Updates

The European Banking Authority ("EBA") published its final draft amending Implementing Technical Standards ("ITS") on supervisory disclosures, which specify the format, structure, contents list and annual publication date of the supervisory information to be disclosed by competent authorities.

We would like to inform you that the Council of Ministers has issued a Decree extending the deadline for the electronic submission of personal income tax returns (forms TD1) for employees and pensioners for the year 2022 from 31 July 2023 to 2 October 2023. The deadline for settlement of the relevant income tax liability for the year 2022 has also been extended to 2 October 2023.

We would like to inform you that on 16th June 2023 it was published in the Official Gazette of the Government and came into effect the legislation that has been voted by the House of Representatives, amending the Cyprus VAT Law N95 (I)/2000 (hereafter “the Law”) in respect to the imposition of the reduced VAT rate 5% on the acquisition/construction of private residence.

European Markets and Securities Authority ("ESMA"), the EU’s financial markets regulator and supervisor, has published its Data Strategy for 2023-2028.

ESMA, the EU’s financial markets and securities regulator, has published an article on the results of the Money Market Funds ("MMFs") stress tests reported to ESMA.

We would like to inform you of the following deadlines for the settlement of taxes due in relation to rental income, dividends and passive interest income.

The EBA launched a public consultation on draft Regulatory Technical Standards ("RTS") and draft Implementing Technical Standards ("ITS") on the functioning of supervisory colleges under the Capital Requirements Directive ("CRD").

The three European Supervisory Authorities (European Banking Authority, European Insurance and Occupational Pensions Authority and European Securities and Markets Authority – "ESAs") jointly submitted to the European Commission Draft Regulatory Technical Standards ("RTS") on the Environmental, Social, and Governance ("ESG") impact disclosure for Simple, Transparent and Standardised ("STS") securitisations under the Securitisation Regulation ("SECR").

The three European Supervisory Authorities (European Banking Authority, European Insurance and Occupational Pensions Authority and European Securities and Markets Authority – "ESAs") published an interactive factsheet to help consumers understand how the recent increases in inflation and interest rates can affect their money.

The European Banking Authority ("EBA") published its draft Regulatory Technical Standards ("RTS") on the scope and methods of consolidation of an investment firm group under the Investment Firms Regulation ("IFR").

The European Banking Authority ("EBA") published its annual Report on convergence of supervisory practices for 2022.

The three European Supervisory Authorities (European Banking Authority, European Insurance and Occupational Pensions Authority and European Securities and Markets Authority - "ESAs") issued their Spring 2023 Joint Committee Report on risks and vulnerabilities in the EU financial system.

The European Banking Authority ("EBA") launched a public consultation on its draft guidelines on the criteria related to simplicity, standardisation and transparency and additional specific criteria for on-balance-sheet securitisations ("STS criteria").

The three European Supervisory Authorities (European Banking Authority, European Insurance and Occupational Pensions Authority, and European Securities and Markets Authority - "ESAs") have published a Consultation Paper with amendments to the Delegated Regulation of the Sustainable Finance Disclosure Regulation ("SFDR").

Sustainability is the key to a better, healthier, and more viable future as it improves the quality of our lives with the use of natural resources which protect our ecosystem in general. By taking into consideration the three pillars of economic viability, environmental protection, and social well-being, we can preserve the future generations’ needs while, from a corporate perspective, the development of sustainable strategies can lead to a company’s longevity.

The Management of K. Treppides & Co Ltd is committed to develop leaders who derive from own people and who pursue excellence in the provision of high quality specialised and unique services. We are pleased to announce the appointment of the following members on the Board of Management effective as of 1 April 2023.

The European Banking Authority ("EBA") published its quarterly Risk Dashboard ("RDB") together with the first edition of the RDB on minimum requirement for own funds and eligible liabilities ("MREL").

The European Banking Authority ("EBA") launched a public consultation on amendments to its guidelines on risk-based anti-money laundering and countering the financing of terrorism ("AML/CFT") supervision. The proposed changes extend the scope of these guidelines to AML/CFT supervisors of crypto-asset service providers ("CASPs"). The consultation runs until 29 June 2023.

We would like to inform you that the Cyprus Tax Department has published the 10-year government bond yield rates as of 31 December 2022 for a number of countries in relation to the Notional Interest Deduction (NID) on equity.

We would like to inform you that the first phase of the new platform Tax For All (TFA) has been officially launched by the Cyprus Tax Department (“CTD”). As from today, VAT and VIES II returns will only be submitted through the TFA platform.

The European Banking Authority ("EBA") launched  a public consultation on its draft Implementing Technical Standards ("ITS") amending the ITS on specific reporting requirements on market risks (FRTB reporting), aiming at providing supervisors with the necessary tools to monitor these risks.

The Cyprus Tax Department publishes additional “Frequently Asked Questions” (FAQs) in relation to Transfer Pricing Documentation rules.

We would like to inform you that on the 6th of December 2022, the Department of Taxation (DoT) issued Circular 11/2022 which clarifies the VAT treatment applicable for food supply services, further to the decision issued by the Cyprus Administrative Court (“CAC”) in relation to the legal case “Lamane Ltd vs Republic of Cyprus”.

The European Banking Authority ("EBA") published a Handbook on supervisory benchmarking of internal models. The Handbook is an online tool that provides guidance and links to relevant documents and information for the supervisory benchmarking to facilitate their accessibility.

We would like to inform you that the first stage of implementation of the new Single Tax Administration Portal - Tax For All - (TFA), which will progressively replace (amongst others) the TAXISnet platform has been finalized and the new platform will go live on 27 March 2023.

The Management of K. Treppides & Co Ltd is committed to develop leaders who derive from own people and who pursue excellence in the provision of high quality specialised and unique services. We are pleased to announce the appointment of the following member on the Board of Management effective as of 1 March 2023.

The European Insurance and Occupational Pensions Authority ("EIOPA") published corrected updated representative portfolios that will be used for calculation of the volatility adjustments ("VA") to the relevant risk-free interest rate term structures for Solvency II.

We would like to inform you that as per the Decree No. 510/2022 published in the official Gazette of the Republic, the public interest rate imposed on any overdue or refundable taxes has been increased from 1.75% per annum to 2.25% per annum. The new rate of 2.25% is applicable as from 1 January 2023.

Potential DAC6 implications in relation to the addition of BVI, Costa Rica, Marshall Islands and Russia in EU list of non-cooperative jurisdictions for tax purposes.

The European Banking Authority ("EBA") published a no-action letter stating that competent authorities should not prioritise any supervisory or enforcement action in relation to the new banking book - trading book boundary provisions.