Compliance Review- Cyprus Investment Firms Compliance Review- Cyprus Investment Firms Kyriakos Tramountanellis x / Friday, August 12, 2022 0 115 Article rating: No rating Our observations/comments during the review of some of our clients Compliance Reviews taken place in 2022 Read more
New Audit Requirements New Audit Requirements Kyriakos Tramountanellis x / Wednesday, August 10, 2022 0 179 Article rating: No rating Read more
Διευρυνσή πλαισίου για την προσέλκυση εταιρειών στην Κύπρο. Διευρυνσή πλαισίου για την προσέλκυση εταιρειών στην Κύπρο. Kyriakos Tramountanellis x / Friday, August 5, 2022 0 95 Article rating: No rating Με 50 ψήφους ψηφίστικαν τα νέα μέτρα που έχουν ως σκοπό τη προσέλκυση εταιρειών στη Κύπρο. Read more
Introducing ICARA - New Cysec Requirement for Cyprus Investment Firms Introducing ICARA - New Cysec Requirement for Cyprus Investment Firms Kyriakos Tramountanellis x / Friday, August 5, 2022 0 212 Article rating: No rating The Article is written for the Cyprus Invesment Firms, is the Cysec Requirement for the Internal Capital Adequancy Review assesment. Read more
Director Responsibilities & Misconceptions Director Responsibilities & Misconceptions Kyriakos Tramountanellis x / Thursday, August 4, 2022 0 100 Article rating: No rating The article intends to provide knowledge to the average reader in a summarised and simplified manner regarding the Company's Director's responsibilities. Read more
Cyprus and Crypto Currencies! Some taxation aspects to consider Share Written By CYAUSE Auditors Tags activebitcoinblockchaincoinbasecryptoscryptotaxesCyprusdigitaldigital currencydividendetheriumhow it is taxedpassivetax for cryptostaxationtechnologytokenswallet 2022-01-25 A cryptocurrency is a tradable digital asset or digital form of money, built on blockchain technology that only exists online. Cryptocurrency transactions, including the buying and selling of digital currencies, have increased in popularity across the globe. While some countries have added strict regulations, other countries like Cyprus have embraced the paradigm shift, opening their arms to innovation opportunities. Cryptocurrencies: Bitcoin (BIT) Ethereum (ETH) Litecoin (LTC) Cardano (ADA) Polkadot (DOT) Bitcoin Cash (BCH) Stellar (XLM) Dogecoin (DOGE) Binance Coin (BNB) Legal Requirements CySec has been appointed as the supervising authority to supervise the compliance of Crypto Asset Service Providers with the AML Law. CASPs (Cypto Asset Service Providers) that provide services in or from Cyprus must submit a completed application form, along with relevant questionnaires and any additional information and/or required evidence, in accordance with CySEC’s Announcements. Furthermore, Cryptoassets’ activities are subject to anti-money laundering and counter-terrorism financing (“AML/CFT”) regulation and supervision. See below the policy issued by CySec. Tax Requirements The guidance in relation to the VAT treatment of cryptocurrencies is currently very limited. Cryptocurrencies profits are exempt from VAT, Bitcoin shall be treated as a currency because its main purpose is to be used as a direct means of payment. However, if you regularly make a profit from crypto-transactions, it is safer to do this as a private person with Non-Dom status in Cyprus or by using a “Dividend-Company”, in order to not subject these profits to tax in case the Cyprus Income Tax Office decides to treat it as passive gains. Activities related to DLT (distributed ledger tecnhology) and Virtual Currencies create a series of questions, regarding the imposition of taxation. As a general rule, tokens shall be treated as intangible assets due to their non-physical presence, therefore amortization over maximum 20 years will be allowable. Depending on the intentions of each buyer contributor and their classification, tokens could be treated as pre-payments, investments, intangible assets or stock. Disclaimer: The above are our views as the Cyprus Income Tax Office has not yet issued guidance over the tax classification of these instruments. Similarly we have not yet received sufficient information and eplanatino from CySEC or other regulatory bodies to assist us as to the treatment of these instruments. Transactions with Crypto in Cyprus The University of Nicosia is the first university in the world who accepts Crypto payments! There are currently no Cryptocurrencies ATMs in Cyprus We could not locate anyone else who accepts cryptos in Cyprus. Over the last years, Bitcoin and other decentralised digital currencies disrupted the global economy, bringing a revolution to the way that we perceive the idea of money. The growth of cryptocurrencies in Europe makes the issue of relevant regulations necessary. All the European Union Members will need to adopt a unified position in relation to the VAT treatment of cryptocurrencies and only minor differences will remain. Currently, there is no legislative framework and we don’t follow a set of rules with regards to Crypto investment firms, companies which intend to get involved with cryptocurrencies have to ensure that they follow a reasonable and consistent tax treatment in order to avoid unnecessary disputes with the tax authorities in the future. Useful links: CRYPTO ASSET SERVICES PROVIDERS (CASP). Regulatory Framework (2021) Cysec.gov.cy https://www.cysec.gov.cy/en-GB/entities/crypto-asset-services-providers-casps/ Policy Statement for Crypto Asset Services Providers. Regulatory Framework (2021) Cysec.gov.cy https://www.cysec.gov.cy/CMSPages/GetFile.aspx?guid=13075523-a19e-43d9-8cce-e2c0e0f5bca9 Blockchain Cyprus Strategy. (2021) mof.gov.cy http://mof.gov.cy/assets/modules/wnp/articles/201907/480/docs/blockchain_strategy_english_final.pdf CBC Statement regarding cryptocurrencies / virtual currencies. (2021) centralbank.cy https://www.centralbank.cy/en/announcements/cbc-statement-regarding-cryptocurrencies-virtual-currencies-28-04-2021 Cyprus Securities and Exchange Commission | C417 – Prudential treatment of crypto assets and enhancement of risk management procedures associate. (2019). Cysec.gov.cy. https://www.cysec.gov.cy/CMSPages/GetFile.aspx?guid=2937dc45-aa64-43fc-af9f-07ca5ff02730