Current news

• Singapore updates its double tax agreement (DTA) with Italy

  
  On 24 May 2011 Singapore signed an additional protocol incorporating an exchange of information protocol within its existing DTA with Italy to continue its efforts to counter international tax evasion. Its completion brings the total number of agreements signed by Singapore that incorporate the internationally-agreed standard for the exchange of information upon request to 28. The original DTA was signed in Singapore on 29 January 1977. The additional protocol will enter into force after its ratification by both countries.

  Published on 27th May 2011

• Amendments to Russia's transfer pricing rules

  
  Amendments to Russia's transfer pricing rules, designed to improve efficiency and reduce tax avoidance, have been welcomed by the OECD, which says such changes would bring them largely in line with international standards. Russia, currently negotiating to become a member of the OECD, published a draft version of new transfer pricing laws on 4 May 2011, the stipulations of which would see improved compliance with the Organization's Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations. Conforming with these internationally-agreed tax standards is, according to the OECD, a key element of accession talks. If approved by the Russian parliament, the new law would come into effect in January 2012.

  Published on 20th May 2011

• Cyprus prepares to amend International Trust Law

  
  Cyprus is gearing up to amend its antiquated International Trust Law in an effort to catch up with global and regional competitive jurisdictions. The proposed changes to the trust law include, inter alia, the introduction of efficient firewall provisions and modern jurisdictional protection clauses that address the security concerns expressed by existing and new foreign investors. The amendment also proposes that permanent residents of Cyprus are allowed to set up an international trust and even hold immovable property on the island. The amendment also addresses issues of confidentiality, trust duration, the application of foreign jurisdictional laws and more. The proposals take into account the realities of the Cyprus economy today and are in compliance with European Union law and directives. The Law is expected to be passed by the new Cyprus Parliament when it first convenes following the parliamentary elections of 22 May 2011.

  Published on 13th May 2011

• Cyprus and Germany revise existing Double Taxation Agreement (DTA)

  
  Cyprus and Germany have signed an agreement for the avoidance of double taxation on income and capital, which replaces an older agreement of 1974 between the two states. The agreement is in compliance with the OECD standard and further enhances the good economic and commercial ties between Cyprus and Germany.

  Published on 25th February 2011

• Russian President's visit to Cyprus boosts is highlighted with the signing of numerous agreements

  
  Russian President Dmitry Medvedev, along with a number of high-ranking government officials, visited Cyprus on 7 October 2010. The purpose of the visit was to discuss a series of high-level financial, cultural and political matters with the Cyprus President Demetris Christofias. The two leaders signed 15 agreements enhancing bilateral ties on sectors such as tourism, commerce, health and security. The highlight of the event was undoubtedly the signing of the new double tax treaty agreement. President Medvedev praised the financial investment made from Cyprus into Russia and expressed his confidence that the double taxation agreement would further enhance the economic cooperation between the two allies. In 2008, Russia had declared Cyprus a “tax haven” on the grounds it was not cooperating enough in exchanging information on bank assets, leading to tax evasion. The signing of a protocol in 2009 led to the removal of Cyprus from the so-called Russian black list of uncooperative jurisdictions.

  Published on 8th October 2010

• Italy removes Cyprus from black list

  
  The Italian Ministry of Economy has issued amendments to the relevant legislation, by which Cyprus and Malta have been removed from the country’s blacklist of tax havens. The Ministry has made the appropriate changes to all three lists of countries considered to have tax systems which favour the avoidance of taxation which include the residence of individual taxpayers, controlled foreign companies (CFCs) and the non-deductibility of corporate costs and expenses. Malta and Cyprus, which are also full member states of the European Union, will now have fully ordinary fiscal status as far as the Italian tax system is concerned. In particular, with effect from the 2010 tax year, those Italian individuals who have attempted to transfer their residence to one of those countries will not have a continued presumed residence in Italy, while there will be no additional tax consequences for those Italian businesses with subsidiaries or associated companies in Malta or Cyprus.

  Published on 6th August 2010

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