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EU Member State Comparative Financial Transaction Tax Survey - Cyprus 

An overview of Cyprus, one of the eight EU Member States considered to apply a tax on financial transactions.

Status

In force

Introduced

1963

Legislative reference

Stamp Duty Law L19/1963

In scope instruments

Securities

Taxable event (transaction)

  • Issuance of securities.
  • Agreements in relation to the sale of securities.

Territorial connection for liability –condition for taxability is:

Residence of issuer?

Yes


Location of transaction (e.g. traded on local stock exchange)?

N/A


Location of party (e.g. at least one party to the transaction is resident)?

N/A


Residence of financial intermediary?

N/A

Other relevant conditions for taxability

The Cypriotic Stamp Duty is applicable on agreements relating to assets/matters in Cyprus (such as agreements on securities of Cypriot companies).

Exempt transactions

Agreements for the sale of securities if listed on a recognized stock exchange.

Agreements for the sale of securities if listed on a recognized stock exchange.

The buyer unless otherwise stated in the agreement.

Liable persons

The buyer unless otherwise stated in the agreement.

Person who in practice bears the tax

The buyer unless otherwise stated in the agreement.

How enforced

Liable persons have to submit the agreements to the Stamp Duty Officer and settle stamp duty within 30 days from the day the agreement is signed.

Penalties in case of failure to file/pay

Penalties vary depending on the initial stamp duty amount and the length of delay but generally 20 percent of the amount of stamp duty due.

Tax base

Value as per agreement

Tax rate(s)

0.15 percent on the first 170,860 euro (EUR) plus 0.2 percent on amounts above EUR170,860 and in principle capped at EUR17.086. On contracts without fixed sum the amount is EUR34.17.

Cap/Floor/Threshold/Allowance

See above

Other comments

N/A


Angelos Gregoriades

KPMG in Cyprus

+357 22 209 245

Margarita Liasi

KPMG in Cyprus

+357 22 209 226

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