Cyprus has updated its base rates for national interest deduction in 2020 The Cyprus Tax Department has issued a notice of publication of updated reference rates for Bermuda, Denmark, Jordan, Portugal and Switzerland regarding the determination of notional interest deduction (NID) for new equity investments. Note that as per the notice, base rates are increased […]

Amending Protocol to Tax Treaty between Cyprus and Russia The Ministry of Finance of Russia announced the signing of a protocol to amend the agreement on the avoidance of double taxation with Cyprus on September 8, 2020. The protocol will increase withholding income tax to 15 percent for dividends and interest income. The ministry said […]

Romania Authorizes Negotiation of Amending Protocol to Tax Treaty with Cyprus The Romanian government reportedly authorized negotiations and the signing of a protocol amending the 1981 income and capital tax treaty with Cyprus. This protocol will increase the withholding tax rate on dividends and interest to 15% (currently 10%). The protocol will be the first […]

Malta Releases Guidance On EU Anti-Tax Avoidance Directives Malta’s Commissioner for Revenue published on 31 August 2020 a Domestic Legislation Guide for the implementation of the EU Tax Avoidance Directives. To date, the EU has issued two Tax Avoidance Directives known as ATAD 1 and ATAD 2. These include provisions that member states were expected […]

Cyprus publishes amendments to VAT law According to the latest reports, Cyprus published the amendments to the VAT Law in the Official Gazette on 20 August 2020. The main amendments are summarized as follows: The new definition of “legal entity” for VAT purposes. “Entity” includes a company, partnership, association, or club, whether formed in accordance […]

Panama Parliament Considers Changes to Small and Medium Business Income Tax Rates The bill includes draft law No. U-20. Article 1 of this draft law amends Article 699-A of the Tax Code to provide for reduced corporate tax rates for small and medium-sized enterprises. Such businesses must meet the following criteria: Registered in the register […]

Russia-Cyprus Double Tax Treaty to be amended In Moscow, Cyprus and Russia signed an Agreement on the avoidance of double taxation, a new protocol will be signed in September. As a result of this meeting, the process of unilateral termination of the treaty by the Russian Federation is terminated. The period of uncertainty following the […]

Bulgaria Publishes Law Providing Reduced VAT Rate for Beer and Wine, Tourist Services, and Sports Facilities On 11 August 2020, Bulgaria published in the Official Gazette the law providing for the expansion of the scope of the reduced 9% VAT rate to beer and wine, tourist services, and sports facilities. As previously reported, this applies […]

Swiss e-services tax Under the new Swiss rules, a service qualifies as an e-service if it meets the following criteria: The service is provided via the Internet or any other electronic network; The service is provided automatically with minimal human intervention from the supplier; Inability to provide services without information technology. The provision of these […]

Cyprus Tax Authority Notice of VAT Payment The Cyprus Tax Department advises that for the VAT return for the period ending 31/5/2020, the deadline for filing and paying VAT is July 10, 2020. On this basis, the VAT due must be paid on 10/7/2020. Otherwise, the payment is considered late and subject to an additional […]