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The European Council has obliged the EU states to amend its legislation in relation to tax exemptions before 31.12.2015.
DATE: February 3, 2015 | AUTHOR: atlawyers
The European Council has obliged the EU states to amend its legislation in relation to tax exemptions before 31.12.2015. Companies not performing real economic activity will no longer be able to apply Parent-Subsidiary Directive dated 1990, according to which payment of dividends, for example, from a subsidiary located in Luxembourg, Latvia or the Netherlands to the parent Cyprus company is not subject to taxation. Tax exemptions will remain, if the Cyprus company has real presence in Cyprus.