New Group Relief Rules in Cyprus Law
In May 2012, the Cyprus House of Representatives introduced new facilities for the Group relief in Cyprus.
Group relief is the deduction from the profits of one company of the losses of another company from the same tax group.
A tax group exists when a company is incorporated by its mother company with minimum of 75% voting shares, directly or indirectly, and beneficially entitled, directly or indirectly, to at least 75% of the income and 75% of the assets in case of share transfer or any type of closing of the company.
Until recently, the Group relief could be applied only if all the tax resident companies were from the same tax group for the entire financial year for which was required the tax relief.
Now, for any moment the company becomes member of a tax group, it may apply the for the tax relief.