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qualifications to be appointed auditor of a company under the
Companies Law:



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Provided that any individual who has been duly authorized by the
Minister of Finance, to act as an independent accountant for the
purposes of the Income Tax Laws, and is in fact acting as such as
at the date of commencement of this Law, shall continue to have the
right to prepare and certify accounts and computations for income
tax purposes.

Loans to 39. Subject to the provisions of sub-section (19) of section 8,
directors. whenever a company, controlled by not more than five persons,
grants a loan or any other financial facility to any of its directors or
shareholders or, in case such directors or shareholders are
individuals, to their relatives up to the second degree of kindred, the
Commissioner may deem that interest at the rate of nine per cent
(9%) per annum is payable to the company on the amount of the
loan.
PART X
ASSESSMENT AND CHARGE OF TAX
IN RESPECT OF EMOLUMENTS

Interpretation. 40. For the purposes of sections 9, 41, 42 and 44 the term
«emoluments» means all income derived by an individual from
profits or benefits as specified in paragraph (b) of sub-section (1) and
paragraph (b) of sub-section (2) of section 5 and includes any
pensions.
Assessment, 41. Notwithstanding anything in this Law contained, tax for every
charge, etc.,on year of assessment shall be assessed and charged on all emoluments
emoluments. for any such year and on the payment of the emoluments or any
amount, on account of such emoluments during the year of
assessment, tax, shall, be deducted by the person making the
payment of the emoluments, in accordance with the Regulations
made by the Council of Ministers under section 44, notwithstanding
that when the payment is made no assessment has been made in
respect of the emoluments and notwithstanding that the emoluments
constitute, in whole or in part, emoluments of a year of assessment
other than the year during which the payment is made.



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42. All the other provisions of this Law relating to income shall
Other provisions
apply to income from emoluments in so far as they are consistent
of the Law to
with section 41.
apply.


PART XI
MISCELLANEOUS PROVISIONS


43. (1) Notwithstanding anything in this Law contained, the liability
Liability to tax
to tax of the profits or income derived by, or arising or accruing to,
of members of
any person who resides or works in the British Sovereign Base
United Kingdom
Areas and the liability to tax of the profits or income derived in the
Forces, of Greek
Republic by any member of the United Kingdom Forces or civilian
and Turkish
component or Authorized Military Organization or of the Forces of
Forces in the
the Republic of Greece and the Republic of Turkey within the
Republic and
territory of the Republic, shall be subject to the relative provisions
other persons.
of the Treaty of Establishment or, of the Agreement for the
Application of the Treaty of Alliance signed at Nicosia on the 16th
August, 1960, as the case may be, and tax shall be charged, and
collected on the basis of such provisions.

(2) For the purposes of this section -

(a) «Treaty of Establishment» means the Treaty concerning the
Establishment of the Republic of Cyprus signed at Nicosia on
the 16th August, 1960, and includes the Exchange of Notes
signed on the same date;

(b) the terms used in sub-section (1) of this section shall have the
meaning assigned to them in the Treaty of Establishment or in
the Agreement for the Application of the Treaty of Alliance
signed at Nicosia on the 16th day of August, 1960, as the case
may be.
Regulations 44. (1) The Council of Ministers may make Regulations with respect
to the assessment, charge, collection and recovery of tax on
emoluments as defined in section 40 and such Regulations may
include provision -


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(a) for requiring any person making any payment of, or on
account of, any such emoluments to make a deduction, when
making the payment, of tax calculated by reference to tax
tables prepared by the Commissioner and for rendering
persons who are required to make any such deduction
accountable to the Commissioner;

(b) for the production to any inspection by the Commissioner or
any person authorized by him, of wages sheets and other
documents or records for the purpose of satisfying the
Commissioner that tax has been and is being deducted and
accounted for in accordance with the Regulations and that
clearances of the tax deducted are duly submitted ;

(c) for the collection and recovery, whether by deduction from
income paid in any later year or otherwise, of tax in respect of
emoluments to which this Law applies, which has not been
deducted or otherwise recovered during the year, and the tax
tables to which reference is made in paragraph (a) shall be
drawn up with a view to securing that, as far as possible, the
total tax payable in respect of the emoluments of an individual
for any year of assessment is deducted from the emoluments
paid during that year.

(2) The Council of Ministers may make Regulations for carrying
out the provisions of any conventions having effect under section
34.

(3) The Council of Ministers may make Regulations generally for
carrying out the provisions of this Law and for such matters as are
required or authorized by this Law to be prescribed and may also
make Regulations with respect to any matter or thing in respect of
which it is expedient to make Regulations for the purpose of
carrying this Law into execution.

(4) Persons failing to comply with or contravening the provisions
of any Regulation made under this section he shall be guilty of an
offence against this Law.


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(5) The Regulations made in pursuance of this section shall be
published in the official Gazette of the Republic.

45. Notwithstanding anything contained in this Law or in the
Administrative
Assessment and Collection of Taxes Laws, all administrative
instructions for
instructions of the Commissioner which are contained in circulars
allowances etc.
and which relate to any allowances of a general nature, relaxations
shall be
or concessions which are granted on the basis of this Law or of the
published.
4 of 1978 Assessment and Collection of Taxes Law, shall be published in the
23 of 1978 official gazette of the Republic and shall come into operation from
41 of 1979 the date of their publication.
164 of 1987
159 of 1988
10 of 1991
57 of 1991
86(I) of 1994
104(I) of 1995
80(I) of 1999
153(I) of 1999.
46. (1) Notwithstanding anything in this Law contained, in the case
Foreign
of a company, incorporated in the Republic as well as in the case of
companies
a company registered under section 347 of the Companies Law and
having income
having the management and control of its business in the Republic
from sources
the shares of which belong directly or indirectly exclusively to aliens,
outside the
and which, during the year ending on 31 December 2001, derived
Republic.
and continue to derive income from sources outside the Republic,
(a) from the carrying on of any business the object of which lies
outside the Republic; or
(b) from the investment of capital in bonds, shares, debentures or
loans of any nature; or
(c) from any royalties; or
(d) from immovable property,
may, as long as they continue to satisfy all the above conditions,
elect to be taxed in the years of assessment 2003, 2004 and 2005 at
the tax rate of 4,25 per cent (4.25%) on their chargeable income
after deducting any tax which is payable outside the Republic:


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Provided that where such company is a bank or finance company
which carries on a business which entails deriving income from
sources within the Republic after the issue of a permit in accordance
with the provisions of any law in force for the time being and under
such conditions as may be prescribed by Regulations made under this
Law, then the income derived in the Republic shall be liable to tax
according to the rates set out in paragraph 2 of the Second Schedule.
(2) For the purposes of paragraph (b) of sub-section (1) the income
from investment of capital is deemed to emanate from sources
outside the Republic if, notwithstanding the place of investment and
the parties to the relevant agreement, such capital is used for
activities outside the Republic.

(3) For the purposes of this section «chargeable income» means the
chargeable income as computed in accordance with the provisions of
this Law before deducting the allowances or exemptions prescribed
in sections 8(19), 8(20), 8(22), 13(4), (5), (6), (7), (8), 26, 27, 28, 29,
30, 35 and 36.

(4) Notwithstanding the provisions of section 13, loss occurred
during any year of assessment up to the year 2000 shall not be
carried forward and shall not be set-off against the income of any
year of assessment after the lapse of five years from the end of the
year of assessment in which the loss occurred.

(5) The election provided in sub-section (1), once made, is
irrevocable for the period of three years 2003, 2004 and 2005.

47. The Income Tax Laws of 1961-2002 are hereby repealed without
Repeal and
savings prejudice to anything done or omitted to be done thereunder:
58 of 1961
4 of 1963
21 of 1966
60 of 1969
47 of 1973
37 of 1975
12 of 1976
15 of 1977
8 of 1979
40 of 1979



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24 of 1981
41 of 1983
33 of 1984
76 of 1984
14 of 1985
73 of 1985
180 of 1986
163 of 1987
301 of 1987
26 of 1988
109 of 1988
133 of 1988
173 of 1988
233 of 1988
14 of 1989
39 of 1989
101 of 1989
137 of 1989
77 of 1990
225 of 1990
226 of 1990
245 of 1990
58 of 1991
174 of 1991
240 of 1991
45(π) of 1992
115(π) of 1992
38(π) of 1993
103(π) of 1994
103(π) of 1995
51(π) of 1996
53(π) of 1996
70(π) of 1997
81(π) of 1997
95(π) of 1997
61(π) of 1998
49(π) of 1999
50(π) of 1999
56(π) of 1999
145(π) of 1999
155(π) of 1999
162(π) of 1999
67(π) of 2000
76(π) of 2000
3(π) of 2001
116(π) of 2002.


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Provided that all Regulations, all orders and all notifications and
appointments, as well as all notices issued under the provisions of
the Income Tax Laws, 1961-2002, shall be deemed to have been
issued pursuant to this Law and shall continue in force, mutatis
mutandis, until revoked, cancelled or substituted:
Provided further that, the assessments which have not been made
and the taxes which have not been assessed or collected with respect
to the year of assessment 2002 and all previous years, shall be made,
assessed and collected in accordance with the provisions of the
Income Tax Laws of 1961-2002.


Date of 48. This Law shall enter into force as from 1st January, 2003.
commencement of
this Law.




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FIRST SCHEDULE

(Section 2)

List of companies referred to in the definition of the term
«company» in section 2.

1. Companies under Belgian law known as «societe
anonyme/'naamloze vcnnootschap», «soci©t© en commandite
par actions commanditaire vennootschap op aandelen»,
«socictc priv©e à responsabilite limitee /besloten vennootschap
met beperkte aansprakclijkheid» and those public law bodies
that operate under private law;

2. companies under Danish law known as "aktieselskab",
"anpartsselskab";

3. companies under German law known as «Aktiengesellschaft»,
«Kommanditgescllsehaft auf Aktien», «Gesellschaft mil
beschrankter Haftung», «bergrechtlichc Gesellschaft»:

4. companies under Greek law known as «anonyme etairia»;

5. companies under Spanish law known as «sociedad anonima»,
«sociedad comanditaria per acciones», «sociedad de
responsabilidad limitada» and those public law bodies that
operate under private law;

6. companies under French law known as «soci©t© anonyme»,
«soci©t© en commandite par actions», «societe à responsabilit©
limit©e» and industrial and commercial public establishments
and undertakings;

7. the companies in Irish law known as public companies limited
by shares or by guarantee, private companies limited by shares
or by guarantee, bodies registered under the Industrial and
Provident Societies Acts or building societies registered under
the Building Societies Acts;

8. companies under Italian law known as: «societa per azioni»,
«societa in accomandita per azioni», «societa a responsabilita
limitata» and public and private entities carrying on industrial
and commercial activities;



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9. companies under Luxembourg law known as «soci©t©
anonyme», "«soci©t© en commandite par actions», «soci©t© a
responsabilit© limit©e»;

10. companies under Netherlands law known as «naamloze
vennootschap», «besloten ven-nootschap met beperkte
aansprakclijkheid»;

11. commercial companies or civil law companies having a
commercial form, co-operatives and public undertakings
incorporated in accordance with Portuguese law;

12. companies incorporated under the law of the United Kingdom;

13. companies under Austrian law known as «Aktiengesellschaft»,
«Gesellschaft mit beschrankter Haftung»;

14. companies under Finnish law known as

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