Tax Residency Certificate in Cyprus | New Procedure

On the 30th day of October 2015, the Cyprus Tax Authorities proceeded to the issuance of a Circular (2015/19) introducing the new application form ‘Tax Residency Certificate Request and Questionnaire’ (Form T.D.98), which must be filled and filed for each Tax Residency Certificate request.

How it used to be:

Previously, the procedure to obtain a Tax Certificate for a Company was the following: The company director could request the issuance of a tax residence certificate with a letter and a declaration, stating that the management and control of the Company is exercised in Cyprus. Having submitted the above and provided that the Company requesting the Certificate, was in order with its obligations regarding tax filings, the Certificate was issued.

How it has now changed:

In accordance with the Form T.D.98 and as of 30th day of October 2015, it should be made clear that the management and control of the Company is implemented in Cyprus by way of providing answers to questions regarding:

  • the tax residency of the majority of its Directors;
  • the location where meetings of the Board of Directors take place;
  • whether significant business decisions are taken in Cyprus.

In fact the form is mainly a questionnaire that requires disclosure of information for the Company requesting the Certificate such as:

  • Company details including the company name and tax identification code;
  • Tax residency certificate details, including the period and/or year to be covered;
  • Company’s incorporation and tax residency status;
  • Location of Directors (residency) and board meetings;
  • Location of shareholders’ meetings;
  • Issuance of any Powers of Attorney; the Terms and Conditions of the Powers of Attorney need to be specified.
  • Maintenance of books and records, specifying the location where they are kept;
  • Tax filling and payment status.

Further, the form requires one of the Directors of the Company to confirm that the information provided in the form is true, correct and accurate and that the management and control of the Company is in fact being operated in/through Cyprus.

It is worth noting that through the questions, other information such as whether any general Powers of Attorney have been issued or whether the Company’s seal, as well as all of its accounting books and records, are kept in Cyprus should be answered.

In situations where the request for a Certificate is a prerequisite of a foreign tax authority and the authority requires the completion of a different form, that form must be filled to the Cyprus Tax Authorities along with the application.  Once the submission is completed, the Tax inspector managing the case has the right to contact the Company for any further information and/ or clarifications needed. 

The completed application must be filed to the Accounts/Companies Department of the District Tax Office where the company requesting the Certificate has its tax file. It is important to mention that the new procedure complies with the international developments in the tax field.

We are confident to say that based on our policies and practices the companies that are managed by AGP Group are in a strong position in claiming their Certificates through the new procedure.

In case you require legal advice on the above, our team is at your disposal.