Publications

The Republic of Cyprus and the Grand Duchy of Luxembourg signed the Convention for the Elimination of Double Taxation with respect to Taxes on Income and on Capital and the Prevention of Tax Evasion and Avoidance on 8 May 2017.

The Cyprus Ministry of Finance announced that a Protocol amending certain of the provisions of the double tax treaty in existence between India and Cyprus has been agreed upon, following the completion of negotiations on 29 June 2016.

On 9 July 2015, the Cypriot House of Representatives voted on significant amendments to the Cyprus tax legislation further improving its attractiveness, as being a long established comprehensive, simple and transparent tax system. One of the most important changes made to the Cyprus legislation was the introduction of the concept…

On the 25th day of July 2014 Cyprus and Switzerland signed their first ever Double Tax Treaty (DTT) agreement. The ratification procedure of the DTT has finally been completed by both countries and as a result the DTT will come into effect as from the 1st day of January 2016.

The much expected developments in taxation are expected to considerably enhance the competitiveness of the Cyprus tax system without taking away from its already established comprehensive and transparent nature. A set of draft Bills were submitted to the Cyprus Parliament, and have been voted into law.

The new Russian law on the taxation of controlled foreign companies (the 'CFC') and other anti-offshore measures, better known as the “De-offshorisation Law” (the 'Law') had received presidential assent on Monday 24 November 2014. The new amendments to the Russian Tax Code, have been effective since 1 January 2015. The…

The new Russian law on the taxation of controlled foreign companies (the 'CFC') and other anti-offshore measures, better known as the “De-offshorisation Law” (the 'Law') had received presidential assent on Monday 24 November 2014. The new amendments to the Russian Tax Code, have been effective since 1 January 2015. The…

The new Russian law on the taxation of controlled foreign companies (the 'CFC') and other anti-offshore measures, better known as the “De-offshorisation Law” (the 'Law') had received presidential assent on Monday 24 November 2014. The new amendments to the Russian Tax Code, have been effective since 1 January 2015. The…

The Convention (Tax Treaty) for the avoidance of double taxation and the prevention of fiscal evasion signed on the 8th of November 2012, by Cyprus and Ukraine enters into force as from 1st January 2014 following its ratification by the Ukrainian Parliament on 4th July 2013, with 244 Members of…

Centaur Trust is proud to announce that we have been granted our license by the Cyprus Securities and Exchange Commission (CySec), and are the second company in Cyprus to be granted such a license to offer the complete range of services, as provided for by the law.

As you are no doubt aware, the last few days saw turmoil in Cyprus, due to a banking crisis brought about by the financial problems faced by the two largest banks in Cyprus, namely the Bank of Cyprus, and Laiki Bank. This in turn was a direct result of the…

On 14th of February 2013 Cyprus and Spain signed a new Income Tax Treaty agreement and protocol. The agreement was signed during a ceremony at the residence of Spain's Ambassador in Nicosia, Mrs Ana Salomon Perez, who said that after eight years of negotiations "we finally signed a double taxation…

On the 21st day of December 2012 several amendments to the Cyprus Tax laws have been voted in by the Parliament in Cyprus. We present below the most relevant amendments that affect our line of business.

The Law Regulating Companies Providing Administrative and Related Matters of 2012 (no.L.196(I)/2012) (“the Law”) came into force on 21 December 2012. The Law transposes the provisions of Directive 2005/60/EC into national law of the Republic of Cyprus (“the Republic”), and is intended to regulate the provision of administrative services.

On 8 November 2012 Cyprus signed a new Double Tax Treaty agreement with Ukraine. The conclusion of the new Double Tax Treaty marks the end of a long period of uncertainty and is definitely a welcoming development for investors. The new treaty was signed in Nicosia with the participation of…

On 15th November 2012, Cyprus and Finland signed a new income tax treaty. The agreement was signed by Cypriot Minister of Finance Vasos Shiarly and Ambassador of Finland in Nicosia Anu Saarela, at the Ambassador`s residence. Speaking at the ceremony, Saarela noted, "This is a significant step, indeed it is…

On 15th of October 2012 Cyprus and Estonia signed in Luxembourg an Income Tax Treaty agreement and protocol. The agreement was signed on the sidelines of the Foreign Affairs Council, by the Minister of Foreign Affairs, Erato Kozakou-Marcoullis, and the Estonian Minister of Foreign Affairs, Mr. Urmas Paet in the…

The principle of property rights is a cornerstone of a free society. The right to property is the recognition that an individual has ownership over that property, and may use it as he wishes, and that nobody else can lawfully use it without his authorisation. Intellectual property “IP” refers mainly…

As our global economy expands, companies operate under increasingly complex legal and regulatory mandates which inevitably lead to complications in the management and control of their day to day operations. As a result, corporate legal advice has become an important consideration for any business owner.

On 26 August 2011 the House of Representatives voted the first package of austerity measures which includes a number of amendments to the tax laws of Cyprus. This represents the first set of measures that the Cypriot government will be taking in order to reduce public spending and to boost…

On 18 February 2011 Cyprus signed a new Double Tax Treaty agreement with Germany. The conclusion of a Double Tax Treaty with the strongest Economy in Europe and one of the world’s leading economies, proves for once more the acceptance by the leading world economies of Cyprus as a reputable…

The law relating to registered companies is the Cypriot Companies Law, Chapter 113 of the laws of Cyprus, as amended (The Companies Law), which is almost identical to the United Kingdom’s former Companies Act 1948. The word Company has no strictly legal meaning. It is clear however that in legal…

On Thursday 7 October 2010 during the official visit of the Russian president Mr Dmitry Medvedev to Cyprus, 15 agreements were signed boosting bilateral ties with Cyprus. The final version of the long awaited Protocol to the Russia/Cyprus Double Tax Treaty was also signed.

On 12 February 2008, two Directives, one on the place of supply of services, the other on VAT refunds, were adopted by the EU Council of Ministers. From 1 January 2010, the new rules on the place of supply of services will mean that business-to-business “B2B” supplies of services will…

The Cyprus Parliament on the 22 October 2009 has enacted amendments to the Cyprus taxation Laws, in particular the Income Tax Law and the Special Contribution for Defence of the Republic Law, mainly aimed at making Cyprus an even more attractive place for foreign investors.

Centaur Trust is proud to announce the acquisition of a new purpose-built office building located on the outskirts of Nicosia. Centaur House is located in a traditional Cypriot rural setting, conveniently located near Nicosia, with easy access to Larnaca and Limassol.

On 16 April 2009 representatives from the respective Ministries of the Republic of Cyprus and the Russian Federation have initialled a double taxation protocol to the 1998 tax treaty between the two countries, paving the way for the removal of Cyprus from Russia's "black-list". The Protocol is expected to be…

Using a Cyprus company as a finance company, though being a good choice, was not always advisable and proper. The main reason for this was the reluctance of the tax authorities in Cyprus to issue pre-transaction rulings on interest margins. As a result the taxation uncertainty with regards to the…

Cypriot tax rules provide full exemption from local taxation on gains from the sale of securities?, irrespective of whether the gains are considered to be of a capital or of a revenue nature. There is no requirement for any minimum holding period or minimum % holding.

Malta is positioned as an innovative, reliable and flexible EU Financial Services Center, hosting and attracting a variety of financial services businesses and structures. The country has aspirations to grow and aims to become a center for finance functions of multinationals and mid-scale firms. Digital finance and blockchain technologies are considered as the key to the growth the finance center has enjoyed in recent years.

The Financial Crisis which started in 2008, brought about great turmoil and change to the global economic environment, but also brought about a period of rapid and large scale regulatory changes, with the aim of averting similar catastrophes in the global financial markets. The result is a Brave New World, where regulation, compliance and transparency dominate all aspects of finance. However, this has also created a trend in the financial industry, turning towards investment fund vehicles.

Despite being the smallest member state of the EU, Malta has established itself as one of the leading financial centres, having established a strong reputation for stability, predictability and security. This has served as a platform for the development of a model economy built on financial services and tourism.

Cyprus has been described by many as an ideal place to live, combining its European character with all the best features of a Mediterranean country. Knight Frank ranked Cyprus as the fifth best place to relocate, in its Global Lifestyle Review. The Island has mild winters and over 300 days of sunshine each year. Located in the Eastern corner of the Mediterranean, Cyprus is famous for its clear blue sea and clean beaches.

A multinational group, in choosing a suitable holding company jurisdiction, should take into account a number of tax considerations. Even though tax considerations may not be the decisive factor in choosing to set up a holding company in a particular jurisdiction, tax costs play a significant role.

A multinational group in choosing a suitable group finance company jurisdiction should give consideration to a number of tax considerations. Even though tax considerations may not be the decisive factor in choosing to set up a group finance company in a particular jurisdiction, tax costs play a significant role.22

Cyprus, offers the full spectrum of legislative framework to all fund products, and the enactment of the Alternative Investment Funds Law (AIF Law) in July 2014 provides for a significant modernisation of the related legal framework and offers a comprehensive tool box and new structuring options competitive to those of other established jurisdictions.

The new Russian law on the taxation of controlled foreign companies (the ‘CFC’) and other anti-offshore measures, better known as the “De-offshorisation Law” (the ‘Law’) had received presidential assent on Monday 24 November 2014. The new amendments to the Russian Tax Code, have been effective since 1 January 2015. This publication analyses the following parts: Part 1 Controlled Foreign Companies. Part 2 Recognising foreign organisations as tax residents of Russia. Part 3 Beneficial ownership clause and the taxation of shares in property rich companies

Corporate tax residence is currently a hot topic all over the world, as all countries seek to maximise tax receipts during the current difficult economic times. We have noticed an increase in corporate tax residency challenges in recent years in terms of both the number of challenges and their severity followed by a number of Governments around the world. In this publication we shall briefly analyse some of the key concepts of Corporate Tax Residence and offer suggestions on how these can be shielded.

This publication aims to provide information and advice about the setting-up and the maintenance of a Limited Liability Company in the United Kingdom.

This publication aims to provide information and advice about the setting-up and the maintenance of a Maltese Limited Liability Company.

This publication aims to provide information and advice about the setting-up and the maintenance of a Cyprus Limited Liability Company.

The tax law of Cyprus, as reformed, is probably the most modern, effective and simple tax system in the EU and in addition, it conforms to the EU and OECD regulations. Opportunities to reduce the burden of income tax are numerous, for individuals as well as for domestic and international businesses. This has created excellent opportunities for tax professionals to establish Cyprus as a major financial centre within the European Union, developing Cyprus from an alleged tax haven country into a Country that has a modern and competitive tax environment.

Throughout the world the barriers to capital movements are fast disappearing. Tax differences have become a very significant factor in commercial decisions, and therefore investment structures which have the least tax leakage are preferred by investors. During the last decade various European Countries have introduced finance company regimes and nowadays it is very difficult for a multinational group to select the right jurisdiction in which to establish their finance company.

We requested from our trusted digital design partners Oniric Creative Studios, to bring our company’s logo to life. The obvious logo design is that it portraits the silhouette of a strong trustworthy centaur. Behind the logo concept is that the centaur was actually inspired by the Greek mythological character, Chiron. Chiron was held to be a superlative centaur and a mentor of heroes. Skilful, strong and wise, those are characteristics that not only represent him but also the ethos of Centaur Trust as a company. The task was to understand those values and create a realistic image of Chiron as a direct representation of the company.

Whenever an international group establishes structures where there would be a holding company in a low tax jurisdiction and there would be subsidiary companies in the so called high tax countries, substance has become a crucial consideration at the holding company level. Even in cases where a double tax treaty exists, current anti-abuse provisions require that the holding company is not simply interposed, just for the purposes of avoiding withholding tax in the countries where the subsidiaries are located.

Corporate tax residence is the concept by which the taxing rights over a company’s profits and gains are determined. Different countries have different ways of defining corporate tax residence, which creates further complexity for companies operating in more than one country. Furthermore, corporate tax residence is of importance as a company needs to ensure that it is only subject to tax in the jurisdiction it intends to be taxed in. If for any reason the company does not secure this right, it can end up having multiple tax liabilities in different countries.

The place of central management and control as a test of residence is becoming established as the first rule that companies need to satisfy in order to avoid any tax adverse consequences. This is true in many countries now. The mere fact that the company has been incorporated in a particular jurisdiction does not automatically make the company tax resident in that particular jurisdiction. In most of the countries around the world there is no statutory definition of the meaning of “central management and control” but nevertheless court judgements on the meaning of central management and control can be treated and can be used as guidance on how…

At Centaur Trust the focus of all our attention is on servicing the requirements of an international client base. Adopting a client-focused and service based mind-set, and developing an unprecedented depth of client insight, we enhance the quality and consistency of our services towards our clients. This means thinking about the client experience, about the range of services that we can provide – and then aligning all efforts within our company to deliver that product range as part of a joined-up, consistent, high-quality service offering.

The tax law of Cyprus, as reformed, is probably the most modern, effective and simple tax system in the EU and in addition, it conforms to the EU and OECD regulations. Opportunities to reduce the burden of income tax are numerous, for individuals as well as for domestic and international businesses. This has created excellent opportunities for tax professionals to establish Cyprus as a major financial centre within the European Union, developing Cyprus from an alleged tax haven country into a Country that has a modern and competitive tax environment.

Throughout the world the barriers to capital movements are fast disappearing. Tax differences have become a very significant factor in commercial decisions, and therefore investment structures which have the least tax leakage are preferred by investors. During the last decade various European Countries have introduced finance company regimes and nowadays it is very difficult for a multinational group to select the right jurisdiction in which to establish their finance company.

The principle of property rights is a cornerstone of a free society. The right to property is the recognition that an individual has ownership over that property, and may use it as he wishes, and that nobody else can lawfully use it without his authorisation. Intellectual property “IP” refers mainly to the legal rights which result from the creativity of people: inventions, literary and artistic works, and symbols, names, images, and designs used in commerce.055

As international business comes under closer scrutiny, many tax authorities will not accept “brass name plate” structures as sufficient to qualify as bona fide operational entities. Centaur Trust, through our “Idalion Business Centre” can offer clients a wide range of physical office solutions, to meet even the most demanding requirements. Incorporating the latest developments in security, IT and communications, the building is ideally designed to meet the needs of our clients well into the future.

The tax law of Cyprus, as reformed, is probably the most modern, effective and simple tax system in the EU and in addition, it conforms to the EU and OECD regulations.

The principle of property rights is a cornerstone of a free society. The right to property is the recognition that an individual has ownership over that property, and may use it as he wishes, and that nobody else can lawfully use it without his authorisation.

More and more these days, governments around the world are focussing on anti-abuse measures, in a bid to combat the non-payment of taxed by their citizens.

Throughout the world the barriers to capital movements are fast disappearing. Tax differences have become a very significant factor in commercial decisions, and therefore investment structures which have the least tax leakage are preferred by investors. During the last decade various European Countries have introduced finance company regimes and nowadays it is very difficult for a multinational group to select the right jurisdiction in which to establish their finance company.

All tax residents of Cyprus are taxed on all income accrued or derived from all sources in Cyprus and abroad. Individuals who are not tax resident so Cyprus are taxed on income accrued or derived from sources in Cyprus only. An individual is a tax resident in Cyprus if he spends more than 183 days in Cyprus in any one year.038