Cyprus, a prominent and credible international business centre.

Transcription

1 Cyprus, a prominent and credible international business centre. Marios Skandalis President of the Institute of Certified 2 nd EU Arab World Summit, Athens 9-10 Nov Public Accountants of Cyprus

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3 Positive outlook for Cyprus economy. Cypriot Economy continues to accelerate with a projected GDP growth at 2.8% in 2016 Cyprus Economy expanded faster than the EU average in 2016 Steady GDP forecast at 2.5%-3% for ( ) Continuous upgrades by International credit rating agencies (Moody s, S&P, Fitch) 9.1% increase in FDI in nd EU Arab World Summit, Athens 9-10 Nov

4 Aftermath of the financial crisis of 2013: Balanced fiscal budgets and expenditure Improved Banking sector, with better capitalized banks Enhanced anti-money laundering and overall compliance practices Robust Anti-Financial Crime & Transparency Framework 2 nd EU Arab World Summit, Athens 9-10 Nov

5 The development of the Anti-Financial Crime & Transparency Framework 12/ / / / / / / Cyprus implemented the strictest AML regulatory framework in Europe similar to what all other EU member states will adopt in September Tax evasion already a predicated offence Local PEPs 10% threshold on beneficial ownership for legal entities Cyprus fully adopted the provisions of FATCA The Eurogroup has praised Cyprus for its impressive performance and expressed its wish that the fiscal development in Cyprus continue to exceed expectations. The IMF stated for Cyprus economic recovery, Cyprus reform program remains a success and The strong fiscal performance is impressive Cyprus has been upgraded in the Largely Compliant White List of the OECD for its enhanced transparency Early adoption of CRS of the OECD. Following an impressive remedial performance, Cyprus successfully exited the MOU with Troika Enhanced amendments of the AML regulatory framework: Reliance on introducers practically abolished Face to face meeting for introduced customers Enhanced due diligence measures on high risk 3 rd parties Recent audited financial statements/manageme nt accounts for certain clients For the first time ever Cyprus is not included as a country of primary concern in the 2017 International Narcotics Control Strategy Report Money Laundering and Financial Crime Volume issued by the US Department of State Cyprus ranked 1 st in the recent survey carried out by Transparency International (TI) for AML Transparency Measures and Quality of Reporting. The TI report mentioned explicitly that Cyprus disclosed the most complete set of antimoney laundering data among the 12 analysed countries (i.e. USA, UK, Germany, Luxembourg, France, Australia, etc.) 2 nd EU Arab World Summit, Athens 9-10 Nov

6 Invest IN Cyprus: Promotes as a business centre! Financial Services Shipping and maritime services Tourism Real Estate Start-ups & Innovation Energy Investment Funds 2 nd EU Arab World Summit, Athens 9-10 Nov

7 Invest THROUGH Cyprus In any country In any industry or trade Via a holding company regime Taking advantage of the double tax treaties available Converting Cyprus into a business hub! 2 nd EU Arab World Summit, Athens 9-10 Nov

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9 Cyprus competitive advantages High quality of life Geostrategic location EU and Eurozone member Advanced infrastructure Robust legal & regulatory framework Highly skilled human talent Attractive tax regime 2 nd EU Arab World Summit, Athens 9-10 Nov

10 Legal System Fully Transparent Based on UK Common Law Principles Harmonised with International Standards Application of Acquis Communautaire Ease of setting up a company 2 nd EU Arab World Summit, Athens 9-10 Nov

11 Corporate Tax Benefits EU & OECD Compliant / Access to EU directives Wide range of double tax treaties with 60 countries Corporate tax rate at 12,5% Dividend participation exemption No tax on profits from disposal of securities No withholding taxes No taxation of capital gains under conditions Notional Interest Deduction (NID) on investment in Cypriot companies No Controlled Foreign Company (CFC) rules Attractive IP Regime 2 nd EU Arab World Summit, Athens 9-10 Nov

12 Investor Tax Benefits Exempt passive income for non-domiciled individuals Non-domiciled individuals who are tax residents of Cyprus are not subject to defense tax on the following types of passive income earned from sources both within Cyprus or abroad, irrespective of whether it is remitted to Cyprus or not: Dividends Interest Rent 2 nd EU Arab World Summit, Athens 9-10 Nov

13 Accounting & Auditing Companies & Auditors Laws - Compliant with EU Directives and Regulations - All companies have to prepare their financial statements using IFRS and submit them to the Registrar of Companies - Audit is mandatory to all companies, in accordance with International Standards on Auditing. - All companies file audited tax returns to the Tax Authorities 2 nd EU Arab World Summit, Athens 9-10 Nov

14 Immigration and citizenship - Favourable citizenship programme - Citizenship for Senior Management of a Cypriot Company - Access to immigration permits 2 nd EU Arab World Summit, Athens 9-10 Nov

15 Who is ICPAC and how it can help ICPAC is the professional association for all professional accountants in Cyprus. Established in 1961 Numbers more than 4.ooo members and around another students and graduate accountants The only Recognized Body of Accountants and the sole Recognised Body of Auditors in Cyprus by the State. 2 nd EU Arab World Summit, Athens 9-10 Nov

16 ICPAC as a competent authority The Auditors and Statutory Audits of Annual and Consolidated Accounts Law Prevention and Suppression of Money Laundering Activities Laws Law Regulating Companies Providing Administrative Services and Related Matters The Insolvency Practitioners Law Resolutions or Decisions of the United Nations Security Council (Sanctions) and the Decisions and Regulations of the Council of the European Union (Restrictive Measures) 2 nd EU Arab World Summit, Athens 9-10 Nov

17 International Affiliations 2 nd EU Arab World Summit, Athens 9-10 Nov

18 How can ICPAC help Liaise with government and parliament for the passing of bills, including tax bills. Liaise with government to facilitate the flow of international business. Offer EU professional qualifications to non- EU citizens via its joint examination scheme with ACCA. Assist other accountancy bodies and governments of the region on the following: o IFRS training and implementation o VAT and direct tax guidance o Training of Chief Financial Officers o AML training and guidance o Set up affiliations with corresponding bodies 2 nd EU Arab World Summit, Athens 9-10 Nov

19 Tel: [+357] Fax: [+357] Website: 2 nd EU Arab World Summit, Athens 9-10 Nov