The ceremony was attended by Mr Panicos Kyriakou, ambassador of the Republic of Cyprus to the State of Qatar and Mr Rashid Al-Mansoori, Deputy CEO of Qatar Exchange.

Full press release here

Pekris & Theodorou LLC is a Cyprus law firm with Cyprus lawyers and other legal experts on legal matters involving Cyprus law, EU law and international law.The above should be used as a source of general information only. It is not intended to give a definitive statement of the law and is subject to the disclaimer.