“ERGANI” Information System enters into force

We would like to inform you that the Ministry of Labour, Welfare and Social Insurance has recently announced that on 13 September 2021, the relevant Social Insurance (Contributions) (Amendment) Regulations of 2017 (Regulations 167/2017) enter into force.

The main amendments are the following:

  1. The application for registration of an employer should be submitted no later than one (1) day prior to the date that the applicant is expected to become an employer
  2. Each employer should notify the Social Insurance Services for each employee recruitment no later than one (1) day before the particular

The notification of new recruitments will be made only electronically through the Information System “ERGANI”, which is located on the website https://ergani.mlsi.gov.cy. Relevant information on the operation and terms of   use of the System are available on this website.

In addition, the Ministry of Labour, Welfare and Social Insurance has appointed Communication Officers at each District Social Insurance Office for further information and assistance.

It is noted that as from 13 September 2021, the issuance and use of the

“Certificate of commencement of employment” will be abolished.

Each employer must keep a recruitment register, in which they must record personal information for each employee (serial number, name, ID card number, Social Security number, date of recruitment and date of commencement of employment).

Personal tax form for the year 2020

Exemption of natural persons from the obligation to submit a personal income tax return for the year 2020

Τhe Council of Ministers, exercising its powers conveyed to it by the Assessment and Collection of Taxes Law, issued a decree (No.288/2021) exempting natural persons, whose total gross annual income is below €19.500, from the obligation to submit a personal income tax return for the tax year 2020. The decree was published in the official gazette of the Republic on 9th July 2021.

The said decree was issued further to amendments in the Assessment and Collection of Taxes Law, published in the official gazette of the Republic on the 20th of August 2020, according to which all individuals would have an obligation to submit a personal income tax return from the tax year 2020 onwards, subject to a decree to be issued by the Council of Ministers which may provide conditions for an exemption.

Our team remains at your disposal for more information and support.

Cypriot Parliament approves legislation to implement DAC6/MDR

On 18 March 2021, the Cypriot Parliament voted for the amendment of the Cypriot Law on Administrative Cooperation in the field of Taxation (‘Law N. 205(I)/2012’ or the ‘Law’) implementing the European Union (EU) Directive on the mandatory disclosure and exchange of information on reportable cross-border arrangements (referred to as ‘the ‘Directive’).

Once the Law is published in the Official Gazette, it will be effective as of 1st of January 2021 although the Law has retroactive effect and captures reportable cross-border arrangements made on or after 25 June 2018. In addition, guidance notes (in the form of a Ministerial Decree) will be issued in the next few weeks and will provide clarity over the interpretation of key terms and provisions of the Law.

In general, the Law is aligned to the minimum standards set by the Directive with minor deviations. A more detailed alert on the final provisions of the Law will follow next week as the final text of the Law is not yet publicly available.

Our team remains at your disposal for any information and/or clarifications required