On October 23, the Government of Cyprus approved a number of amendments to the Tax Code. According to the head of the Ministry of Finance of the Republic Haris Georgiadis, this step is aimed at combating defaulters and increasing tax collection in the state. Amendments will be submitted for final consideration and adoption by the Cyprus Parliament.

The first change will concern the rules for filing a tax return. Before the amendments, it should not have been submitted by individuals and legal entities, whose income did not exceed 19,500 euros per year. Under the new rules, the declaration of income will become a duty for all, without exception, who receive income in the republic. The declaration will be submitted through a special electronic service.

The Government of Cyprus intends to oblige the business to establish payment terminals. Previously, companies could refuse this option and receive payment for goods and services only in cash. After the amendments enter into force, legal entities will have to install such devices. At the same time, customers, as before, will be able to pay in cash, however, if the buyer has a desire to pay with a credit card, the company must accept this payment.

Another change will affect liability for tax evasion. In particular, entrepreneurs and legal entities that do not pay VAT and income tax may be punished with penalties. However, the government of the republic has not yet disclosed details about exactly what measures can be applied to violators.

Law&Trust firm offers services to companies operating in Cyprus. Our lawyers are aware of all legislative changes. We will provide advice on the legal subtleties of working in the republic, help to register the company and represent the interests of the client in the state bodies of Cyprus.