In the past thirty years, food supply chains were designed around efficiency and cost benefit. In effect, Production moved to the lowest-cost locations and processing became concentrated. In the last 30 years, distribution networks stretched across continents with the prevailing assumption that lower cost always meant greater competitiveness. Does that still hold relevant today? In…
Boards tend to think of governance in terms of committees, policies and reporting lines. In practice, much of it is decided far lower down, in how a transaction is documented, how a balance is reconciled and how a tax position is supported. The accounting and tax function is where governance either holds up or quietly…
Emeritus Professor Joe Nellis is Head of Economic Research at MHA, the accountancy and advisory firm. Eurozone inflation has jumped to its highest rate in three years, reaching 3.8% in September and taking it further above the European Central Bank’s official 2% target. Inflation has doubled in just 8 months, from 1.7% in January to…
In 2024, Forbes reported that video games are developing future leaders. The article cited countless hours spent in virtual worlds as ‘shaping a new generation of leaders who navigate complex business challenges with the same strategic precision they once used to conquer digital realms’ – a generational change revolutionising how businesses approach decision-making. With these…
Back in the spring, Cyprus’ tourism industry faced a difficult and uncertain outlook. The sharp decline in arrivals during March and April raised concerns across the sector and forced many businesses to revisit their forecasts and contingency plans. Fast forward a few months and the picture is much more encouraging. According to the latest CYSTAT…
With the provisions introduced by Law 5313/2026, Greece aims to become an attractive destination for the establishment and management of Alternative Investment Funds (AIFs). In detail, the favorable tax regime already applicable to income derived from the participation of individuals, members of the Manager’s team, in the carried interest of Venture Capital Mutual Funds (AKES),…
This article was co written by Mark Lumsdon Taylor and Sabrina Freitas. We should not be surprised. Every stunted potato in a field, and every brown, scorched pasture across the wider UK countryside is not an ‘Eclipse’ moment or event. It is the simple and inevitable arithmetic of a planet that has just lived through…
Organisations that keep the economy and daily life moving, energy, transport, health, water, food, digital infrastructure, public administration, now operate in an environment where disruption is no longer the exception. Extreme weather, cyber-attacks, geopolitical tension, supply-chain failure and technology outages can hit physical assets, people and data at the same time. With the Civil Defence…
Arguably, the first recognisable consulting firm came into existence in 1886, when Arthur Dehon Little and Roger B. Griffin entered into a partnership in the US that later became Arthur D. Little, evolving from a chemical testing and technical research company to a general management consultancy. In the UK the first recognisable consulting firm was…
Emeritus Professor Joe Nellis is Head of Economic Research at MHA, the accountancy and advisory firm. With inflation rising to 3.3% in August and Brent crude oil once again above $100 a barrel, the European Central Bank has decided that the European — and global, economy is no longer facing merely a short-term inflation shock.…
The AI talent challenge nobody is talking about. Artificial intelligence is rapidly becoming the defining business story of the decade. Organisations are dedicating significant resources to automation, data systems, and AI tools to increase productivity and efficiency, accelerate decision-making, and cut costs-but this focus risks overlooking deeper organisational implications. The commercial logic for the uptake…
Emeritus Professor Joe Nellis is Head of Economic Research at MHA, the accountancy and advisory firm. Inflation in the Eurozone has edged higher again, rising from 2.9% in July to 3.3% in August. This is a cause for concern – reinforcing worries that price pressures are proving more stubborn than policymakers would like and raising…
As geopolitical tensions reshape economies and governments compete for investment, one message came through clearly at MHA’s International Tax Summit: international tax reform is not going away, but its direction is changing. Hosted in London, the event brought together senior tax leaders, multinational businesses and specialists from across the Baker Tilly International network to discuss…
Welcome to Issue 37 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 edition of Tax Refresher, you’ll find the following insights: UAE Federal Tax Authority sets administrative requirements for Domestic…
When many business leaders think about VAT, they think about compliance. For Glyn Edwards, it is about people, businesses and the decisions that shape them every day. From working with funeral directors and charities to supporting schools, motor retailers and healthcare organisations, no two weeks are the same. One day might involve advising on the…
Refocusing the consultancy equation in a changing world In a rapidly changing business world, consultancy firms are increasingly exposed: they exist at the intersection of sensitive client data, complex regulation, and rapidly evolving technologies. This means that robust policies around AI, governance, and data handling are no longer just best practice but essential to their…
A business perspective on Europe’s growing water dependency For years, executives have worried about energy prices. Today, they may need to start worrying about something even more fundamental: water. The current drought affecting Europe’s major rivers is often described as an environmental issue. But the business implications tell a different story. Low water levels…
Tax compliance has always been the cornerstone of the tax function of businesses. The timely filing of tax returns and payment of the underlying liabilities, the proper interpretation and application of tax legislation, and the effective response to tax audits often constitute the key indicators for assessing the effectiveness of a tax function. However, in a modern…
A Gateway to International Shipping Cyprus has established itself as one of the world’s leading maritime centres, offering a strategically located gateway between Europe, Asia and the Middle East. As an EU Member State with one of the largest ship registries in Europe and one of the largest third-party ship management centre in the European…
As the governor of the Bank of England, Andrew Bailey, claims AI is likely to displace people from jobs in a similar way seen during the Industrial Revolution, we ask the question ‘will AI play a major role in solving the world’s climate and nature crises, and if so, how?’ The answer to the first…
The Republic of Moldova is going through one of the most transformative periods in its recent economic history. With the opening, in June 2026, of the first cluster of negotiations (“Fundamentals”) in the process of accession to the European Union, and with the declared objective of opening all negotiating clusters by the end of the…
“We’ve sold almost every apartment, so why haven’t our profits increased?” This is one of the most common questions property developers ask when reviewing their financial statements. Imagine a developer who has pre-sold 80% of a new residential project. Buyers have paid substantial deposits, banks are satisfied with the pre-sales, and construction is progressing according…
According to a report published by the Cyprus Securities and Exchange Commission (CySEC) earlier this month, total assets under management in the Cyprus fund industry stood at €11.2 billion in Q4 2025, down 1.97% quarter-on-quarter. Despite this modest contraction, the composition of the market points to the continued dominance of alternative investment structures and a…
Inventory is often one of the most significant assets on a company’s balance sheet, therefore is one of the most critical areas to audit. Inventory costing determines how the cost of goods sold (COGS) and ending inventory is calculated. The choice of inventory costing method—whether First-In, First-Out (FIFO), Last-In, First-Out (LIFO), or Weighted Average Cost—can…
Emeritus Professor Joe Nellis is economic adviser at MHA, the accountancy and advisory firm. The ECB’s decision to leave interest rates unchanged was expected, following inflation falling in June for the first time this year. After raising interest rates last month, the ECB has shown patience while they assess whether higher borrowing costs are effectively…
From record-keeper to architect of value: the skills that will matter most in the era of agentic AI For decades, a company’s finance function has been synonymous with rigor, control, and a backward-looking gaze: month-end closings, reconciliations, reports that confirm what has already happened. The chief financial officer was, in essence, the guardian of the…
For many non-profit organizations (NPOs), preparing consolidated financial statements is not always straightforward. Unlike the corporate sector, where ownership is often the determining factor, consolidation under IFRS 10 Consolidated Financial Statements is based on control. This distinction frequently creates challenges, particularly for organizations operating through foundations, charitable trusts, subsidiaries, or affiliated entities. In practice, one of the most common misconceptions is that an entity…
The retail, consumer, and hospitality sectors continue to operate in an environment shaped by rising costs, changing consumer behaviour, and increasing digitalisation. While these pressures are well understood, what is becoming increasingly evident through internal audits is that many of the underlying risks are operational rather than purely financial. Organizations that address these risks proactively…
The legal profession has historically been regarded as one of the most traditional sectors in the business world. Many law firms have traditionally relied on structures and working practices that changed only gradually, supported by predictable billing models and labour-intensive processes. That is changing. The relentless march of technology is now changing the legal industry…
For many years professional services firms in sectors such as law, consultancy, accountancy, marketing and software development have relied for their profitability on charging clients for the number of hours worked. The growing adoption of artificial intelligence and other disruptive technologies is now challenging this model, traditionally based on rewarding time and workload. As AI…
In real estate development, success is often associated with location, design and timing. These factors matter. But they are no longer enough. Having worked with developers, contractors, investors and lenders across the construction and real estate sector for many years, it’s evident that the projects which perform best are not always the most ambitious or…
We are pleased to bring you Issue 36 of Tax Refresher, our bi-monthly newsletter designed specifically for large corporate and international businesses, helping you stay informed on the latest tax, VAT, and employment tax developments impacting organisations operating across multiple jurisdictions. In this Pillar Two special edition of Tax Refresher, you will find the below…
Introduction For decades, the accounting profession has been built upon principles of accuracy, compliance, financial stewardship, and trust. Accountants have traditionally served as custodians of financial information, responsible for recording transactions, preparing financial statements, ensuring regulatory compliance, and safeguarding organisational integrity. While these responsibilities remain fundamental, the profession is undergoing one of the most significant…
Baker Tilly South East Europe member firm of Baker Tilly International, is pleased to announce that our network has been named Network of the Year at the International Accounting Forum & Awards. This is the second time our network has won the award in the past four years. Baker Tilly International was recognised for delivering…
Emeritus Professor Joe Nellis is economic adviser at MHA, the accountancy and advisory firm. Eurozone inflation fell to 2.8% in June, reflecting a dichotomy at the heart of the European economy. On the one hand, the conflict in the Middle East has led to energy supply disruptions and periods of higher crude oil prices, increasing…
Australia has opened lodgement channels for Pillar Two returns, allowing multinational enterprise (MNE) groups to submit the GloBE information return (GIR) and the combined global and domestic minimum tax return (CGDMTR) through the Australian Taxation Office (ATO) online services. First lodgements are due by 30 June 2026, with the ATO providing an administrative 30-day deferral…
From Disclosure to Scrutiny: A Turning Point for the SEE Energy Sector The first cycle of Corporate Sustainability Reporting Directive (CSRD) implementation has exposed a critical reality across South-East Europe (SEE): while alignment with EU sustainability objectives is widely acknowledged, operational readiness remains uneven. For energy companies in Romania, Greece, Bulgaria, Cyprus and Moldova, the…
Insolvency is still widely read as a synonym for failure. Increasingly, it is the opposite: a structured route to renewal, and one of the more effective tools available for rescuing businesses that have run into difficulty. Insolvency practitioners (“IPs”) sit at the centre of that work. Acting in various capacities — as liquidators winding a…
For many non-profit organizations, foundations, and professional associations, revenue recognition is far from straightforward. While IFRS 15 introduced a comprehensive framework for recognizing revenue from contracts with customers, applying its principles to donations, grants, and membership fees often requires considerable judgment and a thorough understanding of the underlying arrangements. One of the most common challenges…
As the global maritime community gathered at Posidonia 2026, discussions extended well beyond vessels and technology. The industry’s agenda is increasingly shaped by sustainability requirements, access to finance, digital transformation, evolving governance expectations and an increasingly complex regulatory environment. Shipping companies today face simultaneous pressures, such as compliance with environmental regulations, securing funding for fleet…
The tax authorities have issued guidance on compliance obligations under the Global Minimum Tax framework, as implemented through Law 151(I)/2024, covering multinational and large domestic groups for financial years beginning between 31 December 2023 and 31 December 2024. The tax authorities confirm that a Group of Multinational Enterprises (MNEs) that falls within the scope of…
The financial services industry has long operated in an environment of evolving accounting and regulatory requirements. While IFRS 9 has now become embedded in financial reporting frameworks, recent developments and the introduction of IFRS 18 are prompting financial institutions to revisit not only their accounting policies, but also how they communicate performance to investors and…
Emeritus Professor Joe Nellis is economic adviser at MHA, the accountancy and advisory firm. When the European Central Bank raised interest rates from 0% to 0.5% in July 2022, Eurozone inflation had already reached 8.7% the month prior. Policymakers were rightly criticised for acting too slowly across 2022 and 2023, allowing inflation to climb above…
The OECD has released a common understanding agreed by jurisdictions that implemented the global minimum tax (GMT) with effect from 2024, aimed at mitigating delays in the availability of fully operational filing portals or in the establishment of exchange relationships for the GloBE Information Return (GIR) ahead of forthcoming filing deadlines. Under this understanding, jurisdictions…
Emeritus Professor Joe Nellis is economic adviser at MHA, the accountancy and advisory firm. Eurozone inflation rose to 3.2% in May as pressure builds on the European Central Bank to act now to combat rising prices. Despite efforts to control it, underlying price pressures remain strong, with service inflation and wage growth persisting, businesses passing on…
The tax authorities in Belgium 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…
Incorporating a so-called start-up entity does not necessarily mean that the company operates within the technology sector. Start-ups today are increasingly established as vehicles to promote innovative ideas capable of influencing a wide range of industries and sectors. The shipping industry, one of the most traditional and established industries globally, is progressively embracing innovation through…
The latest CYSTAT figures show tourist arrivals for the year 2026 up to April down 27.6% compared to the same period in 2025. The regional instability in the Middle East has directly affected nearby markets especially Israel, which dropped by 74.8% while our traditionally primary market, UK, saw a decrease of 21.8%. Further to the…
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…
For decades, the professional services sector has been one of the defining pillars of the Cypriot economy. Legal, tax, audit, corporate administration, fiduciary and advisory services have not merely supported business activity — they have been integral to Cyprus’ international business model and its position as a regional hub for investment and cross-border structuring. Today,…
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 latest Eurozone figures tell a worrying story: modest growth, rising inflation and a fresh energy shock that could derail an already fragile recovery. The Eurozone economy expanded by only 0.1% in the first quarter of 2026. While that keeps the…
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…
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…
After years of working alongside healthcare providers and medical groups, one reality stands out, IFRS 9 is rarely as straightforward in practice as it appears in theory. What is often viewed as a standard credit risk exercise quickly becomes more complex once it is applied to the day-to-day dynamics of the healthcare sector. Unlike many…
Notional Interest Deduction Rates 2026
Tax Flash Cyprus Tax Department Extension of Deadline without Penalt
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…
Craig McSherry, Partner at MHA, the UK member firm of the global Baker Tilly accountancy and consulting network discusses the key points of the Bank of England/Prudential Regulation Authority supervision priorities for International Banks in 2026: The PRA’s 2026 priorities for international banks and investment firms are designed to ensure safety and soundness amidst an…
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…
Further to the recent amendments to the Assessment and Collection of Taxes Law, introduced in the context of the Cyprus tax reform and effective as from 1 January 2026, revised administrative penalties will apply for the late submission of corporate income tax returns Tax Flash – Increased Penalties for Late Filing of Corporate Income Tax…
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…
Dear Partners, We would like to inform you that e-EFKA Circular No. 5/2026 has been published, providing for an adjustment to the maximum insurable earnings ceiling and to the amounts of insurance contribution categories for salaried lawyers, public sector lawyers, salaried engineers, and healthcare professionals, effective as of 1 January 2026. In summary, the main…
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…
Savvas Klitou, Regional Managing Partner and Head of Tax Services at Baker Tilly, analyses the weaknesses exposed by recent crises, the strategic challenges beyond 2025, and the new directions required for the Professional Services sector to achieve sustainable growth. FIVEFOLD RESILIENCE WITH AN EMPHASIS ON STRUCTURAL CHANGE Climate change is increasingly burdening the global…
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…
Introduction We would like to remind you of the deemed dividend distribution (DDD) provisions of the Special Contribution for the Defence Law that relate to the tax year 2023. Profits subject to deemed dividend distribution Companies are deemed to have distributed to their resident shareholders 70% of their accounting profits, after taxes and certain adjustments,…
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…
Following recent amendments to the Aliens and Immigration Law, the Cyprus Migration Department has announced that the Blue Card scheme will officially take effect on Monday, 7 July 2025. CY-Tax-Alert-Issue-5-2025-Blue-Card-Scheme-Activated
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…
Under the Corporate Sustainability Reporting Directive (CSRD), listed companies with more than 500 employees are required to report on their ESG impacts, risks, opportunities, policies, and performance starting from the 2024 financial year. The ‘first wave’ of reporters includes shipping companies from across the EU, who revealed how sustainability shapes the sector. We analyzed the…
About Baker Tilly Baker Tilly South East Europe is a leading firm of auditors, accountants, tax consultants and business advisors, operating in Cyprus, Bulgaria, Romania, Moldova and Greece. Country offices are independent member firms of Baker Tilly International; one of the top 10 largest networks in the sector. We are committed to delivering exceptional professional…
About Baker Tilly Baker Tilly South East Europe is a leading firm of auditors, accountants, tax consultants and business advisors, operating in Cyprus, Bulgaria, Romania, Moldova and Greece. Country offices are independent member firms of Baker Tilly International; one of the top 10 largest networks in the sector. We are committed to delivering exceptional professional…
About Baker Tilly Baker Tilly South East Europe is a leading firm of auditors, accountants, tax consultants and business advisors, operating in Cyprus, Bulgaria, Romania, Moldova and Greece. Country offices are independent member firms of Baker Tilly International; one of the top 10 largest networks in the sector. We are committed to delivering exceptional professional…
ABOUT BAKER TILLY Baker Tilly South East Europe is a leading firm of auditors and accountants, tax consultants and business advisors, operating in Cyprus, Bulgaria, Romania, Moldova and Greece. Country offices are independent member firms of Baker Tilly International, one of the Top 10 largest networks of the sector. A blend of young graduates and…
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…
On 10th of April 2025, the House of Representatives passed amendments to the Income Tax Law and the Special Defence Contribution Law, introducing withholding taxes on payments of royalties, dividends and interest, made to a company which is tax resident in a country included in the EU blacklist or to a company incorporated in any…
Career Opportunity On behalf Mercure Larnaca City Hotel, a brand new 4* boutique hotel operated by Solaar Hospitality, we seek to recruit Kitchen Cooks. There is the possibility to work full-time or part-time, as well as all year round or seasonal employment. Mercure City Hotel is a contemporary hotel nestled in the heart of Larnaca.…
Career Opportunity On behalf of a client, an established organization in Cyprus offering training and development schemes, we invite applications from hard-working and ambitious professionals to apply for the position of Learning & Development Training Inspector in Ammochostos. Duties and Responsibilities Carry out on site and remote inspections of training programs. Monitor and assess the…
Career Opportunity On behalf Mercure Larnaca City Hotel, a brand new 4* boutique hotel operated by Solaar Hospitality, we seek to recruit Barmen/Barwomen. There is the possibility to work full-time or part-time, as well as all year round or seasonal employment. Mercure City Hotel is a contemporary hotel nestled in the heart of Larnaca. With…
Career Opportunity On behalf Mercure Larnaca City Hotel, a brand new 4* boutique hotel operated by Solaar Hospitality, we seek to recruit Waiters/Waitresses. There is the possibility to work full-time or part-time, as well as all year round or seasonal employment. Mercure City Hotel is a contemporary hotel nestled in the heart of Larnaca. With…
Career Opportunity On behalf Mercure Larnaca City Hotel, a brand new 4* boutique hotel operated by Solaar Hospitality, we seek to recruit Kitchen cleaners. There is the possibility to work full-time or part-time, as well as all year round or seasonal employment. Mercure City Hotel is a contemporary hotel nestled in the heart of Larnaca.…
Career Opportunity On behalf of Solaar Hospitality currently operating Mercure Larnaca Beach hotel and its newest addition Mercure City Hotel, a brand new 4* boutique hotel, we seek to recruit experienced Receptionists for either morning or night shift. There is the possibility to work full-time or part-time, as well as all year round or seasonal…
Career Opportunity On behalf Mercure Larnaca City Hotel, a brand new 4* boutique hotel operated by Solaar Hospitality, we seek to recruit Cleaners for the hotel public areas. There is the possibility to work full-time or part-time, as well as all year round or seasonal employment. Mercure City Hotel is a contemporary hotel nestled in…
Career Opportunity On behalf of a client, a diversified group of companies, we seek to recruit a Junior Accountant for their offices in Larnaca. Duties & Responsibilities Having overall responsibility for the smooth operation of the group of companies accounting department Meet ad-hoc request for financial information Preparing monthly management reports Preparation of VAT/VIES returns…
About Baker Tilly Baker Tilly South East Europe is a leading firm of auditors, accountants, tax consultants and business advisors, operating in Cyprus, Bulgaria, Romania, Moldova and Greece. Country offices are independent member firms of Baker Tilly International; one of the Top 10 largest networks of the sector. A blend of young graduates and mature…
About Baker Tilly Baker Tilly South East Europe is a leading firm of Auditors, Accountants, Tax Consultants and Business Advisors, operating in Cyprus, Bulgaria, Romania, Moldova and Greece. Country offices are independent member firms of Baker Tilly International; one of the Top 10 largest networks of the sector. A blend of young graduates and mature…
About Baker Tilly Baker Tilly South East Europe is a leading firm of auditors, accountants, tax consultants and business advisors, operating in Cyprus, Bulgaria, Romania, Moldova and Greece. Country offices are independent member firms of Baker Tilly International; one of the Top 10 largest networks of the sector. A blend of young graduates and mature…
About Baker Tilly Baker Tilly South East Europe is a leading firm of auditors, accountants, tax consultants and business advisors, operating in Cyprus, Bulgaria, Romania, Moldova and Greece. Country offices are independent member firms of Baker Tilly International; one of the Top 10 largest networks of the sector. A blend of young graduates and mature…
ABOUT BAKER TILLY Baker Tilly South East Europe is a leading firm of auditors, accountants, tax consultants and business advisors, operating in Cyprus, Bulgaria, Romania, Moldova and Greece. Country offices are independent member firms of Baker Tilly International; one of the Top 10 largest networks of the sector. A blend of young graduates and mature…
About Baker Tilly: Baker Tilly South East Europe is a leading firm of auditors, accountants, tax consultants and business advisors, operating in Cyprus, Bulgaria, Romania, Moldova and Greece. Country offices are independent member firms of Baker Tilly International, one of the Top 10 largest networks of the sector. A blend of young graduates and mature…
About Baker Tilly Baker Tilly South East Europe is a leading firm of auditors, accountants, tax consultants and business advisors, operating in Cyprus, Bulgaria, Romania, Moldova and Greece. Country offices are independent member firms of Baker Tilly International; one of the Top 10 largest networks of the sector. A blend of young graduates and mature…
ABOUT BAKER TILLY Baker Tilly South East Europe is a leading firm of auditors, accountants, tax consultants and business advisors, operating in Cyprus, Bulgaria, Romania, Moldova and Greece. Country offices are independent member firms of Baker Tilly International; one of the Top 10 largest networks of the sector. A blend of young graduates and mature…
ABOUT BAKER TILLY Baker Tilly South East Europe is a leading firm of auditors, accountants, tax consultants and business advisors, operating in Cyprus, Bulgaria, Romania, Moldova and Greece. Country offices are independent member firms of Baker Tilly International, one of the Top 10 largest networks of the sector. A blend of young graduates and mature…
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…
“Think due diligence guarantees a risk-free deal? Or that it is simply about crunching numbers? Think again – there is much more at stake.” Due diligence reduces risks by providing insights but does not guarantee a risk-free deal. It goes beyond numbers by analyzing trends, assessing the sustainability of revenue, understanding working capital needs and…
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On 26th of February 2025, the Economics Research Center of the University of Cyprus, presented its proposal regarding the envisaged tax reform. Explore key proposed amendments and changes in our latest tax flash. CY-Alert-Cyprus-Tax-Reform-proposed-amendments
A double materiality assessment (DMA) is the cornerstone for determining a company’s ESG strategy and it is one of the main requirements of the Corporate Sustainability Reporting Directive (CSRD). Explore the process of conducting a DMA step-by-step in this practical playbook. DMA-playbook-ENG
Baker Tilly Cyprus Tax Guide 2025 At Baker Tilly Cyprus, we understand the importance of staying informed about the ever-evolving tax landscape. Our tax professionals put together a comprehensive tax guide designed to provide you with invaluable insights into the tax system in Cyprus. Tax-Guide-2025-Final-Version-03.01.2025
We would like to remind you of the deemed dividend distribution (DDD) provisions of the Special Contribution for the Defence Law that relate to the tax year 2022. CY-Alert-Issue-6_2024-Deemed-Dividend-Distribution-for-the-tax-year-2022
VAT rules for certain ‘virtual services’ in the EU are about to change. This will affect services such as live-streamed cultural events and paid webcam sessions, for example. The new rules to determine the place of supply take effect as of 1 January 2025. Our Baker Tilly International network partners in the Netherlands explain exactly…
On 5 November 2024, ECOFIN (the European Council on Economic and Financial Affairs) adopted the proposal ‘VAT in the Digital Age’. The new rules are intended to make the levy of VAT in the EU simpler and more resistant to fraud. In this article, our Baker Tilly International network partners in the Netherlands discuss ECOFIN’s…
ESG encompasses almost all areas of a company’s business: from its operations to its environmental practices and employee policies, to how it is affecting communities and managing risk. Ultimately, ESG criteria can give savvy investors, regulators and customers an insider’s look into the non-financial issues that make or break a company. Amidst the myriad of…
Corporate Social Reporting Directive On 5 January 2023, the Corporate Sustainability Reporting Directive (CSRD) has entered into force and is expected to affect approximately 50,000 companies across the EU. Under this directive, companies need to disclose their environmental, social and governance (ESG) practices and performance. CSRD-flash-letter-eng
Real people, Real stories – A Baker Tilly podcast
With State Gazette № 25 form 22.03.2024 changes concerning the Ordinance on keeping, storing and accessing the Commercial register were adopted. The essential ones concern the process of announcement of the UBO under the Measures Against Money Laundering Act (MAMLA) which is mandatory for companies owned by a foreign legal entity. 1. Detailed description of…
Απο τα πρώτα χρόνια των δραστηριοτήτων της υπό τη διεύθυνση του Μάριου Κλείτου, η επιχείρηση κατάφερε να προσελκύσει στην Κύπρο μεγάλες ελληνικές εταιρείες που είχαν επενδύσει στη Ρουμανία και τη Βουλγαρία. Το γεγονός αυτό ώθησε την ηγεσία της επιχείρησης να τις ακολουθήσει στις δυο αυτές βαλκανικές χώρες: «Επρόκειτο τότε για δύο υπό ένταξη στην ΕΕ…
Three important EU laws that we should look out for in 2024 Article by: Constantinos Michael, Director – Legal Services , Baker Tilly South East Europe Considering that 2023 was the “year of AI”, it seems now that 2024 is already moving to be quite similar. There is great hype about envisaged and proposed legislation…
Under State Gazette № 27 issued on 29.03.2024 changes relating to remote working location, conditions and procedures for implementation were adopted as follows: Place and nature of work They must be defined in the employment contract, and more than one place of work may be negotiated. The employer may change the place of work up to 30 working days…
Do you want to work for an employer who really listens to your ideas and provides a framework where you can effect positive change? Do you want the complexity of work, but still maintain some work-life balance? Do you crave challenging projects to get your teeth into? A sensible approach to agile working? Or maybe,…
On October 3rd, 2023, we were honoured to host our inaugural Baker Tilly Digital Day 2023, at the Athens Marriott hotel. The event gathered industry leaders, forward-thinking stakeholders, and tech enthusiasts and explored the transformative power of technology in shaping our world. The day was filled with captivating presentations, insightful discussions, and expert-led panel talks covering AI…
