Cyprus glossary · 2026 edition
Cyprus tax & legal glossary
Search 240 plain-English definitions across Cyprus tax, company law, VAT, immigration and accounting. Each new definition links to an official reference.
240 definitions, A–Z
0–9
- 183-day rulealso: 183 day rule
- The default Cyprus tax-residency test: spend more than 183 days in Cyprus in a calendar year and you are automatically Cyprus tax-resident.Read the full guide →
- 60-day rulealso: 60 day rule
- A Cyprus tax-residency route that qualifies you with just 60 days a year in Cyprus (instead of the standard 183 days), if you meet the other conditions (Cyprus home, Cyprus business/employment/directorship, ≤183 days in any other single country). The 2026 reform removed the prior 'not tax resident anywhere else' condition.Read the full guide →
A
- accounting policy
- A principle or method an entity applies when recognising, measuring or presenting transactions.Official reference ↗
- accrual accounting
- Recording income and expenses when earned or incurred rather than only when cash moves.Official reference ↗
- advance pricing agreement
- An arrangement with a tax authority on a transfer-pricing approach for specified future transactions.Official reference ↗
- amortisation
- Systematic allocation of an intangible asset's depreciable amount over its useful life.Official reference ↗
- annual general meeting
- A members' meeting held for annual company business where required by law.Official reference ↗
- anti-money laundering
- Measures intended to prevent the use of financial or professional services to disguise proceeds of crime.Official reference ↗
- arm's-length principle
- The standard that related-party terms should reflect what independent parties would agree in comparable circumstances.Official reference ↗
- Article 20Ealso: Art. 20E, crypto tax
- The new Cyprus crypto tax regime effective 1 January 2026. Taxes qualifying crypto capital gains at a flat 8% for Cyprus tax residents who elect in.Read the full guide →
- Article 8(23A)also: 50% expat exemption, high-earner exemption
- A Cyprus personal-income-tax exemption that shields 50% of Cyprus employment income for up to 17 years for qualifying new residents, subject to a minimum-income threshold.
- articles of association
- A company's internal rules on matters such as directors, shareholder meetings and share transfers.Official reference ↗
- assessable income
- Income brought into a tax calculation before all permitted deductions or reliefs are applied.Official reference ↗
- asset
- A present economic resource controlled by an entity as a result of past events.Official reference ↗
- associated enterprise
- A business linked to another through ownership, control or participation for transfer-pricing purposes.Official reference ↗
- ATADalso: EU Anti-Tax Avoidance Directive
- EU Directive that harmonises anti-avoidance rules across member states: CFC rules, interest-limitation, exit taxation, GAAR and hybrid-mismatch rules.
B
- B2B supply
- A supply to a business customer; VAT treatment depends on the type and place of the transaction.Official reference ↗
- B2C supply
- A supply to a consumer; VAT treatment depends on the type and place of the transaction.Official reference ↗
- Basic Package
- Zeno's company registration tier from €1,050. It includes incorporation, UBO and applicable tax registrations, a company stamp and digital certificates. You provide the registered office, secretary and bank account. There is no Zeno annual renewal fee for Basic.Read the full guide →
- beneficial owner of income
- A treaty concept used to test entitlement to certain reduced withholding-tax rates.Official reference ↗
- beneficial ownership register
- The official register recording natural persons who ultimately own or control relevant legal entities.Official reference ↗
- BEPSalso: Base Erosion and Profit Shifting
- The OECD-led project to close international tax-planning gaps. Includes measures like Action 5 (harmful regimes), Action 7 (PE), Action 13 (TP documentation) and the Multilateral Instrument.
- biometric data
- Physical identifiers, such as a photograph or fingerprints, collected for certain residence documents.Official reference ↗
- board of directors
- The group of directors responsible for company management and oversight.Official reference ↗
- board resolution
- A decision formally approved by the directors under the company's rules.Official reference ↗
- branch registration
- Registration of a foreign company's place of business in Cyprus without creating a separate Cyprus company.Official reference ↗
- business profits article
- A treaty provision allocating taxing rights over an enterprise's profits, usually with a permanent-establishment condition.Official reference ↗
C
- capital gains article
- A treaty provision allocating taxing rights over gains from selling assets.Official reference ↗
- carrying amount
- The amount at which an asset or liability is recognised in the statement of financial position.Official reference ↗
- cash flow statement
- A statement classifying cash inflows and outflows by operating, investing and financing activities.Official reference ↗
- centre of vital interests
- A treaty residence factor examining where an individual's personal and economic relations are closer.Official reference ↗
- certificate of directors and secretary
- A Registrar-issued certificate showing the company officers recorded on the register.Official reference ↗
- certificate of good standing
- A certificate indicating a company's recorded legal status on the date of issue; it is not a solvency guarantee.Official reference ↗
- certificate of incorporation
- The Registrar's certificate confirming that a company has been legally incorporated.Official reference ↗
- certificate of registered office
- A Registrar-issued certificate confirming the registered address held on the company record.Official reference ↗
- CFCalso: Controlled Foreign Company, CFC rules
- Rules in most EU home countries (ATAD) that tax a resident shareholder on the undistributed profits of a foreign company they control — especially if that company has limited substance.
- CGTalso: Capital Gains Tax
- Cyprus CGT applies at 20% to gains from Cyprus immovable property and shares in companies holding such property. Shares of non-real-estate Cyprus companies are fully exempt.
- company name reservation
- A Registrar process for checking and reserving a proposed company name before incorporation.Official reference ↗
- company number
- The unique identification number assigned to a company by the Registrar.Official reference ↗
- company redomiciliation
- A statutory continuation of a company from one jurisdiction to another where both legal systems permit it.Official reference ↗
- company secretary
- A statutorily required officer of a Cyprus company (Companies Law Cap. 113). Responsible for statutory filings, maintaining the statutory registers, and calling meetings. Most firms provide this as a nominee service.
- comparability analysis
- An assessment of whether transactions or businesses are sufficiently similar for a pricing comparison.Official reference ↗
- comparable uncontrolled price
- A transfer-pricing method comparing a controlled price with a suitable independent-party price.Official reference ↗
- conflict of interest
- A situation where a decision-maker's personal interests may interfere with duties owed to the company.Official reference ↗
- consolidated accounts
- Financial statements presenting a parent and its subsidiaries as a single economic group.Official reference ↗
- contingent liability
- A possible obligation, or one not recognised as a liability, that may require disclosure.Official reference ↗
- controlled transaction
- A transaction between associated enterprises whose price or terms may be tested under transfer-pricing rules.Official reference ↗
- corporate capacity
- A company's legal ability to enter transactions and hold rights and obligations.Official reference ↗
- corporate veil
- The legal separation between a company and its members, which can have limited exceptions.Official reference ↗
- cost plus method
- A method adding an appropriate gross mark-up to the supplier's relevant costs.Official reference ↗
- customer due diligence
- Checks to identify and verify a customer and, where relevant, the people who ultimately control them.Official reference ↗
- Cyprus Baralso: Cyprus Bar Association
- The regulator for Cyprus lawyers and law firms. Legal work delivered through Zeno is performed by independent Cyprus Bar-licensed advocates; Zeno itself is the brand and the single point of contact for clients.
D
- data controller
- The person or organisation that determines the purposes and means of processing personal data.Official reference ↗
- data processing
- An operation performed on personal data, such as collecting, storing, using or erasing it.Official reference ↗
- data processor
- A person or organisation processing personal data on a controller's behalf.Official reference ↗
- data subject
- The identified or identifiable person to whom personal data relates.Official reference ↗
- DDDalso: deemed dividend distribution
- A Cyprus tax rule that deemed undistributed profits distributed (and taxable) after two years. DDD was abolished for Cyprus non-dom residents in the 2026 reform.
- dependent agent
- A person acting for an enterprise whose activities may create a permanent establishment under treaty rules.Official reference ↗
- depreciation
- Systematic allocation of a tangible asset's depreciable amount over its useful life.Official reference ↗
- director
- A person appointed to the board to manage or oversee a company's affairs.Official reference ↗
- director's duty of care
- A director's obligation to exercise appropriate care, skill and diligence in performing the role.Official reference ↗
- distance sale
- A sale of goods to a consumer in another jurisdiction, subject to special VAT place-of-supply rules.Official reference ↗
- dividend declaration
- A formal decision to distribute eligible company profits to shareholders under applicable rules.Official reference ↗
- dividends article
- A treaty provision allocating taxing rights over dividends between source and residence states.Official reference ↗
- document apostille
- A certificate authenticating the origin of a public document for use under the Hague Apostille Convention.Official reference ↗
- domicile
- A legal concept connecting a person to a jurisdiction as their enduring home; it differs from residence.Official reference ↗
- domicile of choice
- A domicile acquired through residence in a place combined with an intention to make it a permanent home.Official reference ↗
- domicile of origin
- The domicile normally assigned at birth under private-law rules, subject to later change.Official reference ↗
- double taxation
- Taxation of the same income or gain in two jurisdictions, potentially relieved by domestic law or a treaty.Official reference ↗
- DTTalso: double tax treaty
- A bilateral treaty between Cyprus and another country that prevents double taxation and allocates taxing rights. Cyprus has 65+ active DTTs, including with all major EU states.
E
- employee contribution
- The portion of a statutory social-insurance contribution deducted from an employee's pay.Official reference ↗
- employer contribution
- The portion of a statutory social-insurance contribution paid by an employer in addition to wages.Official reference ↗
- employer registration
- Enrolment of an employer with Cyprus Social Insurance Services before employing staff.Official reference ↗
- employment contract
- An agreement setting out the parties' employment rights and obligations, subject to mandatory law.Official reference ↗
- employment income article
- A treaty provision allocating taxing rights over income from employment across borders.Official reference ↗
- enhanced due diligence
- Additional checks applied where money-laundering or terrorist-financing risk is higher.Official reference ↗
- Enterprise Package
- Zeno's company registration tier from €3,900, with annual renewal from €1,850. It adds a Cyprus-resident nominee director, local banking assistance and partner-level governance support to Standard. A director's residence alone does not establish or guarantee company tax residence.Read the full guide →
- equity
- The residual interest in an entity's assets after deducting its liabilities.Official reference ↗
- EU registration certificate
- The document issued to a qualifying EU citizen registering residence in Cyprus; often called MEU1.Official reference ↗
- exchange of information
- A treaty mechanism allowing tax authorities to share information relevant to administering tax laws.Official reference ↗
- expense
- A decrease in economic benefits recognised for a period, other than distributions to owners.Official reference ↗
- export of goods
- A supply involving goods leaving the EU customs territory, potentially qualifying for VAT exemption with evidence.Official reference ↗
- extraordinary general meeting
- A general meeting called to deal with member business outside the annual meeting.Official reference ↗
F
- fair value
- An exit-price measurement based on an orderly transaction between market participants at the measurement date.Official reference ↗
- family reunification
- An immigration route allowing qualifying family members to join a resident under applicable rules.Official reference ↗
- fiduciary duty
- A duty to act loyally and in the interests of the person or entity to whom the duty is owed.Official reference ↗
- financial statements
- Structured reports of an entity's financial position, performance and cash flows for a reporting period.Official reference ↗
- fixed place of business
- A physical place through which an enterprise conducts business; relevant to permanent-establishment analysis.Official reference ↗
- foreign tax credit
- Relief that may reduce domestic tax when qualifying tax has already been paid abroad on the same income.Official reference ↗
- functional analysis
- A review of the functions, assets and risks of parties to a related-party transaction.Official reference ↗
G
- GESYalso: GeSY, National Health System
- Cyprus General Healthcare System. Funded by contributions from employees (2.65%), employers (2.90%), self-employed (4%) and other income types, capped at €180,000 of total contribution base per year.
- going concern
- The basis that an entity will continue operating for the foreseeable future unless evidence indicates otherwise.Official reference ↗
- gross income
- Income measured before deducting allowable costs, taxes or other adjustments.Official reference ↗
- gross salary
- Contractual pay before income-tax withholding, employee contributions and other deductions.Official reference ↗
- group relief
- A mechanism allowing qualifying losses to be used within an eligible corporate group.Official reference ↗
H
- habitual abode
- A treaty residence factor considering where a person ordinarily lives over a relevant period.Official reference ↗
- HE32also: annual return
- The annual return filed with the Cyprus Registrar of Companies. Confirms directors, shareholders, registered office and share capital. Filed within 28 days of the AGM.
I
- ICPAC
- The Institute of Certified Public Accountants of Cyprus — the regulator for statutory auditors and accounting practitioners in Cyprus. Our audit work is performed by independent ICPAC-licensed auditors.
- IFRSalso: International Financial Reporting Standards
- The accounting standards Cyprus companies use to prepare statutory accounts. IFRS-for-SMEs is also permitted for companies meeting the size thresholds.
- immovable property income
- Income from real property, commonly addressed by a dedicated tax-treaty article.Official reference ↗
- impairment
- A reduction in an asset's recognised value when the applicable recoverability test requires it.Official reference ↗
- import VAT
- VAT arising when goods are brought into the EU from outside it, subject to applicable reliefs.Official reference ↗
- indirect ownership
- Ownership held through one or more intermediate persons or entities rather than directly.Official reference ↗
- input VAT
- VAT incurred on purchases that may be deductible under the VAT rules.Official reference ↗
- insurable earnings
- Employment income counted when calculating social insurance contributions, subject to applicable rules.Official reference ↗
- interest article
- A treaty provision allocating taxing rights over interest payments.Official reference ↗
- intra-Community acquisition
- A qualifying purchase of goods moved from one EU member state to another.Official reference ↗
- intra-Community supply
- A qualifying supply of goods moved between EU member states under the EU VAT rules.Official reference ↗
- IOSS
- The EU Import One Stop Shop scheme for declaring VAT on eligible low-value imported goods sold to EU consumers.Official reference ↗
- IP Boxalso: IP Box regime, Cyprus IP Box
- A preferential tax regime that gives an 80% deduction on qualifying IP profits. Post-2026 corporate rate, the effective rate on qualifying IP income is approximately 3%.Read the full guide →
K
- know your customer
- Common shorthand for customer-identification and verification controls used in regulated onboarding.Official reference ↗
L
- liability
- A present obligation to transfer an economic resource as a result of past events.Official reference ↗
- limited liability
- A limit on an owner's liability for company debts; it does not remove personal liability for guarantees or misconduct.Official reference ↗
- liquidation
- A formal process of realising assets, paying creditors and bringing a company to an end.Official reference ↗
- local file
- Entity-level transfer-pricing documentation covering material related-party transactions and their pricing analysis.Official reference ↗
- loss carryforward
- Use of an eligible tax loss against taxable profits of later periods, subject to legal conditions.Official reference ↗
M
- master file
- Group-level transfer-pricing documentation describing the multinational business and its overall policies.Official reference ↗
- materiality
- The significance of information that could reasonably influence users' decisions if omitted or misstated.Official reference ↗
- memorandum of association
- The constitutional document stating a company's name and permitted objects under the applicable company law.Official reference ↗
- MEU2 residence card
- The residence card for a qualifying non-EU family member of an EU citizen living in Cyprus.Official reference ↗
- MEU3 permanent residence
- Documentation of a qualifying EU citizen's permanent residence right in Cyprus.Official reference ↗
- mutual agreement procedure
- A treaty process in which competent authorities seek to resolve taxation inconsistent with the treaty.Official reference ↗
N
- net income
- Income after specified expenses or deductions; its exact meaning depends on the calculation.Official reference ↗
- net salary
- The amount paid after applicable payroll deductions from gross salary.Official reference ↗
- nexus ratioalso: modified nexus approach
- The OECD formula (BEPS Action 5) that limits IP Box benefits to R&D genuinely done by the company. Calculated per asset as (qualifying expenditure × 1.30) ÷ overall expenditure, capped at 1.00.
- NIDalso: Notional Interest Deduction
- A Cyprus tax deduction on new equity capital, calculated on a reference rate (10-year government yield + 5% margin). Capped at 80% of taxable profit per year.
- nominal value
- The face value assigned to a share, distinct from its market price or subscription premium.Official reference ↗
- nominee director
- A Cyprus-resident professional appointed to the board of a Cyprus company in place of the beneficial owner. Commonly used to satisfy the place-of-effective-management test and to access the 60-day rule.
- non-discrimination article
- A treaty provision limiting specified discriminatory taxation based on nationality or comparable circumstances.Official reference ↗
- non-domalso: non-domiciled, non-dom status
- Cyprus non-domiciled status. Exempts worldwide dividend and interest income from Cyprus Special Defence Contribution (SDC) for 17 years, extendable to 27 years via two €250,000 five-year extensions.Read the full guide →
- non-Union OSS
- An EU one-stop-shop scheme for certain services supplied by non-EU businesses to EU consumers.Official reference ↗
- notes to the accounts
- Disclosures explaining accounting policies, figures, judgements and risks in financial statements.Official reference ↗
O
- ordinary resolution
- A shareholder resolution passed by the ordinary voting majority required by company law.Official reference ↗
- OSSalso: One Stop Shop
- EU VAT simplification allowing eligible cross-border B2C sales to be declared through one participating member state. The separate IOSS scheme covers eligible low-value imports.
- out-of-scope transaction
- A transaction outside the charging provisions of the VAT system; it is not the same as an exempt supply.Official reference ↗
- output VAT
- VAT a business charges or accounts for on its taxable sales.Official reference ↗
P
- participation exemptionalso: Cyprus participation exemption
- Cyprus tax relief that exempts gains on the sale of subsidiary shares (non-real-estate) from corporate tax at the holding level. Key tool in Cyprus holding structures.Read the full guide →
- PAYEalso: Pay As You Earn
- The Cyprus system for withholding personal income tax on employee salaries at source. Employers remit PAYE monthly using Form TD7 alongside social insurance and GESY contributions.
- payroll
- The records and process used to calculate wages, deductions, contributions and net payments to employees.Official reference ↗
- payslip
- A statement showing an employee's pay and the deductions applied for a pay period.Official reference ↗
- PEalso: Permanent Establishment
- A fixed place of business (or dependent agent) through which a foreign enterprise is treated as taxable in a country. Cyprus applies the OECD Model Article 5 definition.Read the full guide →
- permanent residence
- A longer-term residence status available when the relevant immigration conditions are met.Official reference ↗
- personal data
- Information relating to an identified or identifiable natural person.Official reference ↗
- Pillar Twoalso: GloBE, 15% minimum tax
- OECD's global minimum tax framework. Applies a 15% effective tax rate to multinational groups with revenue over €750 million, via a top-up tax in each jurisdiction.
- Pink Slipalso: temporary residence permit
- The Cyprus temporary residence permit for non-EU nationals. Issued under various categories (Category F, Digital Nomad, Employment) and renewable annually.Read the full guide →
- place of supply
- The jurisdiction in which a transaction is treated as taking place for VAT purposes.Official reference ↗
- POEMalso: place of effective management, management and control
- The place where a company's board makes strategic decisions. For Cyprus to tax a company as resident, POEM must be in Cyprus — usually evidenced by a Cyprus-resident majority board meeting physically in Cyprus.
- politically exposed person
- A person entrusted with a prominent public function, potentially subject to enhanced financial-crime checks.Official reference ↗
- preparatory activity
- An activity that may fall within a treaty exception to permanent-establishment status if the treaty conditions are met.Official reference ↗
- principal purpose test
- A treaty anti-abuse rule that can deny a benefit where obtaining it was a principal purpose of an arrangement.Official reference ↗
- profit or loss
- The period's income less expenses recognised in profit or loss under the applicable accounting standards.Official reference ↗
- profit split method
- A method dividing combined transaction profits between related parties on an economically supported basis.Official reference ↗
- provision
- A liability with uncertain timing or amount recognised when the accounting criteria are met.Official reference ↗
- proxy
- A person authorised to attend or vote at a meeting on another member's behalf.Official reference ↗
- public company
- A company formed under rules that permit it to offer shares to the public, subject to applicable securities law.Official reference ↗
Q
- quorum
- The minimum number of eligible participants required for a meeting to make valid decisions.Official reference ↗
R
- register of directors
- The statutory record of a company's current and former directors, as required by law.Official reference ↗
- register of members
- The statutory record of the people or entities holding shares in a company.Official reference ↗
- registered business name
- A business name entered on the Registrar's records under the applicable registration procedure.Official reference ↗
- registered office
- The statutory Cyprus address of a company, filed with the Registrar of Companies. All official correspondence (tax, court, registry) is sent there. Must be an actual physical address in Cyprus.
- resale price method
- A method starting from an independent resale price and subtracting an appropriate gross margin.Official reference ↗
- residence permit renewal
- An application to extend a permit before or around its expiry under the rules for that category.Official reference ↗
- residence state
- The jurisdiction in which a person is treated as tax resident under domestic law and a treaty.Official reference ↗
- revenue
- Income arising in the course of an entity's ordinary activities under the applicable accounting standard.Official reference ↗
- reverse charge
- A VAT mechanism under which the customer, rather than the supplier, accounts for the tax.Official reference ↗
- royalties article
- A treaty provision allocating taxing rights over payments for specified intellectual-property rights.Official reference ↗
S
- sanctions screening
- Checking parties against applicable restrictions and sanctions lists before or during a relationship.Official reference ↗
- SDCalso: Special Defence Contribution
- Cyprus Special Defence Contribution — a separate tax on dividends, interest and rental income. 5% on dividends for Cyprus-domiciled residents from 2026; 0% for non-doms.Read the full guide →
- self-assessment
- A tax process in which the taxpayer calculates and declares the amount due in a return.Official reference ↗
- separate legal personality
- The principle that an incorporated company has legal rights and obligations distinct from its members.Official reference ↗
- solvency
- A company's ability to meet debts as they fall due, considered in decisions such as distributions and restructuring.Official reference ↗
- source of funds
- An explanation and evidence of where money for a specific transaction came from.Official reference ↗
- source of wealth
- An explanation and evidence of how a person accumulated their overall wealth.Official reference ↗
- source state
- The jurisdiction from which treaty-relevant income is considered to arise.Official reference ↗
- special resolution
- A shareholder resolution requiring a higher voting threshold for specified corporate actions.Official reference ↗
- Standard Package
- Zeno's company registration tier from €2,300, with annual renewal from €950. It adds a registered office, company secretary, online banking assistance, AML and UBO updating, plus an account manager and ongoing guidance to the Basic scope.Read the full guide →
- statement of changes in equity
- A report reconciling movements in an entity's equity between the start and end of a period.Official reference ↗
- statement of financial position
- An IFRS statement showing assets, liabilities and equity at a reporting date.Official reference ↗
- statutory register
- A company record required by law, such as a register of members or directors.Official reference ↗
- striking off
- The Registrar's removal of a company from the register under the applicable statutory process.Official reference ↗
T
- tax assessment
- A tax authority's formal determination or confirmation of a taxpayer's liability.Official reference ↗
- tax audit
- A tax authority review of returns, records and transactions to check compliance.Official reference ↗
- tax clearance certificate
- A document from a tax authority indicating a person's recorded tax compliance status for a stated purpose or date.Official reference ↗
- tax credit
- An allowable amount subtracted from tax payable, subject to applicable limits.Official reference ↗
- tax deduction
- An allowable amount subtracted from income or profit before tax is calculated.Official reference ↗
- tax exemption
- A rule excluding a qualifying item of income or gain from a particular tax.Official reference ↗
- tax point
- The time when VAT becomes chargeable on a supply under the relevant rules.Official reference ↗
- tax relief
- A statutory deduction, credit, exemption or other provision that reduces a tax burden.Official reference ↗
- tax resident company
- A company treated as resident under the Cyprus corporate-tax residence rules.Official reference ↗
- tax resident individual
- An individual meeting Cyprus's statutory residence tests for the relevant tax year.Official reference ↗
- tax ruling
- A tax authority's written view on how specified rules apply to stated facts, within its scope and conditions.Official reference ↗
- tax year
- The period for which income or transactions are assessed for a particular tax; Cyprus income tax generally uses the calendar year.Official reference ↗
- taxable income
- Income remaining after applying the deductions and exemptions allowed by the relevant tax law.Official reference ↗
- taxable person
- An individual or entity within the scope of a tax under the relevant law.Official reference ↗
- TD1also: personal income tax return
- Cyprus personal income tax return. Mandatory for every Cyprus tax resident with taxable income above the nil-rate band. Includes the non-dom declaration.
- TD4also: corporate tax return
- Cyprus corporate income tax return. Filed annually by every Cyprus-resident company. Must be accompanied by audited accounts (except for small-company review exceptions).
- temporary residence
- Permission to live in Cyprus for a limited period and under the conditions of a particular permit.Official reference ↗
- temporary tax
- An advance payment based on estimated taxable income, later reconciled with the final liability.Official reference ↗
- third-country national
- A person who is not a citizen of an EU member state for the relevant immigration rules.Official reference ↗
- tie-breaker rule
- A treaty rule used to resolve competing residence claims under the laws of two states.Official reference ↗
- TINalso: Tax Identification Number
- The unique taxpayer number issued by the Cyprus Tax Department. Required for every individual or company engaging in any taxable activity in Cyprus.
- trade name
- A name used in business that may differ from the registered legal name of the owner.Official reference ↗
- trade payable
- An amount owed to a supplier for goods or services received on credit.Official reference ↗
- trade receivable
- An amount owed by a customer for goods or services supplied on credit.Official reference ↗
- transactional net margin method
- A method testing a net profit indicator against comparable independent transactions or businesses.Official reference ↗
- transfer pricing
- Pricing transactions between associated enterprises, assessed against applicable arm's-length rules.Official reference ↗
- treaty relief
- A reduction or exemption available under a tax treaty when its eligibility conditions are met.Official reference ↗
- treaty residence
- Residence for treaty purposes, determined by the treaty's definition and any applicable tie-breaker.Official reference ↗
- treaty shopping
- Structuring to access a treaty benefit that would otherwise be unavailable, potentially caught by anti-abuse rules.Official reference ↗
U
- UBOalso: Ultimate Beneficial Owner, beneficial owner
- The natural person who ultimately owns or controls a Cyprus company — defined as anyone holding more than 25% of shares or voting rights, or otherwise exercising control. Filed with the UBO Register.
- uncontrolled transaction
- A transaction between independent parties used, where comparable, as a pricing reference.Official reference ↗
- Union OSS
- An EU one-stop-shop scheme for declaring VAT on eligible cross-border consumer sales through one member state.Official reference ↗
V
- value added tax
- A consumption tax charged on taxable supplies, with registered businesses generally deducting qualifying input VAT.Official reference ↗
- VAT adjustment
- A correction to previously declared VAT, for example after a price change, bad debt or changed use.Official reference ↗
- VAT invoice
- An invoice containing the information required by VAT law for a taxable transaction.Official reference ↗
- VAT number
- An identifier used to recognise a business for VAT purposes and validate cross-border transactions.Official reference ↗
- VAT refund
- Repayment of VAT when deductible input tax or another statutory entitlement exceeds tax due.Official reference ↗
- VAT registration
- Enrolment with a tax authority as a person required or permitted to account for VAT.Official reference ↗
- VAT return
- A periodic declaration of output VAT, deductible input VAT and the resulting payment or refund.Official reference ↗
- VAT-exempt supply
- A supply on which VAT is not charged and for which related input-VAT recovery may be restricted.Official reference ↗
- VIESalso: VAT Information Exchange System
- EU-wide database that records intra-EU B2B VAT-registered transactions. Cyprus VAT-registered businesses selling B2B cross-border must file monthly VIES recapitulative statements.
- voluntary winding up
- A company-initiated liquidation process carried out under statutory procedures.Official reference ↗
W
- Wegzugsteueralso: §6 AStG, German exit tax
- Germany's exit tax under §6 AStG. Taxes substantial shareholders (≥1%) on the deemed disposal of their shares on the day before they cease German tax residency.Read the full guide →
- withholding tax
- Tax deducted by a payer from a payment and remitted to the tax authority on the recipient's behalf.Official reference ↗
Y
- Yellow Slipalso: MEU1, MEU 1, registration certificate
- The Cyprus registration certificate for EU, EEA and Swiss citizens staying more than 3 months. Proves legal residence; required to access GESY, employment and banking.Read the full guide →
Z
- zero-rated supply
- A taxable supply charged at a 0% VAT rate while preserving input-VAT recovery, subject to conditions.Official reference ↗
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