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ARTICLE · 26 JULY 2018

Recent Tax Developments In Cyprus - Jul. 23, 2018

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Recent developments in Cyprus have underlined the need for businesses to have real substance in order to operate there and benefit from Cyprus tax residence.

CyprusTax
Michalis Loizou
Michalis Loizou
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Increased Emphasis On Substance

Recent developments in Cyprus have underlined the need for businesses to have real substance in order to operate there and benefit from Cyprus tax residence. Lack of proper substance may lead to denial of benefits under double tax agreements or EU directives, and may also mean that the company concerned is unable to operate a bank account in Cyprus.

The Central Bank of Cyprus circular on "shell" companies and "letter box" companies

On June 14, the Central Bank of Cyprus issued a circular instructing credit institutions it regulates not to open new bank accounts or continue existing accounts with companies that are regarded as "shell" or "letter box" companies. These guidelines are to be incorporated into the Central Bank's anti-money laundering directive in the near future.

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