Updates

The three European Supervisory Authorities (EBA, European Insurance and Occupational Pensions Authority ("EIOPA") and ESMA – the ESAs) have published an indicative overview of information and communication technology ("ICT") third-party providers ("TTP") as part of their preparations for the Digital Operational Resilience Act ("DORA").

We would like to inform you that on the 21st of September 2023 the Cyprus Tax Department (“CTD”) issued an announcement regarding a new feature which has been implemented to the platform Tax For All (“TFA”).

The three European Supervisory Authorities (European Banking Authority ("EBA"), European Insurance and Occupational Pensions Authority ("EIOPA") and European Securities and Markets Authority ("ESMA") - "ESAs") issued their Autumn 2023 Joint Committee Report on risks and vulnerabilities in the EU financial system.

We would like to inform you that the Ministry of Finance has issued an announcement extending the deadline for the electronic submission of personal income tax returns (forms TD1) for employees and pensioners for the year 2022 from 2 October 2023 to 31 October 2023. The deadline for settlement of the relevant income tax liability for the year 2022 has also been extended to 31 October 2023.

A unique agreement recently penned between K. Treppides & Co Ltd and the European Institute of Management and Finance (EIMF) offers full-time employment while covering all study costs associated with obtaining EIMF’s accredited Diploma in “Accounting and Financial Management”.

The financial markets regulatory authority; i.e. the Cyprus Securities and Exchange Commission (CySEC and/or the Commission) made an extraordinary effort to discipline the market in Cyprus, especially the CFD providers. The European Securities and Markets Authority (ESMA) and a number of national competent authorities of Member States have expressed their concerns about the Cypriot CFD providers’ practices adopted. Responding to the relevant concerns raised and for restoring the reputation of the Cypriot financial market, CySEC took a number of preventing and remedial measures to address the challenges faced, including the enhancement of its supervisory activities.

The European Banking Authority ("EBA") issued a revised list of validation rules in its Implementing Technical Standards ("ITS") on supervisory reporting, highlighting those, which have been deactivated either for incorrectness or for triggering IT problems.

The Financial Conduct Authority ("FCA") has signalled that in response to industry readiness, it will consider giving cryptoasset firms more time to implement certain changes, for instance, a 24-hour cooling off period.

ESMA, the EU’s financial markets regulator and supervisor, publishes the second Trends, Risks and Vulnerabilities ("TRV") Report of 2023.

The European Banking Authority ("EBA") updated the 13 systemic importance indicators and underlying data for the 32 largest institutions in the EU whose leverage ratio exposure measure exceeds EUR 200 bn.

The Financial Conduct Authority ("FCA") set the expectations for cryptoasset businesses that need to comply with a change in money laundering legislation legislated by government in July 2022.

We would like to inform you that the Cyprus VAT Law N95(I)/2000 has been recently amended in relation to the VAT rate applicable for the provision of certain goods and services.

The European Banking Authority ("EBA") updated its roadmap for the implementation of internal ratings based ("IRB") model requirements to limit compliance costs for institutions.

The European Banking Authority ("EBA") launched a public consultation on draft Regulatory Technical Standards ("RTS") to identify extraordinary circumstances of market disruption, permitting to waive certain requirements for the calculation of own funds requirements for market risk on the basis of internal models. The consultation runs until 3 November 2023.

The European Banking Authority ("EBA") launched a public consultation on its draft guidelines on the establishment and maintenance of national lists or registers of credit servicers under Directive 2021/2167 (the Credit Servicers Directive, CSRD). The consultation runs until 26 October 2023.

We would like to inform you that the personal Income Tax Return (T.D.1 form) for the year 2022, for employees, self-employed individuals, and pensioners, is now available for submission through the TaxisNet system.

The European Banking Authority ("EBA") launched a public consultation on draft templates for collecting climate related data from EU banks.

The European Banking Authority ("EBA") published its fourth biennial Opinion on the risks of Money Laundering and Terrorist Financing ("ML/T"F) affecting the European Union’s financial sector.

The European Banking Authority ("EBA") published its final draft Regulatory Technical Standards ("RTS") on Initial Margin Model Validation ("IMMV") under the European Markets Infrastructure Regulation ("EMIR").

We would like to inform you that the Cyprus Tax Department has issued a Circular on the transfer pricing documentation requirements and simplification measures for transactions which are exempted from the obligation of being documented in a Cyprus Transfer Pricing (“TP”) Local File.

We would like to inform you that an amendment to the Special Defence Contribution (“SDC”) Law was published in the Official Gazette of the Republic on the 9th June 2023 in relation to the deadline for the payment of SDC withheld from rents.

We would like to inform you that the Cyprus Income Tax Law has been amended to extend the benefit of a 50% exemption from income tax which is granted on the remuneration earned for employment exercised in Cyprus by persons who were not tax residents of Cyprus before commencing their first employment in Cyprus, so that taxpayers can benefit from this exemption even if they change employer.

The Financial Conduct Authority ("FCA") has set out new rules to give retail investors and more defined contribution pension schemes access to Long Term Asset Funds ("LTAF").

We would like to bring to your attention that the statutory deadline for the payment of the final tax liability for the year 2022 is on 1st of August 2023. It is noted that the tax liability can be settled until 31st of August 2023, without any interest and penalties.

We would like to bring to your attention that the deadline for the first temporary tax instalment for the tax year 2023 is approaching.

The European Banking Authority ("EBA") published its final draft amending Implementing Technical Standards ("ITS") on supervisory disclosures, which specify the format, structure, contents list and annual publication date of the supervisory information to be disclosed by competent authorities.

We would like to inform you that the Council of Ministers has issued a Decree extending the deadline for the electronic submission of personal income tax returns (forms TD1) for employees and pensioners for the year 2022 from 31 July 2023 to 2 October 2023. The deadline for settlement of the relevant income tax liability for the year 2022 has also been extended to 2 October 2023.

We would like to inform you that on 16th June 2023 it was published in the Official Gazette of the Government and came into effect the legislation that has been voted by the House of Representatives, amending the Cyprus VAT Law N95 (I)/2000 (hereafter “the Law”) in respect to the imposition of the reduced VAT rate 5% on the acquisition/construction of private residence.

European Markets and Securities Authority ("ESMA"), the EU’s financial markets regulator and supervisor, has published its Data Strategy for 2023-2028.

ESMA, the EU’s financial markets and securities regulator, has published an article on the results of the Money Market Funds ("MMFs") stress tests reported to ESMA.