The Legal 500

Legal Developments in Cyprus

• CORPORATE DEPARTMENT NEWSLETTER

  JANUARY 2010 Newsletter
  - George Y Yiangou & Co

• Cyprus re-elected to International Maritime Organisation Council

  At the recent General Assembly of the International Maritime Organisation Cyprus was re-elected to the IMO Council for the next two years. With the support of 134 member states, Cyprus secured the second highest vote in the election.
  - Andreas Neocleous & Co

• ATTRACTING MORE PEOPLE INTO EMPLOYMENT AND IMPROVING THE ADAPTABILITY OF WORKERS AND ENTERPRISES

  The international business environment is ever changing and is becoming one. Various restrictions between countries in the global level are being abolished revealing a new globalised market.
  - Andreas Neocleous & Co

• Simplification of Tax on Interest

  Cyprus has made a number of important changes to its tax laws relating to the participation exemption, the taxation of mutual funds and the taxation of interest. The changes were made by Laws 110(I)/2009 and 111 (I)/2009, amending the Income Tax Law and the Special Contribution for Defence Law respectively.
  - Andreas Neocleous & Co

• Recognition and Enforcement of Foreign Judgments and Foreign Arbitral Awards in Cyprus

  This article deals with the process of recognition and enforcement of foreign judgments and foreign arbitral awards in Cyprus. The article firstly, focuses on the enforcement of foreign judgments under the provisions of the Regulation (EC) No. 44/2001 on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters and Regulation (EC) No. 805/2004 creating a European Enforcement Order for uncontested claims.
  - Michael Kyprianou & Co

• Guidance on Margins for Intermediary Financing Vehicles

  Cyprus tax legislation does not contain specific provisions relating to the thin capitalization of companies, such as limits on debt-to-equity ratios. Therefore, a Cyprus holding company may be financed by loans without the risk of interest that is paid at arm's length to its parent company being disallowed for tax. However, in order to demonstrate that interest is charged on an arm's-length basis, it is important to have an adequate margin between the rate charged to the recipients of the funds on the one hand and the rate paid to the provider of the finance on the other.
  - Andreas Neocleous & Co

• EU Commission approves Cyprus bank liquidity scheme

  The European Commission has approved the Cyprus government’s plan to use special government bonds to reinforce stability in financial markets and mitigate the effects of the current financial downturn under EC Treaty state aid rules. The Commission found the measure to be in line with its Guidance Communication on state aid.
  - Andreas Neocleous & Co

• Taxation of shipmanagement services – early action may be required

  The Cyprus Department of Merchant Shipping has recently issued a circular reminding shipmanagers operating in Cyprus of the arrangements for assessment and payment of their tax liabilities for the fiscal year 2009.
  - Andreas Neocleous & Co

• INTERNATIONAL ARBITRATION

  The only requirement for a valid arbitration agreement and subsequently a valid arbitration procedure in Cyprus is the arbitration clause to be in written form. The Cyprus domestic Arbitration Law Cap. 4 which regulates domestic arbitrations provides that the agreement to refer any present or future disputes to arbitration is irrevocable unless the Court decides otherwise.
  - Andreas Sofocleous & Co

• The International Comparative Legal Guide to: Mergers and Acquisitions 2008

  A practical insight to cross-border Mergers and Acquisitions
  - Andreas Sofocleous & Co