8. Blog list – bottom overlap

An efficient audit does not start when the audit team arrives. It starts months earlier, with preparation, planning and clarity over what will be required, and when. Many audit overruns are not driven by technical complexity or regulatory change. They arise because audits begin before the underlying building blocks are in place. Here, we set…

How world events are flowing into financial statements Geopolitical developments, trade policy shifts and structural changes in energy demand are no longer background noise. Even where an entity has no direct exposure to a specific country, contract or supply route, the secondary and tertiary effects of global events are now filtering rapidly into financial results…

In today’s rapidly evolving business environment, companies face an increasing range of challenges—from financial management to regulatory compliance, competitive pressures, and the need for strategic growth. In such a complex landscape, accounting services have become a vital part of every business operation. No longer are accounting professionals simply tasked with managing the books; their role…

Transfer pricing rules are built around a simple principle: transactions between related parties should be priced as if they were carried out between independent companies. In practice, however, applying this principle is not always straightforward — particularly in smaller economies such as Cyprus. Since the introduction of formal transfer pricing documentation requirements in 2022, Cypriot…

We are pleased to bring you Issue 35 of Tax Refresher, our bi-monthly newsletter designed specifically for large corporate and international businesses, which aims to keep you updated on the latest developments and challenges in the global tax landscape. In this issue of Tax Refresher, you will find the below insights: Feature: Public Country-by-Country Reporting…

Succession planning in Cyprus was always a hot topic, especially in recent years. It was always a critical concern in Cyprus mainly due to the island’s strong culture of family-owned businesses and closely held corporate structures. As we transitioned into the next phase, the implementation process became both increasingly engaging and more challenging. The traditional…

Public Country-by-Country Reporting (CbCR) is an EU-led initiative designed to increase tax transparency by requiring multinational enterprise (MNE) groups to publicly disclose key financial and tax-related information on a country-by-country basis. Who Does It Apply To? Under EU Directive 2021/2101, the public CbCR rules generally apply to MNE groups with consolidated global revenues exceeding €750 million…

The obligation to file a “Public Report on Income Tax Information” by Greek subsidiaries and branches of ultimate parent companies established in third countries was introduced into Greek legislation by Law 5066/2023 (amending Law 4548/2018), transposing Directive 2013/34/EU (as amended by Directive 2021/2101/EU). Specifically, with the introduction of Articles 157A – 157H and 180A into…

Emeritus Professor Joe Nellis is economic adviser at MHA, the accountancy and advisory firm. The European Central Bank has held the deposit rate at 2%, a decision that reflects the shifting, and increasingly uncomfortable, inflation picture. Further interest rates were already unlikely before escalation of conflict in the Middle East, with the ECB reaching the…

Revenue recognition in non-profit organizations is often underestimated in terms of complexity. In practice, it is one of the areas most frequently challenged during external audits, largely due to the variety of funding sources and the judgment required in applying the relevant accounting standards.  Unlike commercial entities, non-profits receive income from a broad range of sources, donations, grants, memberships, sponsorships, and service-based arrangements. Each…

There is substantial empirical evidence that the global system of trade is fragmenting. The bigger question is how far the fragmentation will spread, and whether it becomes adaptive or harmful. No business can afford to ignore the potential consequences. Since the 1990s, regional trade agreements proliferated rapidly. Almost all members of the global trading system…

Running a private hospital is complex by nature, and that complexity inevitably finds its way into the financial statements. For this reason, external audits rarely focus only on the numbers. Just as important are the underlying processes, management judgments, and the quality of the information supporting them. Revenue recognition is often one of the most…

Tax Alert- April (002)

What we care for, we protect. Earth Day is far more than a symbolic occasion. It is a practical opportunity to reassess their environmental impact and to implement meaningful, measurable changes – for the planet and for themselves. “While long-term sustainability strategies are essential, immediate actions and practical steps can significantly reduce a company’s ecological…

The EU Pay Transparency Directive: What is it and who does it apply to? The Directive mandates that all EU member states implement laws to promote pay transparency and close the gender pay gap. Each member state is responsible for enacting its own legislation to meet the directives goals by June 2026. The directive also…

This insight was co written by Tomasz Piasecki and Maisie Williams. Recent developments include the UK Sustainability Reporting Standards (UK SRS) and the PRA’s SS5/25 supervisory expectations on climate risk management for banks and insurers. In the EU, the Omnibus I simplification package introduces amendments to key sustainability legislation, including the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD).…

The fiduciary services industry in Cyprus has entered a new regulatory and operating environment following the enactment of the long‑anticipated tax reform.  The reform, which came into effect on 1 January 2026, represents the most comprehensive overhaul of the Cyprus tax system in more than two decades.  For fiduciary service providers, the reform is not…

Several countries have either banned, or are moving towards banning, access to certain generally available apps amongst under 16s. This has largely been driven by concerns about mental health, safety and the influence of algorithms on young minds. Whilst the reasons behind these initiatives are certainly laudable, they also raise a question as to whether…

The construction sector in Cyprus is navigating a rapidly evolving tax and VAT landscape in 2026. The Cyprus tax reform introduced certain key legislative changes that came into effect on 1 January 2026. Furthermore, even though VAT was not part of the tax reform, significant VAT changes are also being implemented. As a result, property…

Digital transformation has become a defining force in the software development industry. While software companies have always operated in the digital space, today’s transformation goes far beyond simply adopting new tools. It represents a fundamental shift in how software is designed, developed, delivered, and continuously improved. Organizations are rethinking processes, culture, architecture, and customer engagement…

The tax authorities have announced that the filing deadline for both the qualifying domestic minimum top-up tax and the top-up tax under the income inclusion rule (IIR) has been extended. Qualifying Domestic Minimum Top-Up Tax The filing deadline for reporting years that start on 31 December 2023 or later, and reporting years ending on 1…

Baker Tilly International has announced record global revenues of US$6.8bn for the year ended 31 December 2025, up 21.3% on the previous year. This market-leading growth continues a journey of consistent expansion for the global accounting and advisory network, which has grown by nearly 70% in the last five years despite significant volatility in international…

While the immediate threat that a disruption in the Strait of Hormuz poses to the global oil trade is readily apparent, a deeper analysis reveals that the ramifications extend far beyond energy markets and permeate the broader economic landscape. Modern industrial output is fundamentally dependent on consistent and affordable energy inputs. Manufacturing facilities and processing…

Rakesh Shaunak, CEO at MHA comments on the audit industry’s next big test – AI-enhanced deception in an article originally published in City AM. The audit industry has been under the microscope over the past few years following a number of high-profile corporate collapses, prompting stricter measures to restore public trust. And with the rise of…

Insight written by Ben Hobby, Principal, Brian Nichols, Principal, Bernard Regan, Principal and Christopher J. Tait, Principal From Baker Tilly US Small and mid-sized businesses (SMBs) are the backbone of every economy, yet they remain dangerously exposed to cyber risk. Many SMBs lack the budget, infrastructure and in-house expertise to implement strong defenses, leaving them…

The landscape of cyber security has fundamentally shifted, moving from a niche IT concern to a systemic risk that demands active, long-term leadership from the board. For financial services firms, where operational stability and client trust are paramount, the necessity of robust cyber resilience is not merely a commercial concern but a core regulatory expectation…

By Anestis Dimopoulos, Director, Head of Digital & Risk Advisory Services, Baker Tilly South East Europe At a time where cyber threats are evolving at a rapid pace, Greece is entering a phase of strategic maturity. The new National Cybersecurity Strategy 2026–2030, published in December 2025 under the supervision of the National Cybersecurity Authority (NCSA),…

Since mid-February, the outbreak of foot-and-mouth disease has posed a significant economic challenge to Cyprus’s livestock and agricultural sector, as well as to the broader economy. Following the identification of the first cases on the island, the Government activated an Emergency Response Plan and proceeded with the implementation of targeted containment measures. Key measures included quarantines in affected areas, restrictions on the movement…

Emeritus Professor Joe Nellis is economic adviser at MHA, the accountancy and advisory firm. The European Central Bank’s decision to hold the deposit rate at 2% at its March meeting is no surprise – it wouldn’t have been one a month ago either. However, the rules of the game have changed. While inflation across the…

On 12 December 2025, EU Member States reached agreement on a major reform of the EU’s customs treatment of e-commerce parcels. From 1 July 2026, all goods entering the EU with a value of €150 or less will be subject to a flat €3 customs duty per item. This represents one of the most significant…

Baker Tilly South East Europe is sharing the 2025 Energy, Renewables, and Industrials (ENRI) in South-Eastern Europe. This report provides a comprehensive analysis of the Energy, Renewables, and Industrials (ENRI) sector across five key South-Eastern European markets: Cyprus, Greece, Romania, Bulgaria and Moldova. It synthesizes market data, policy developments, investment trends, and infrastructure projects for…

Global technology, media and telecommunications (TMT) dealmaking is entering a new phase – one defined less by volume and more by conviction. Buyers are no longer focused on how much they acquire, but on what they are prepared to bet big on. The latest review of global TMT mergers and acquisitions (M&A) by Baker Tilly…

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Emeritus Professor Joe Nellis is economic adviser at MHA, the accountancy and advisory firm. Inflation in the Euro Area rose to 1.9% in February, up from 1.7% in January, marking a modest but notable pick up in price growth. While inflation remains just below the European Central Bank’s 2% target, the disinflation phase is evidently…

The Supreme Court of the United States (SCOTUS) announced on February 20, 2026, that President Trump does not have authority under the International Emergency Economic Powers Act (IEEPA) to impose broad tariffs. This announcement marks a significant legal and political moment in U.S. trade policy and creates a surge of opportunities for US importers financially…

ATA Carnets are entering a new digital era. With eCarnets being rolled out globally from 2026, businesses need to understand how the move from paper to app-based carnets will change international movements, and how to prepare.A major transformation is underway in the world of ATA Carnets. After more than 60 years of paper-based processes, the…

Date: Thursday 26th February Time: 11:00am – 12:00pm Due to the recent ruling from the Supreme Court, we would like to invite you to attend our joint webinar, Supreme Court Ruling on US Tariffs – What companies need to know, where our experts will break down the ruling, its implications, and what steps businesses should…

    Baker Tilly South East Europe held an official event at the Hotel Grande Bretagne in Athens to celebrate its merger with the UK-based professional services group MHA and the firm’s 30th anniversary. The event was attended by representatives from the Greek Government, the diplomatic community, business organisations, and professional partners. Speakers included CEO…

According to Climate Action Tracker, under current policies, global warming is projected to fall woefully short of the Paris Agreement threshold of 1.5⁰C above pre-industrial levels, which are necessary to mitigate the long-term impacts of global warming and associated man-made climate change. Shockingly the figure Climate Action Tracker cites is 2.7⁰C above pre-industrial levels. If…

Emeritus Professor Joe Nellis is economic adviser at MHA, the accountancy and advisory firm. Eurozone inflation has reached joint-lowest point since April 2021. Disinflationary trend caused by lack of demand in economy. Monetary policy to remain stable, reducing uncertainty for businesses. Eurozone inflation dropped to 1.7% in January, below the European Central Bank’s medium-term target…

Baker Tilly South East Europe Celebrates Merger with MHA and 30 Years of Excellence Baker Tilly South East Europe held an official event in Athens to commemorate both its merger with the UK-based professional services group MHA and the 30th anniversary of the firm’s establishment. The event was held under the support of the British…

Major Withholding Tax Reductions Effective from 2026   January 2026 Romania and the United Kingdom have entered into force a new Convention for the Elimination of Double Taxation, replacing the treaty in force since 1975. The new treaty, signed on 13 November 2024 and effective from 23 December 2025, aligns with OECD and BEPS standards…

When the European Green Deal was launched in December 2019, it set the tone for the EU to be a world leader in addressing climate change issues. The comprehensive plan aimed at making the European Union climate-neutral by 2050, with at least 50% greenhouse gas emissions cut by 2030. Roll forward to 2025 and the…

On 5 January 2026, the OECD/G20 Inclusive Framework (147 jurisdictions) agreed a way forward on Pillar Two and published the Side-by-Side (SbS) Package. The package introduces targeted simplifications and new safe harbours, while reaffirming QDMTTs as the primary mechanism for protecting domestic tax bases, changes that may materially affect Pillar Two compliance and cash tax…

Inflation across the eurozone eased to 2% in December, edging down from November’s 2.1% pace and landing on the European Central Bank’s long-term target. This reflects a broad cooling in goods prices and continued restraint in energy costs, while services inflation remains the main source of underlying momentum. The key takeaway is that price pressures…

The Cyprus Tax Reform is here — and it’s reshaping the way businesses plan, invest, and grow. Are you ready to turn change into opportunity? Join our exclusive client briefing to discover what’s new, what’s next, and how to stay ahead in 2026 and beyond. This comprehensive session will cover all the key changes introduced…

For financial reporting periods beginning on or after 1 January 2027, entities must apply the requirements of IFRS 18 “Presentation and Disclosure in Financial Statements”.  The International Accounting Standards Board has issued the new standard, officially replacing IAS 1 “Presentation of Financial Statements”. Financial Statements will have a different presentation on their financial performance statements…

MHA plc is pleased to announce that the firm has entered into an agreement to acquire Moore Stephens LLC, an audit practice, and Moore Stephens Consulting LLC, a tax and consulting services firm. The two firms are headquartered in Dubai and are collectively known as MS UAE. The acquisition is consistent with MHA’s strategy of…

The European Central Bank’s decision to keep interest rates unchanged at 2% at its final meeting of the year signals a continued commitment to fighting inflation, even as growth across the euro area remains uneven. As 2026 approaches, it appears that rates have reached near the bottom of the cycle — the ECB are unlikely…

Estonia’s Ministry of Finance has said it did not agree (under an OECD Inclusive Framework “silent procedure”) to the proposed Pillar Two side-by-side system package, and that it wants an outcome “acceptable to all parties.” In its announcement, Estonia argues that the OECD minimum tax rules are highly complex, would create a disproportionate administrative burden…

Law no. 239/2025, published in the Official Journal no. 1160/15.12.2025, part of the “Package 2” of fiscal‑budgetary reforms, introduces major changes in taxation, public administration and insolvency procedures, aiming to reduce tax evasion and enhance resource efficiency. The majority of provisions enter into force starting 1 January 2026. Key provisions applicable from 1 January 2026…

Despite global uncertainty and geopolitical shifts, South East Europe’s merger and acquisition (M&A) landscape is shaping up to remain solid, with steady investor appetite and domestic dealmaking to stay active. But what are the key trends shaping the market and what should businesses be preparing for next? Transaction Services Partner, Stela Ivanchova provides insight.  …

Baker Tilly South East Europe is pleased to announce the appointment of Marios Tsiakkis as a Non-Executive Director to the regional Board. Marios brings more than 35 years of leadership experience, most recently serving as Secretary General of the Cyprus Chamber of Commerce and Industry (Keve), where he played a central role in shaping economic…

Professor Joe Nellis is economic adviser at MHA, the accountancy and advisory firm. Eurozone inflation edged up to 2.2% in November, a slight rise from the 2.1% recorded in October. The headline number continues to hover close to the European Central Bank’s 2% target, but the underlying picture remains uneven. For the wider eurozone economy,…

On 4th of June 2025, the European Commission announced that Bulgaria is ready to adopt the euro. The announcement follows the release of the 2025 Convergence Report, which stated that Bulgaria met all nominal convergence criteria of the EU – price stability, public finances criterion, exchange rate and convergence of long-term interest rates. Furthermore, the…

Since January 2024, the European Union’s (EU) Emissions Trading System (ETS) has included maritime transport. What does that mean? According to the European Commission, maritime transport is one of the most energy-efficient modes of transport. However, because of its importance to the EU economy, it is a large and growing source of greenhouse gas emissions.…

What can the EU energy sector do to meet it obligations and aspirations, what role can they play, and how ESG should be at the forefront of their business modelling. There is little doubt that meeting the EU energy sector’s climate change and sustainability obligations and ambitions rest, in no small measure, on placing climate…

E-invoicing – Why it’s a critical consideration for multi-national businesses E-invoicing is fast approaching implementation in the EU as part of the VIDA (VAT in the Digital Age) programme. VIDA is mandatory and requires all B2B transactions between EU-established businesses to adopt e-invoicing across the EU by 2030, with digital real-time reporting to tax authorities…

To meet GHG reduction levels, the number of flights globally will need to be significantly reduced. There are a number of implications. Firstly, the more people who migrate to other countries, the more people will need to travel back to visit family and friends, and the more consequent travel will be required. This will be…

Automotive On Thursday 8th May, 2025 the European Parliament adopted a targeted change to CO2 emissions performance standards for new cars and vans. The amendment was passed with 458 votes for, 101 against and 14 abstentions.   Why was a change necessary? Following consultation and discussion (launched by European Commission President Ursula von der Leyen…

Baker Tilly Cyprus announces the firm’s appointment as the statutory auditor of AstroBank Public Company Limited. This appointment underscores Baker Tilly Cyprus’s commitment to delivering high-quality audit and assurance services, supporting transparency, governance, and regulatory compliance in the banking sector. Commenting on the appointment, Marios Klitou, Regional CEO at Baker Tilly SEE, stated: “We are…

Navigating the fast-changing world of e-invoicing regulations just got easier! We’re excited to announce the launch of our interactive E-Invoicing Navigator, designed to provide you with up-to-date e-invoicing compliance information across key jurisdictions. Ongoing updates User-friendly interface Cross-jurisdictional resource Stay ahead of regulatory changes and ensure your business is always compliant, without the hassle! Whether…

Baker Tilly South East Europe has announced the completion of its merger with MHA, a firm listed on the London Stock Exchange’s AIM market. The agreement, valued at €24 million, was finalized on August 11, 2025, marking a new chapter of growth and international expansion for the company. A Strategic Move with Long-Term Vision The…

MHA has today completed the acquisition of Baker Tilly South-East Europe (BTSEE) in a deal valued at €24 million. MHA which has 23 offices in the UK, Ireland and the Cayman Islands had previously announced on 7 May to the London Stock Exchange (LSE) the intention to make the acquisition. Baker Tilly South-East Europe is…

We are proud to announce that Savvas M. Klitou, Regional Managing Partner & Head of Tax Services at Baker Tilly South East Europe, has been elected as a member of the new Board of Directors of ICPAC (Institute of Certified Public Accountants of Cyprus). The newly appointed board was constituted prior to the official proceedings…

While the EU’s Omnibus proposal aims to reduce the number of companies within the scope of the Corporate Sustainability Reporting Directive (CSRD) by an estimated 80%, it also aims to streamline regulatory demands and give wave 2 and 3 companies more time – helping businesses focus more effectively on sustainability. The ‘stop-the-clock’ directive has officially…

Baker Tilly South East Europe had the honour of hosting this year’s Europe Conference, which took place in Athens from May 7 to 9. More than 150 senior and emerging leaders from the firm’s global network participated in this dynamic three-day event, themed “Leading Change, Creating Value”, highlighting change as a driving force for innovation,…

Regional group to join forces with Baker Tilly International UK member firm Baker Tilly South East Europe (BTSEE), a leading professional services firm offering a comprehensive range of services to clients in Cyprus, Greece and South East Europe, announces that it has entered into a heads-of-terms agreement to merge with MHA plc, a leading professional…

The Economic and Financial Affairs Council (ECOFIN) adopted the proposal ‘VAT in the Digital Age’ last year. These new rules aim to make VAT in the EU simpler and more resistant to fraud. Recently, the Council officially approved this new directive. The EU member states must now implement these rules. Our Baker Tilly International network…

The Omnibus package was proposed by the European Commission with the aim of simplifying ESG rules and making EU businesses more competitive. The package, if adopted, will reduce administrative burdens for all companies by 25% and for SMEs by 35%.   What will the legislation do? Omnibus impacts the Corporate Sustainability Reporting Directive (CSRD), the…

On the 26th February, the EU Commission announced its ‘Omnibus’ package, confirming the simplifications to the Carbon Border Adjustment Mechanism (CBAM). The proposal document and supporting ‘Commission Staff Working Document’ (SWD) were released the following day, outlining amendments to CBAM Regulation 2023/956. These changes are in response to discussions on the existing scope of the…

CHANGES TO THE LEGISLATION On 6 December 2024, the Prevention and Combating of Money Laundering (Amendment) (No. 2) Law of 2024 with number L.141(I)/2024 was published, introducing the below amendments: 1. The penalties for the omission or neglection of the filing / annual confirmation of the UBO Register will only be applicable to the legal…

Many argue that the European Union (EU) is shifting its environmental policy focus from biodiversity protection to prioritizing climate change mitigation. Considering the EU’s use of legal instruments, including the Renewable Energy Directive (RED III) and the Nature Restoration Law, efforts are underway to streamline the renewable energy transition, sometimes at the expense of environmental…