Cyprus Bar Association challenges new tax department requirement for document certification

The Cyprus Bar Association has formally requested that the Minister of Finance and the Tax Commissioner cancel a recent circular issued by the Tax Department. The circular mandates the certification of signatures on sales and purchase agreements required for the calculation of Capital Gains Tax. The Association argues that this requirement lacks any foundation in existing legislative or regulatory frameworks. According to the legal body, no law or regulation currently obligates parties to certify agreements to ensure their validity. Furthermore, the Association claims the Ministry lacks the legal authority to impose such certification for its own administrative purposes. The organization has received numerous complaints from lawyers reporting that tax authorities are rejecting non-certified documents. The Board of Directors of the Cyprus Bar Association continues to monitor the situation and has declared the circular unlawful. They have promised to keep members informed as the situation develops.