Cyprus Business Now

Advisory and consulting firm Deloitte Cyprus this week released its annual tax guide for the current year, which the firm titles ‘Cyprus Tax Facts 2023’.

The tool is a comprehensive guide, offering detailed information to businesses and individuals on the Cyprus tax environment.

It covers important provisions of tax legislation, including amendments passed by the House of Parliament in 2022.

“The world and the economy are constantly evolving. Individuals and businesses need instant access to up-to-date tax information and data on Cyprus’ tax legislation, in order to take strategic decisions and turn challenges into opportunities,” Tax & Legal Services Leader at Deloitte Cyprus Antonis Taliotis said.

“Our annual tax guide brings together all the necessary information for every taxpayer in one comprehensive publication,” he added.

This year’s publication comprises the tax calendar for 2023 and information on tax obligations arising from income tax, the special contribution for defence, capital gains tax, VAT and the General Healthcare System (Gesy). In addition, an updated list of double tax treaties has also been included in the guide.

“Over the years, this guide has become the taxpayer’s tool to the tax environment in Cyprus, for both businesses and individuals,” the company said in a statement.

What is more, the company said the provision of taxation services is one of Deloitte’s core offerings, with an emphasis on business tax, personal tax, indirect tax, including VAT, global employer services, which includes solutions for high net wealth individuals, as well as cross-border tax.

The guide is available in Greek and English on the company’s website.

The zero VAT rate for products and services related to the Covid-19 virus has been abolished as of January 1, 2023, according to an announcement released this week by the Tax Department.

As stated in the announcement, deliveries of in vitro diagnostic medical technology products, vaccines for Covid-19, as well as the provision of services closely related to the above products, do not fall under the zero rate of VAT, as was the case until December 31, 2022.

The announcement noted that a VAT rate of 19 per cent now applies to deliveries of in vitro diagnostic medical technology products and services related to these products, except in cases in which they concern exempt transactions based on the Seventh Appendix of VAT Legislation.

Finally, a VAT rate of 5 per cent is applied for deliveries of vaccines related to Covid-19.

The Industrial Turnover Index in Cyprus recorded an annual increase of 16.9 per cent in October 2022, compared to October 2021, reaching 180 points, according to a report published by the Cyprus Statistical Service (Cystat) on Thursday.

In the manufacturing sector, the index reached 171.5 points in October 2022, marking an increase of 10.4 per cent compared to October 2021.

There was also an increase in the electricity supply sector by 55.4 per cent, as well as mining and quarrying by 29 per cent.

The water supply and material recovery sector saw a decrease of 1.6 per cent compared to October 2021.

For the period January-October 2022, the index registered an increase of 22.2 per cent compared to the corresponding period of the previous year, with the largest increase being observed in the electricity supply sector, with a rise of 65 per cent.

The Cyprus Stock Exchange (CSE) ended Thursday, January 05 with losses.

The general Cyprus Stock Market Index was at 90.62 points at 12:55 during the day, reflecting a drop of 0.04 per cent over the previous day of trading.

The FTSE / CySE 20 Index was at 54.66 points, representing a decrease of 0.05 per cent.

The total value of transactions came up to €29,891.

In terms of the sub-indexes, the alternative index rose by 0.31 per cent, while the investment firm and main indexes fell by 1.15 per cent and 0.25 per cent respectively. The hotel index remained unchanged.

The biggest investment interest was attracted by the Bank of Cyprus (+0.29 per cent), Hellenic Bank (no change), and Demetra Holdings (-1.26 per cent).