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It’s not a surprise that nowadays the rise of influencers has reshaped the landscape of traditional marketing worldwide, including Cyprus. Influencers, utilise social media platforms – Instagram, Facebook, YouTube, TikTok – to become powerful faces for different brands. However, as the influencer industry continues to grow, so do the complexities surrounding its taxation, particularly Value Added Tax (VAT).

Since the enforcement of the General Data Protection Regulation (GDPR) in May 2018, European Union member states, have been dealing with the implications and requirements of this landmark legislation. The GDPR is an improved reconstruction of data protection directives and laws from the past, for member states to keeping up pace with the rapid technological developments and globalisation that have been changing the way in which personal data are collected, accessed, and used. In Cyprus, as in other EU member states, Data Protection Officers (DPOs) play a crucial role in overseeing GDPR compliance within organizations.

The Digital Operations Resilience Act (DORA) represents a significant step in strengthening the digital resilience of the financial sector within the European Union. This regulatory framework aims to ensure that all entities in the financial system have the necessary safeguards to mitigate cyber threats and operational disruptions. DORA establishes stringent requirements for digital risk management, mandating rigorous testing and assessment protocols to identify vulnerabilities in digital infrastructures.

We would like to inform you that the Department of the Registrar of Companies and Intellectual Property (the “Department”) has recently announced the following final arrangements regarding the implementation of the electronic system of the Register of Beneficial Owners (the “BO Register”)

On 11 November 2022, Κ.Δ.Π. 423/2022 was published in the Official Gazette, amending 8th Schedule of the VAT law. The aforementioned Schedule regulates the extent to which the supply of immovable property is taxable.

The report highlights the main updates made to integrate the climate models in order to reflect the most recent climate data and economic outlook on macroeconomic variables, used as part of the models, and consequently, on both physical and transition risks.

Whether we are buying coffee, booking a vacation, or making an investment we are producing emissions. It is not so easy to understand how for example the habit of buying a cup of coffee may cause an extreme heat wave in Europe or a flood in Pakistan but remember no single drop of water thinks its responsible for the flood. The impacts of our actions and our way of life is affecting the climate worldwide.

On 13 July 2023, the Advocate Generalof the Court of Justice of the European Union issued an opinion on the Value Added Tax treatment of activities carried out by a member of the board of directors of a company (case C-288/22).

On 30 June 2022, Cyprus opened a new chapter with regards to transactions with controlled parties and Transfer Pricing. Read more.

The Council of Ministers of Cyprus approved, on 10 May, a bill with new tax incentives aimed at attracting foreign talent to Cyprus and encouraging international companies to relocate their headquarters to Cyprus.

EBA published, on the 21st of June 2022, draft principles in assessing representativeness of COVID-19-impacted data in re-calibration of IRB models. The Supervisory handbook that will be published later in 2022 will include these principles, aiming at ensuring a harmonised approach. COVID events and especially the use of moratoria and other public measures may have led to changes in default rates.

The EBA Annual Report was published on the 15th of June 2022, highlighting the main achievements made in 2021, providing an overview of the key priorities for the coming year.

On 26/4/2021 an amendment to the Cyprus VAT Law was published in the official Gazette which exempts from VAT educational services for vehicle technicians.

On 29/4/2021 an amendment to the Cyprus VAT Law was published in the official Gazette which precludes the imposition of penalties in specific cases

The European Commission has issued a press release on 12/4/2021 according to which it has proposed to exempt from Value Added Tax (VAT) goods and services made available by the European Commission, EU bodies and agencies to Member States and citizens during times of crisis.

Following the amendments of the Cyprus VAT Law that were announced in the Government Gazette on 20/08/2020, the Tax Department will impose penalties, as from 1st July 2021, in relation to the non-application of the reverse charge mechanism.