Millions paid by Swiss banks to UK and Austria | Index2Day

Millions paid by Swiss banks to UK and Austria | Index2Day

ENI exploratory drilling in block 9 to start next year | Index2Day

ENI exploratory drilling in block 9 to start next year | Index2Day

The President of the Republic of Cyprus, Nicos Anastasiades, and Eni’s CEO, Paolo Scaroni, met on the 11th July in Nicosia, Cyprus, to discuss Eni’s ongoing activities offshore the island and the company’s future involvement in hydrocarbon activities in Cyprus. Scaroni updated the president of Cyprus on Eni’s plans, confirming that it will start exploratory drilling for natural gas off Cyprus in the second half of 2014. Eni has an 80% participating interest in Blocks 2, 3 and 9 located in the Cypriot deep offshore portion of the Levantine basin. The other partner in the Blocks is the Korean company KOGAS with a 20% participating interest.

Cyprus reported its first offshore natural gas find in 2011. It is currently planning to build a multibillion euro Liquified Natural Gas (LNG) facility in Vassilikos which will consist of at least 3 liquefied natural gas production lines. In this sense, earlier this month Cyprus signed a framework agreement to negotiate the construction of an LNG terminal in Vassilikos Cyprus with US-based Noble Energy and Israel’s Delek and Avner. 

Noble has 70% working interest in the Aphrodite field offshore Cyprus. In late 2011, Noble announced the discovery of the Aphrodite field in Block 12 of offshore Cyprus with a gross mean of 7 tcf. Noble is expected to announce the results of the appraisal drilling in September 2013. Noble told Natural Gas Europe that if the quantities expected are confirmed, one approach for the commercialization of Block 12 natural gas production would be to construct an LNG facility on land identified by the Republic of Cyprus in Vasilikos, where space is available for at least three LNG trains.

ENI could also be interested in participating in the LNG project depending on weather the explorations prove successful or not. 

Cyprus Proposes Tax Amnesty

Cyprus has drafted legislation for a tax amnesty that is meant to encourage taxpayers to bring back any funds hidden overseas. The full details of the proposed amnesty are expected to be revealed in front of the House of Representatives within the next two weeks, and, if approved, would come into effect immediately.

The tax amnesty, which would last until 31 December if approved, would only count for people making a long-term investment, buying government bonds or  depositing the funds with a national bank for a period of at least five years.

No firm estimates have been made yet as to the amount the government expects to be repatriated, as this will depend on the actual provisions of  the legislation. 

http://www.index2day.com/article/cyprus-proposes-tax-amnesty/

Cyprus increases corporate tax

The Cypriot parliament has approved a hike in the country's corporate tax rate from 10% to 12.5%, a measure required by the €10bn EU-IMF bailout. Parliament also approved increasing a levy on profits from deposits from 15 to 30 percent and raised a levy on bank transactions.

Cyprus - Eighth decree for temporary restrictive measures on transactions

Several updates have followed to first Decree regarding the temporary restrictive measures, issued by the Central Bank of Cyprus (CBC) on the 27th of March 2013.

Today a eighth Decree has been published with some modifications to the temporary restrictive measures on transactions.

As mentioned before the credit institutions reopened, the CBC will closely monitor developments and make appropriate adjustments to ensure the stability of the financial sector.

Read here the full text of the Decree, having the changes highlighted.

Cyprus Restrictive Measures on Transactions

The CBC announces that as of today, 28 March 2013, all banks in Cyprus have reopened. For today only, the business hours will be from 12 pm to 6 pm.

In order to safeguard the stability of the Cypriot banking system, it was deemed necessary to implement interim restrictive measures, which will gradually be lifted upon assessment of the situation.

The temporary restrictions are:

1.        The maximum amount of cash withdrawal shall not exceed €300 daily or its equivalent in foreign currency, per person in each credit institution. All cash withdrawals (namely the withdrawals through debit and/or prepaid cards, the withdrawals from the credit institution’s tellers and the withdrawals through credit cards against balance in sight/current account) will be computed per person on a consolidated basis in each credit institution.

2.        If the maximum daily amount of cash allowed is not withdrawn on any given day, it may be withdrawn at any time afterwards.

3.        The cashing of cheques is prohibited.

4.        The following payments are allowed:

(a)     Payments for trade transactions that fall within the normal business of the customer and upon presentation of     supporting documents as follows:

-           Payments of up to €5.000 per day per account are not subject to any restrictive measure.

-           Payments from €5.001 to €200.000 are subject to the approval of the Committee established in the CBC. Credit institutions will need to submit to the Committee the daily total and the number of such payments. The Committee will take a decision within the same day, taking into account the liquidity buffer situation of the credit institution.

-           Payments above €200.000 provided the prior approval of the Committee is obtained after taking into account the liquidity buffer situation of the credit institution.

(b)     Payments for salaries of employees upon presentation of supporting documents.

(c)      Student living expenses up to €5.000 per quarter and tuition fees of first degree relatives of residents studying abroad on the basis of supporting documents. The payment shall be made to the beneficiary.

(d)     Payments and/or transfers outside the Republic, via debit and/or credit and/or prepaid cards, shall not be allowed to exceed €5.000 per person per month in each credit institution.

Cashless payments or transfers of deposits/funds to accounts held abroad or in other credit institutions are prohibited.

5.        Fixed term deposits cannot be terminated prior to their maturity unless the funds are used to repay a loan within the same credit institution.

6.        On the first maturity of fixed term deposits, €5.000 or 10% of the total capital, whichever is the highest, can if the depositor wishes, be transferred to a sight/current account or deposited in a new fixed term deposit in the name of the depositor in the same credit institution. For the remaining amount the maturity shall be extended for 1 month.

7.        Amounts transferred from fixed term deposits in a sight/current account are subject to the restrictive measures applied to sight/current accounts.

8.        Exports of euro notes and/or foreign currency notes exceeding €1.000 or its equivalent in foreign currency per physical person per journey abroad is prohibited, unless the prior approval of the Committee is acquired. The Director of the Customs and Excise Department will be responsible for ensuring that this measure is implemented.

9.        Financial transactions, payments and/or transfers that have not been finalised prior to the date of entry into force of this Decree shall be subject to the restrictive measures. Financial transactions, payments and/or transfers, which have not been processed by credit institutions prior to the date of entry into force of this Decree are cancelled and must therefore be resubmitted.

10.     Credit institutions shall not execute cashless transfers or any other transfers that facilitate the circumvention of the restrictive measures.

11.     The restrictive measures apply to all accounts, payments and transfers regardless of the currency denomination.

12.     Exempted from the restrictive measures are:

(a)     All new funds transferred from abroad.

(b)     Withdrawal of cash using credit and/or debit and/or prepaid cards issued by foreign institutions on accounts abroad.

(c)      The cashing of cheques issued on accounts held with foreign institutions abroad.

(d)     Cash withdrawals from accounts of credit institutions with the Central Bank of Cyprus.

(e)     The Republic of Cyprus.

(f)      The Central Bank of Cyprus.

(g)     The diplomatic missions.

(h)     Payments that have been authorised by the Committee.

Double Tax Treaty signed between Cyprus and Spain

The representatives of Cyprus and Spain signed a double tax treaty agreement on the 14 February 2013. The treaty will enter into force three months after its ratification and for taxes on income and capital at the beginning of the year following the date the treaty enters into force.

The signing of the tax treaty together with the removal of Cyprus from the Spanish “black list” of jurisdictions with privileged tax regimes is expected to encourage investments between the two countries and will effectively reduce Spanish withholding taxes.

The most significant provisions of the treaty are as follows:

Permanent Establishment

The permanent establishment definition included in the treaty is in line with the meaning provided in the OECD model tax convention. In particular, any building site or construction or installation project or any supervisory activities in connection with such site or project constitutes a permanent establishment only if it lasts more than 12 months.

Dividends

• 0% withholding tax applies if the beneficial owner is a company (other than a partnership) holding at least 10% of the capital of the company paying the dividend.

• 5% applies in all other cases.

Interest

• 0% withholding tax.

Royalties

• 0% withholding tax applies with respect to copyrights of literary, artistic or scientific work including films, any patent, trademark, secret formula or process or for information concerning industrial, commercial or scientific experience.

Capital Gains

• Gains from the disposal of immovable property are taxed in the country where the immovable property is situated.

• Gains from the disposal of shares or comparable interests not listed on the Stock Exchange of either country (deriving more than 50% of their value from immovable property), are taxed in the country in which the immovable property is situated. For the purposes of determining the value referred to above, the domestic law of the country where the immovable property is situated applies.

• Gains from the disposal of any other type of shares are taxed in the country of which the seller is resident.