CYPRUS: TAX RESIDENCY CERTIFICATE

According to the Circular 2015/19 issued by the Cyprus Inland Revenue there is a new application which needs to be filled in order to issue a Tax Residency Certificate. The details are illustrated below.

Firstly, kindly note that there is no change in the provisions of the Cyprus tax legislation, which provides that a company is considered to be tax resident in Cyprus if the place of its effective management and control is Cyprus. However, there is no definition of management and control in the Cyprus tax legislation.

As per the details of this form (T.D. 98/2015), there are various criteria that goals should meet ensuring that the management and control of the company is being exercised in Cyprus.

The most important criteria are the following:

• The majority of the Board of Directors meetings must be take place in Cyprus.
• The Board of Directors management and control, as well as the commercial decisions necessary for the company’s operations and general policies must be take place in Cyprus.
• The majority of the Board of Directors must be tax residents in Cyprus.
• The Board of Directors’ minutes are prepared and kept in Cyprus.
• The shareholders’ meetings must be take place in Cyprus
• Are the corporate seal and statutory books and records maintained in Cyprus?
• Are corporate filing and reporting functions performed by representatives located in Cyprus?
• All the agreements relating to the company’s business or assets executed or signed in Cyprus and based of the Cyprus law.
• All the company’s tax returns should be filed on time.

In view of the above, we always have to follow the correct procedures regarding majority of Cyprus tax residents directors, management and control and place of Board meetings.

Should you have any inquiries, please contact us.