In October 2015 the Cyprus Tax Department issued the Circular 2015/13 aiming at creating a stable and credible tax system and establishing new procedures for the issuance of advance tax rulings. Recently, the Cyprus Tax Department announced, through the Decree 130/2016, that the following fees will be imposed:
- €1000 for tax ruling requests without an expedition.
- €2000 for tax ruling requests with an expedition. It should be clarified that in this case, tax rulings will be issued within 21 working days.
It should be underlined that a request for tax ruling must be accompanied by evidence of payment.
The Circular 2015/13 formalises the procedures for the efficient and effective issuance of advance tax rulings. The most important provisions of Circular 2015/13 are:
- Deadline: Since October 2015, the Tax Rulings Division of the Cyprus Tax Department, issues advance tax rulings for actual transactions in relation to future transactions planned to be undertaken by existing or new For example, ruling requests concerning transactions concluded during 2015 will be accepted up to 31 March 2017, the deadline for filing the 2015 tax return.
- Necessary Information: Request for tax rulings must be in a written form and addressed to the to the Commissioner of Taxation. In addition, the following information must be disclosed:
- Name and tax identification code of the parties involved, as well as, the name(s) of the company (ies) of which any parties are members.
- Evidence that all the parties have filed all the tax returns properly.
- A summary of the matter of the request in respect of which the ruling is required, providing details about the tax issue under consideration.
- Detailed factual analysis of the transaction or transactions relating to the request.
- The relevant question or questions on which a ruling is required.
- The relevant extracts of the tax legislation, tax circulars or practices of the Tax Department and any relevant case-law.
- The applicant’s view on the tax treatment of the transaction.
The team of Michael Chambers & Co. LLC is able to advise you and provide you with adequate legal and administrative support. Our lawyers are committed to providing you with custom-made solutions that will assist you to define an efficient and effective tax planning strategy. If you wish to speak to one of our lawyers, then please contact us: [email protected]