All material subject to strictly enforced copyright laws. © 2022 ITR is part of the Euromoney Institutional Investor PLC group.

Cyprus: Timeframes for registration of Cyprus international trusts

michaelides.jpg

Antonis Michaelides

The Law Regulating Companies Providing Administrative Services and Related Matters, Law 196(I)/2012 (the Fiduciaries Law) was enacted in December 2012 establishing a licensing and supervisory body for corporate and fiduciary services providers as per Directive 2005/ 60/EC of the EU. Pursuant to Cyprus's commitment to transparency and enhanced regulations, on September 9 2013 Law 109(I)/2013 amended the Fiduciaries Law in respect to the disclosure of information on Cypriot international trusts.

More precisely, Section 3(7) of the Fiduciaries Law (as amended) provides that trustees and service providers will need to identify and verify to their respective supervisory body (that is Cyprus Bar Association, Cyprus Securities and Exchange Commission and the Institute of Certified Public Accountants of Cyprus) the name of the trusts, the trustees' names at all times, the date of creation and termination of trusts and the date of any change in the law governing the trusts.

The timeframe for disclosing the above information to the competent authority for trusts established on or after September 9 2013 is 15 days from their establishment or the adoption of Cyprus law as the governing law of the trust. As for trusts already in existence on September 9 2013, the relevant information must be submitted within six months of the entry into force of the amending law, that is to say, before March 9 2014. A notification on any subsequent changes in any of the information mentioned above must be also submitted within 15 days from the date the change took place.

Failure to do so within the above timeframes constitutes a criminal offence that entails a sentence of imprisonment for up to five years, a fine of up to €350,000 ($483,000) or both.

It should be highlighted that the trust register maintained by the competent authority is not available to the public but may only be available for inspection by other competent authorities if requested. The authorities are exploring the adoption of an electronic submission system so as to expedite the process.

This development is certainly a serious step towards Cyprus's commitment to keep up with the global developments in regards to anti-money laundering compliance and enhanced transparency in an era when strict confidentiality is increasingly combated. However, Cypriot trustees and service providers must be henceforth very careful in complying with the above requirements within the provided deadlines so as to operate within the requirements of the law and of course avoid any potential fines/liability.

Antonis Michaelides (antonis.michaelides@eurofast.eu)

Eurofast, Cyprus Office

Tel: +357 22 699 222

Website: www.eurofast.eu

more across site & bottom lb ros

More from across our site

Ramesh Khaitan speaks to reporter Siqalane Taho about tax morality, transfer pricing regulations, Indian tax developments, and the OECD’s two-pillar solution.
Join ITR and KPMG China at 10am BST on October 19 as they discuss the personal, employment, and corporate tax-related implications of employees working from overseas.
Tricentis and Boehringer Ingelheim, along with a European Commission TP specialist, criticised the complexity of pillar one rules and their scope at an ITR event.
Speakers at ITR’s Managing Tax Disputes Summit said taxpayers can still face lengthy TP audits, despite strong documentation preparation
Gig economy companies in New Zealand will need to fully account and become liable for the goods and services tax of underlying suppliers on their platforms, under new proposals.
Join ITR and Thomson Reuters at 2pm (UAE) / 11am (UK) on October 13 as they discuss how businesses can prepare for Tax Administration 3.0 and future-proof against changes such as e-invoicing and increasing digitisation.
ITR has partnered with global TP leaders from Deloitte to discuss transfer pricing controversy around the globe, and to share advice on how to navigate an increasingly uncertain and risky TP landscape.
Sources say they are not satisfied with pillar one protections in the marketing and distribution safe harbour, even though it was designed to give businesses greater tax certainty.
Political support for qualified majority voting is at a peak as unanimity rules continue to block the European Council from passing a directive on pillar two.
The winners of the ITR Americas Tax Awards have been announced for 2022!
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree