The Republic of Cyprus used to be one of the most liberal jurisdictions in terms of income declaration. Thanks to the “soft” legislation, many companies had the opportunity not to file tax returns and not to receive any penalties or sanctions for this. However, in 2019, the government of the jurisdiction decided to deal with defaulters, and the bill obliging all companies to declare income is already undergoing checks before the first reading in parliament.

The head of the Ministry of Finance of Cyprus Haris Georgiadis noted that such a move will allow fighting with companies that evade taxes. At the same time, the Minister of Finance emphasized that the bill does not provide for an increase in the tax burden on individuals and legal entities. According to the official, the agency only wants to get more information and fight with defaulters.

However, some additional costs for the business will still appear. In particular, all entrepreneurs and legal entities will be obliged to connect to the electronic payment system and install terminals to pay for goods and services with credit cards. Clients will be able to pay both with bank cards and in cash.

Law&Trust offers legal assistance to companies operating in Cyprus. Our lawyers will advise you on the new requirements for business in the republic, help you prepare reports and order a terminal for cashless payments.